/ CREATING POSSIBILITIES IN THE METALS INDUSTRY CREATING POSSIBILITIES IN THE METALS INDUSTRY
IDEAL Location to Serve the Growing Markets in Middle East and Africa
Presence of Anchor Industries Enabling Easy Access to Raw Materials: Aluminium & Steel
Reliable supply of power, gas and water at highly competitive rates
Unique Hot Metal Road to deliver Aluminium in molten form to the factory
Large areas of serviced land plots for future expansions
Choice of both Free Zone and Domestic Industrial Zone Facilities
/ KIZAD METALS CLUSTER
KIZAD Metals Cluster is dedicated zone for the regional and global upstream, midstream and downstream metals industry looking to take advantage of highly competitive utility costs, proximity to raw materials and excellent infrastructure and transportation links supporting the industry.
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Major brands that are already operating out of KIZAD Metals Cluster offers the perfect platform KIZAD Metals Cluster include Emirates Global for downstream metals conversion industries Aluminium (world’s largest ‘premium aluminium’ to serve the construction, infrastructure and producer), Al Gharbia Pipe Manufacturing Company industrial development projects in the Middle East (LSAW steel pipes), TALEX (aluminium profiles and African markets. and billets), DAC Aluminum (electrical conductive grade aluminium and aluminium alloy rods, wires, Existing and upcoming projects in KIZAD Metals and bare overhead conductors), Ducast (manhole Cluster create a sustainable industrial ecosystem covers and engineering castings), GERAB (pipes covering raw material producers, wide range of and tubes, fittings, flanges, valves, stud bolts downstream manufacturers and leading recycling and gaskets), DUCAB (cables, components and and related service providers. accessories) and Cast Aluminium Industries (recycling and related services) to name a few.
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United Arab Emirates Abu Dhabi #1 #1 IN THE MENA REGION IN THE UNITED ARAB EMIRATES
• Aluminium Exporting Country • Highest Contributor of the UAE’s GDP • Global Competitive Index1 • Highest Oil & Gas Reserves in the UAE • Global Innovation Index2 • Most Competitive Utility Rates in the UAE • Ease of Doing Business3 • Most Developed Technology Base 4 • Access to Electricity3 in the Middle East
1 World Economic Forum 2019 2 INSEAD 2019 3 World Bank 2019 4 McKinsey 2019
4 CREATING POSSIBILITIES IN THE METALS INDUSTRY WELCOME TO KIZAD
DEVELOPING ONE OF THE LARGEST INDUSTRIAL AND LOGISTICS ECOSYSTEMS IN THE WORLD
Khalifa Industrial Zone Abu Dhabi [KIZAD], a subsidiary of Abu Dhabi Ports, is the largest industrial and free trade zone in the MENA region and offers the most competitive business setup solutions and world-class infrastructure facilities in the UAE. Spread over 410 km2, KIZAD is home to over 600 companies across industries such as Food Processing, Polymers, Metals, Automotive, Pharmaceuticals, Logistics, Oil & Gas, among others.
Setting up at KIZAD enables businesses to benefit from the strategic location, faster access to markets, low set up and operational costs, flexibility in scale of operations and efficient investor support services.
IDEAL LOCATION TO SERVE THE MARKETS IN THE MENA REGION
Strategically located between Abu Dhabi and Dubai, the two most important economic centres of the region, KIZAD is ideally positioned to serve the key consumption markets in the GCC, Middle East and Africa.
5 CREATING POSSIBILITIES IN THE METALS INDUSTRY / Ambitious Growth Plans Driving the Industry IN THE REGION
$152 44.2 BILLION DOLLARS MILLION TONS 9%
Forecasted Value Middle East Crude Steel GCC Share in Global of GCC Construction Production in 2019 2 Primary Aluminium Industry by 2029 1 Production in 2019 4
$3.5 6+ BILLION DOLLARS MILLION TONS
Estimated Value Expected Primary of GCC Structural Steel Aluminium Production Fabrication Market in 2018 5 in the GCC in 2020 3
1 Fitchconnect 2 World Steel Association 3 Gulf Aluminium Council 4 World Aluminium 5 Mordor Intelligence
6 CREATING POSSIBILITIES IN THE METALS INDUSTRY / UAE – a global hotspot for the metals sector
8.7 8+ 3.3 MILLION TONS MILLION TONS MILLION TONS
Crude Steel Finished Steel Volume of Crude Consumption in Consumption in Steel Production the UAE in 2018 2 the UAE in 2018 2 in the UAE in 2019 2
906.2 4% KILOGRAMS
UAE’s Share of Global Apparent Per Capita Steel Aluminium Production Use in the UAE in 2018 2 in 2019 1
1 World Aluminium 2 World Steel Association
7 CREATING POSSIBILITIES IN THE METALS INDUSTRY / BUSINESS ECO SYSTEM AND INFRASTRUCTURE
Presence of Anchor Industries Enabling Easy Access to Raw Materials: Aluminium and Steel
Abu Dhabi is home to some of the largest primary raw material suppliers in the region including Emirates Global Aluminium and Emirates Steel. Emirates Global Aluminium (EGA) based out of KIZAD is the largest producer of premium Aluminium in the world. EGA shipped around 600,000 tonnes of Aluminium from Khalifa Port in 2018. Emirates Steel, based out of Abu Dhabi Industrial City (63 km from KIZAD), is the only integrated steel plant in the UAE. Emirates Steel produces key raw materials such as rebars, wire rods and heavy sections.
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EMIRATES STEEL EMIRATES GLOBAL ALUMINIUM
THE ONLY INTEGRATED STEEL WORLD’S LARGEST PREMIUM PLANT IN THE UAE ALUMINIUM PRODUCER • Heavy sections (suitable for construction, • Hot metal (ready for re-melt casting) industrial and engineering applications) • Billets for extrusion and forging • Reinforcing bar (for civil engineering and (for construction, industrial, transportation building projects) and automotive purposes) • Wire rod (for engineering applications, nails, • Rolling products (for packaging, can stock pins, construction, fencing materials) alloys, lithographic sheets and the • Direct reduced iron (an alternative material automotive industry) to scrap steel) • High-purity and foundry re-melt products • Steel billets (to produce rebar, wire rod or coil) (for electronics and aerospace, as well as automotive applications) • Sheet piles (for retaining walls, land reclamation, underground structures)
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HOT METAL ROAD TO DELIVER LARGE AREAS OF SERVICED ALUMINIUM IN MOLTEN LAND PARCELS FOR FORM TO THE FACTORY FUTURE EXPANSIONS
KIZAD offers innovative industry solutions such Spread over an area of 410 KM2, KIZAD can as hot metal road - a specially constructed accommodate industries of any scale due to roadway that enables the cost-effective and the meticulous master plan of the industrial energy-efficient transport and delivery of park. Large parcels of serviced land available aluminium in molten form- that gives downstream in the metals cluster are particularly suitable Aluminium industries a significant cost for upstream metals and downstream metal advantage. As melting of Aluminium is an energy conversion industries. Because KIZAD intensive process, the hot metal road helps the comprises multiple industrial cluster, land downstream industries to save significantly is allocated by grouping certain industries on their energy usage. Combined with already and service providers based on how competitive utility rates in Abu Dhabi, such best they can benefit one another. industry innovations make KIZAD a unique location for downstream metals industry.
CHOICE OF FREE ZONE RELIABLE SUPPLY OF UTILITIES AND DOMESTIC INDUSTRIAL AT HIGHLY COMPETITIVE RATES ZONE FACILITIES KIZAD has sufficient network infrastructure KIZAD offers both Free Zone and Domestic for power, gas and water, ensuring reliable and Industrial Zone facilities thereby opening up a efficient supply of all necessary utilities for wide range of possibilities to suit the investors’ energy intensive entities in steel and aluminium business strategies and operations. While the downstream industries. Abu Dhabi offers the Free Zone entities can enjoy 100% foreign most competitive utility rates in the UAE, making ownership and easy customs procedures, it a very cost-efficient location for downstream manufacturing / industrial entities in manufacturing activities in the metals sector. Domestic Industrial Zone can enjoy duty-free trade in the GCC region.
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KIZAD offers a wide range of outstanding We set up base in KIZAD in 2018 and though services and business solutions that are new entities do face obstacles, KIZAD’s suitable for all types of business activities such impressive headquarters is a one-stop set-up as manufacturing, logistics, trade and distribution. service facility. The presence of many related Being stationed on the doorstep of Khalifa Port government agencies at KIZAD also saves loads among the world’s most advanced deep seaports of time and energy while setting up business, “is another logistical advantage”. “especially for SMEs”. CHRISTIAN WITSCH CHINMAY OZA CEO, TALEX CEO, ROBUST STEEL
The best choice was to move to KIZAD. AGPC chose KIZAD as its base due to the The area was developed to handle the availability of land and utilities and with high impact of heavy industry. Besides, good connection to the UAE road network and KIZAD will be significant industrial hub, proximity of the new Khalifa Port. In future we especially for aluminium as entity wishes to expect most of our raw material imports as well as attract significant investments in the pipe exports to non GCC countries to be shipped “downstream industry”. “via Khalifa Port”. WAHEED AHMED MITSURU ANEZAKI GENERAL MANAGER, CAI GENERAL MANAGER, AGPC
Our facility in KIZAD has expanded KIZAD could add enormously at the planning our portfolio by introducing electrical and development phase of the projects by conductive grade and aluminium alloy rods, wires, engaging with the investor at regular intervals and bare overhead conductors, providing our and offering help to plug in gaps between customers with a greater range of Ducab products the authority’s requirements and investor to choose from and increasing convenience for expectation”. “them and broadening the solutions we are able to “ provide to them”. WAHEED AHMED GENERAL MANAGER, CAI MOHAMMED A. AL MUTAWA CHIEF COMMERCIAL OFFICER, DUCAB
11 CREATING POSSIBILITIES IN THE METALS INDUSTRY EASY GLOBAL ACCESS
Creating Possibilities to Grow and Succeed
WEEKLY DIRECT CONTAINER LINERS CONNECTING KHALIFA PORT AND KIZAD WITH THE WORLD
RED, BLACK AND MEDITERRANEAN SEAS
# SAILINGS COUNTRY 11 Kingdom of Saudi Arabia PACIFIC OCEAN (ASIA) 1 Lebanon 8 Egypt # SAILINGS COUNTRY ATLANTIC OCEAN 6 Morocco 36 China (NORTH AMERICA) 1 Israel 3 Hong Kong # SAILINGS COUNTRY 11 Turkey 5 South Korea 4 United States of America 9 Singapore 5 Bahamas 3 Malaysia
MEDITERRANEAN SEA AND INDIAN OCEAN ATLANTIC OCEAN (EUROPE) REGION
# SAILINGS COUNTRY # SAILINGS COUNTRY 3 Italy 5 Oman ARABIAN GULF AND 5 Greece THE GULF OF OMAN 1 Yemen 2 Germany 17 India # SAILINGS COUNTRY 3 Netherlands 17 Pakistan 82 United Arab Emirates 2 Belgium 3 Sri Lanka 16 Kingdom of Saudi Arabia 2 United Kingdom 2 Somalia 13 Kuwait 5 France 1 Kenya 9 Oman 6 Spain 9 Bahrain 5 Qatar 10 Iraq
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The Ideal Location to Serve the Growing Markets in the Middle East and Africa
KIZAD offers true multimodal access through the port, roads and upcoming rail - all available onsite - and five major international airports within just 2 hours’ driving distance. It is perfectly located to serve the growing markets in the Middle East and Africa that offer some of the biggest opportunities for the metals sector through their massive investments in the construction and infrastructure projects.
COUNTRY / EMIRATE Gross domestic POPULATION product (GDP)
UNITED ARAB EMIRATES USD 422 Billion (2018) 9.3 Million (2018)
ABU DHABI USD 254 Billion (2018) 2.8 Million (2018)
DUBAI USD 115 Billion (2018) 3.2 Million (2018)
SHARJAH USD 26 Billion (2018) 1.6 Million (2018)
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14 14 CREATING POSSIBILITIES IN THE METALS INDUSTRY / KHALIFA PORT
Strategically located halfway between Abu Dhabi and Dubai, Khalifa Port is the first semi-automated, deep-water, container port in the GCC region. Fully owned by Abu Dhabi Ports, the port handles container cargo, general cargo, roll-on and roll-off (RoRo) as well as break-bulk cargo.
Connectivity is at the core of Khalifa Port’s uniqueness. It serves over 25 shipping lines, offering global reach and direct links to major international destinations. The port is adding capacity to handle over 9 million TEUs by 2024, significantly increasing from its current capacity of 2.5 million TEUs. It will also be the first port in UAE to be linked through the new Etihad Rail network, which is currently under construction.
15 CREATING POSSIBILITIES IN THE METALS INDUSTRY / Free Zone and Domestic Industrial Zone Facilities
KIZAD offers both Free Zone and Domestic Industrial Zone facilities for investors, who can choose their facilities based on their business strategy and requirements.
Free Zone The Free Zone jurisdiction allows 100% foreign ownership in companies, and it is suitable for wholesale distributors, re-exporters, warehousing activities, service providers and manufacturers targeting markets outside the MENA region. • 100% foreign ownership in companies • 0% customs duty • 0% corporate, personal and sales tax • No restrictions on capital and profit repatriation • Designated Zone for VAT Exemption • No minimum capital requirements
Domestic Industrial Zone Companies in the domestic industrial zone can enjoy direct access to the markets in the UAE and the GCC area. Goods produced in the domestic industrial zone can be certified “MADE IN UAE” by the relevant authorities and can avail duty-free status in the GCC region. • Joint venture with a UAE partner • 0% corporate, personal and sales tax • 0% customs duty for industrial raw materials and machinery • Easy repatriation of profits and capital • ‘MADE IN UAE’ certificate for qualified products • Potential for duty-free trade in the GCC
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Key feature Free Zone Domestic industrial zone
OWNERSHIP 100% foreign ownership Up to 49% foreign ownership
TAX (CORPORATE, 100% tax free 100% tax free INCOME & SALES)
VAT No VAT Standard VAT rate is applicable
SALES IN LOCAL MARKET Through distributors and / Direct or local agents
CUSTOMS DUTY No customs duties within Standard customs duty for sales Free Zone to local market (import) and GCC (first point of entry-import).
Standard customs duty to be paid No customs duty applicable on deposit, for goods in transit: for sales of locally manufactured goods in GCC and very low duty - Between points of entry structure in GAFTA countries (seaports/airports/borders) (for National Industrial and Free Zones Licence Holders) - Between Free Zones and point of exit (export).
Standard customs duty for sales Customs duty exceptions on to local market (import) and GCC import of raw materials and (first point of entry-import). machinery for manufacturing activities
Local customs duties applicable Local customs duties applicable for imports into other countries. for imports into other countries
CAPITAL & PROFIT REPATRIATION 100% Allowed As per the contract between partners
LABOUR LAW Free Zone rules and labour law UAE labour laws
17 CREATING POSSIBILITIES IN THE METALS INDUSTRY / KEY ADVANTAGE
Connectivity and Growing Community of Proximity ADVANTAGE Businesses, Clusters • Easy access to key markets through 2 global and Amenities ports, 5 international airports, multi-lane • Multiple residential, social areas, leisure highways and planned rail, connecting KIZAD facilities within 10 minutes’ drive with the rest of the UAE and GCC • Multiple on-site staff accommodation • Nearby production and storage facilities of facilities are under various stages of aluminium and steel enable short delivery planning and development lead times • Growing ecosystem with primary metals • Non-restricted exclusive road for movement producers and downstream metal of project cargo and over-sized structures to products manufacturers fast-track set-up logistics • Clustered approach with shared amenities • Technical support from key partners and for better planning and leaner development industry leaders for customers
Enabling Significant Flexibility in Scale Cost Savings of Operations • The most competitive utility rates in the UAE • High capacity utilities network and • Unique “Hot Metal Road” enabling lower energy infrastructure provisioned to support consumption and inventory costs businesses of all scales • Customs duty benefits on imports of raw • Future-ready development with provisions for material and capital goods for manufacturing expansion and integration with new projects • Prime location facilities at the most • Option to operate for the local and regional/ competitive lease rates global markets through freezone and domestic industrial zone facilities • Flexibility in lease tenure and company structuring
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