/ CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY

IDEAL location to serve the plastics consumption markets in the Middle East and Africa

Volume rebates on raw materials available within the Park

Most competitive utility rates in the UAE

Shorter transits and lower order batch sizes to reduce supply chain costs

Essential products and services in polymers value chain within the Park

/ KIZAD POLYMERS PARK

KIZAD Polymers Park is a custom-built cluster for the global plastic and polymers industry looking to take advantage of proximity to raw materials and a reliable supply of utilities at competitive rates. KIZAD Polymers Park, co-designed and developed with technical experts and leading regional entities in the polymers industry, offers easy and preferential access to raw materials, highly developed infrastructure, global connectivity and favourable investment policies.

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Major brands that are already operating out of KIZAD Polymers Park include Songwon (additives and speciality chemicals), Cosmoplast (households, building materials & infrastructure products), Interplast (PVC compounds, packaging, electrical products etc.), Palletco (industrial packaging solutions), and Schmidt Logistics (specialized logistics for dry bulk products) to name a few.

KIZAD Polymers Park aims to be a major economic driver in the region, producing 300-400 kilotonnes of multi-use plastic products a year, and creating up to 7,000 new jobs by 2025.

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United Arab Emirates #1 #1 IN THE MENA REGION IN THE

• Fastest Growing Polymers • Highest Contributor of the UAE’s GDP 1 Industry in the GCC • Highest Oil & Gas Reserves in the UAE 2 • Global Competitive Index • Most Competitive Utility Rates in the UAE 3 • Ease of Doing Business • Most Developed Technology Base • Access to Electricity 3 in the Middle East 4

1 Gulf Petro Chemicals Association 2 World Economic Forum 2019 3 World Bank 2019 4 McKinsey 2019

4 CREATING POSSIBILITIES IN THE POLYMERS 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 , 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 , 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 POLYMERS INDUSTRY / GCC – Rich in Polymer Raw Materials

$50.2 $40 34.4 BILLION DOLLARS BILLION DOLLARS MILLION TONS

Value of GCC Polymer The Polymer Industry’s Total Forecasted Volume of GCC 2 Industry by 2025 1 Contribution to the Gulf Polymer Industry by 2023 Region’s GDP in 2018 2

278K 55.6K JOBS SUPPORTED DIRECT EMPLOYEES

Jobs Supported by Number of Direct Employees the Polymer Industry in the GCC Polymer in the GCC in 2018 2 Industry in 2018 2

1 Goldstein Research 2 GPCA

6 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY / UAE – A HUB for the POLYMERS sector 2020 2025 200% ADNOC’s Planned Growth in Petrochemical Capacity by 2025 1

15.1 4.1 MILLION TONS MILLION TONS

Production Capacity UAE Polymer of Polymers in UAE Output in 2018 2 by 2025 1

1 ADNOC 2 GPCA

7 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY / BUSINESS ECO SYSTEM AND INFRASTRUCTURE

STRATEGIC PARTNERSHIPS DELIVERING VALUE FOR POLYMERS DOWNSTREAM ACTIVITIES

KIZAD Polymers Park is the result of strategic collaborations with key players in the industry such as Abu Dhabi Ports and Abu Dhabi National Oil Company (ADNOC), one of the leading energy producers operating across the entire hydrocarbon value chain. The strategic collaboration framework between ADNOC and KIZAD Polymers Park aims to accelerate investment and innovation in the region’s plastics industry while offering companies swift and cost-effective access to polymers.

RAW MATERIALS WITHIN THE PARK AND AVAILABLE IN THE REGION

Abu Dhabi’s position as the key crude oil producer and petrochemical hub in the region also helps the polymers conversion industry in the UAE. Major raw materials suppliers such as Borouge present in KIZAD offer competitive pricing and better credit terms for investors. Proximity to such strategic players enables faster delivery of materials, smaller order quantity and flexibility in new product development. In addition to the raw materials available in Abu Dhabi, downstream polymer converting units in KIZAD Polymers Park can take advantage of the abundant supply of raw materials by other key providers in the GCC region.

RELIABLE AVAILABILITY OF POWER, GAS AND WATER

KIZAD Polymers Park has sufficient infrastructure network for all necessary utilities such as power, gas and water, ensuring reliable and efficient supply for all polymers conversion activities. Abu Dhabi offers the most competitive utility rates in the UAE, making it a very cost-efficient location for downstream manufacturing activities.

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PRODUCTS AND SERVICES IN POLYMERS VALUE CHAIN

Abu Dhabi hosts a vibrant polymers ecosystem, including diversified raw materials, production systems, technical support, polymers distribution and logistics. This ecosystem caters to a variety of different polymers segments, including industrial use, such as packaging, construction, and semi-finished products; end-use customers, such as household goods, agriculture and hygiene products; material science, including compounded and composite materials, and 3D Printing.

POLYMER-CENTRIC LOGISTICS AND INFRASTRUCTURE

World-class container handling facilities at act as a key enabler for the polymers industry at KIZAD. Facilitating the polymer value-chain, Khalifa Port and KIZAD host over 230,000 m2 of warehouses, which have an annual throughput exceeding of 1.5 million tonnes. Specialised service providers present in KIZAD offer packaging, product handling and intermodal transportation of dry bulk products. They cater to the logistics requirements of dry petrochemical and mineral industries across the region and internationally.

KIZAD POLYMERS PARK PACKING PLANT

The packing plant in KIZAD Polymers Park has three fully automated ‘Fill, Form, Seal’ – FFS polymer packing lines with a capacity of 2,000 bags/hour and one bulk bag filling line. The overall packing capacity of the plant is more than 700,000 tonnes per year.

9 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY / Availability of polymer & plastic raw materials in the region

UNITED ARAB SAUDI ARABIA KUWAIT OMAN EMIRATES • Ethylene • Propylene • Formaldehyde • Urea • Propylene • Styrene Monomer • Acetic Acid • Ammonia • Butadiene • Ethylene Glycol • Polyesters • Ethylene • Methanol • Polypropylene • Acrylics • Polyethylene • Styrene Monomer • Paraxylene • Methylamines • Polypropylene • Benzene • PET • Polycarbonate • Low Density • Paraxylene • HDPE Polyethylene • Glycols (LDPE) • Olefin • Natural Gas • Industrial Gases

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ADNOC is proud to collaborate with We anticipate great success in Abu Dhabi, Abu Dhabi Ports and KIZAD to further and we appreciate KIZAD’s support in strengthen and develop the UAE’s conversion helping us set up and connect to its integrated industry. Together, we will work to ensure polymer-centric logistics hub.Our presence in alignment with the Derivative & Conversion KIZAD emphasises our determination to strengthen Parks and other industrial parks catering to and expand our offering and ensure our business “different parts of the polymers value chain, “breaks into new markets. Having swift access offering investors a wide choice of options, to key raw materials from within the KIZAD while also building on synergies. We welcome Polymers Park and the ability to ship faster to the competitive commercial environment this market thanks to the world-class infrastructure will create. This partnership is another example available at KIZAD, is a major advantage to of ADNOC’s determination to support the companies such as ours”. diversification of Abu Dhabi’s industrial base as we implement our downstream strategy and ASHISH MALANI associated corporate transformation programs”. CEO, SHRINATH FLEXIPACK

ABDULAZIZ ALHAJRI DIRECTOR, ADNOC DOWNSTREAM DIRECTORATE We are glad to contribute in such initiative, in line with Abu Dhabi’s long-term strategy. GCB will enable the development of KIZAD and add value to the polymers ecosystem”. India has an enormous plastic and polymers manufacturing industry and the UAE is one MOHAMMED YOUSIF AL NOWAIS of our top five import markets. The MoU with KIZAD “BOARD MEMBER, GULF COMPOUND and the potential to work with them to increase BLENDING (GCB) our mutual opportunities in new markets is an “excellent strategic move on both our parts”. MEELA JAYADEV PRESIDENT, AIPMA

11 CREATING POSSIBILITIES IN THE POLYMERS 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 Plastics Consumption Markets

Part of Abu Dhabi (KIZAD), KIZAD Polymers Park 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.

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 POLYMERS 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 network, which is currently under construction.

15 CREATING POSSIBILITIES IN THE POLYMERS 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 • No restrictions on sales in the domestic market • 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 POLYMERS INDUSTRY / KEY ADVANTAGE

Connectivity and Growing Community Proximity ADVANTAGE of 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 onsite staff accommodation facilities • Nearby production and storage facilities enable are under various stages of planning short delivery lead times and development • Excellent connectivity to regional raw • Clustered approach with shared amenities material producers for better planning and leaner development • Presence of supporting entities such as for customers polymer packaging and specialised logistics • Access to training, research and services within the zone product development assistance from strategic partners

Enabling Significant Flexibility in Scale Cost Savings of Operations • Volume rebates on polymer raw materials • Future-ready development with provisions for by key suppliers expansion and integration with new projects • Prime location facilities at the most • High capacity utilities network and competitive lease rates infrastructure provisioned to support • The most competitive utility rates in the UAE businesses of all scales • Customs duty benefits on imports of raw • Option to operate for the local and regional/ material and capital goods for manufacturing global markets through freezone and domestic industrial zone facilities • Flexibility in lease tenure, structuring etc.

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19 At KIZAD we’re here to listen, support and deliver. Connect with us to find out more.

+971 800 10 20 30

[email protected]

kizad.ae @kizaduae