/ CREATING POSSIBILITIES IN THE FOOD INDUSTRY CREATING POSSIBILITIES IN THE FOOD INDUSTRY

Close to Source and Consumption Markets

Pollution-free operating environment

Reliable Availability of Utilities

Efficient Infrastructure for Waste Management

Advanced Laboratory Services

Packaging, Printing & Specialised Logistics Solutions

/ KIZAD FOOD CLUSTER

KIZAD Food Cluster is the hub for food processing, storage and distribution activities in the UAE, serving the major consumption markets in the region. For regional and global food processing companies looking to serve the markets in the MENA region, KIZAD Food Cluster offers a wide range of benefits and facilities to set up their operations in quick time.

2 CREATING POSSIBILITIES IN THE FOOD INDUSTRY

In addition to major global and regional brands such as BRF, National Food Products Company, Binghatti, Pinar, Spinneys etc. providers of essential services and products such as cold storage facilities, testing and certification facilities, packaging solutions etc. have also setup their operations in KIZAD Food Cluster. Development plans of the cluster include developing central processing centres for sorting and grading etc. while initiatives are already underway to develop bulk-terminal, livestock handling capabilities, liquid terminal, statutory bodies on site etc. in .

3 CREATING POSSIBILITIES IN THE FOOD INDUSTRY

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

• Global Competitive Index1 • Highest Contributor of the UAE’s GDP • Global Innovation Index2 • Highest Oil & Gas Reserves in the UAE • Ease of Doing Business3 • Most Competitive Utility Rates in the UAE • Access to Electricity3 • Most Developed Technology Base in the Middle East4

1 World Economic Forum 2019 2 INSEAD 2019 3 World Bank 2019 4 McKinsey 2019

4 CREATING POSSIBILITIES IN THE FOOD 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 FOOD INDUSTRY / A REGIONAL HUB FOR THE FOOD INDUSTRY

60.7 908.7 957.1 MILLION TONS KILOGRAMS KILOGRAMS

Forecast of Food GCC per Capita Forecasted per Capita Consumption in GCC Estimated Food Food Consumption by 2023 (CAGR Of 3.3% Consumption in 2018 2 in GCC by 2023 2 During 2018 – 2023) 2

$9.1 $5.4 BILLION DOLLARS BILLION DOLLARS

Forecasted Sales of GCC’s Annual Imports Functional Food in of Halal Meat in 2018 1 the GCC 2020 2

1 UNCOMtrade 2 Alpen Capital GCC Food Industry Report 2019

6 CREATING POSSIBILITIES IN THE FOOD INDUSTRY / Increasing Demand for Packaged Food Products

$5.7 BILLION DOLLARS 6%

Demand for Packaged Forecasted Growth in Demand Food in UAE in 2018 1 for Packaged Food In UAE (CAGR: 2018 - 2023) 1

$7.7 BILLION DOLLARS 7%

Forecasted Demand for Growth in Demand for Packaged Food in UAE Packaged Food in UAE in 2023 1 (2014 - 2018) 1

1 Food Export/Euromonitor

7 CREATING POSSIBILITIES IN THE FOOD INDUSTRY

The Ideal Location to Serve the Growing Markets in the Middle East and Africa

Part of Khalifa Industrial Zone Abu Dhabi (KIZAD), KIZAD Food Cluster 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)

8 CREATING POSSIBILITIES IN THE FOOD 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

9 CREATING POSSIBILITIES IN THE FOOD INDUSTRY

10 10 CREATING POSSIBILITIES IN THE FOOD 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.

11 CREATING POSSIBILITIES IN THE FOOD INDUSTRY / INFRASTRUCTURE AND BUSINESS ECO SYSTEM

EXCELLENT CONNECTIVITY EFFICIENT INFRASTRUCTURE TO SOURCE AND CONSUMPTION FOR WASTE MANAGEMENT

MARKETS Fully aligned with Abu Dhabi Centre of Waste Its close proximity to – the hub for fresh Management for efficient handling of solid produce in the UAE – enables easy access to wastes, KIZAD hosts operational, centralised raw materials required for the food processing sewage treatment facilities - reducing the industry. Its strategic location between cost of waste management for its investors. Abu Dhabi and Dubai, the 2 most important commercial hubs in the region, enables KIZAD to connect around 75% of UAE’s population and 89% ADVANCED LABORATORY of the country’s GDP within a 90-minute driving SERVICES FOR TESTING AND distance along congestion-free 8 lane highways. CERTIFICATIONS

KIZAD hosts advanced laboratories offering RELIABLE AVAILABILITY OF testing and certification services that can POWER, GAS AND CLEAN WATER further boost the cluster benefits for the entities in the food cluster. These laboratory KIZAD Food Cluster is equipped with sufficient services are designed to offer reliable, infrastructure network for all necessary cost-effective and cutting-edge analytical utilities such as power, clean water and gas. solutions to help investors to maintain high ensuring reliable and efficient supply for all food levels of product quality and safety. processing, storage and distribution activities. POLLUTION-FREE OPERATING ESSENTIAL PRODUCTS AND ENVIRONMENT SERVICES IN THE VALUE CHAIN Located in a pollution-free operating KIZAD hosts a number of supporting industries environment within KIZAD, the food cluster such as packaging, printing etc within the zone is a multi-phased development, allowing for which help to improve the efficiency of business flexibility to match the requirements of the operations for the investors in KIZAD Food Cluster. businesses. The first phase of the cluster has Specialised logistics service providers in the over 2.5 million m2 of land allotted for food zone offer cold and chilled storage facilities for processing entities whereas the pre-built the food sector. facilities available in KIZAD enables quick set up and project initiation. The cluster is expected to grow many fold in the coming years.

12 CREATING POSSIBILITIES IN THE FOOD INDUSTRY

Today, Raubi is expanding, and through a new state of the art plant in Kizad - Abu Dhabi, the Raubi product range is currently penetrating the local market with five assorted flavours as a start, and Introducing multiple “additional flavours through a five year plan MUHAMMAD BINGHATTI CEO, BINGHATTI HOLDINGS

13 CREATING POSSIBILITIES IN THE FOOD 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

14 CREATING POSSIBILITIES IN THE FOOD INDUSTRY

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

15 CREATING POSSIBILITIES IN THE FOOD INDUSTRY / KEY ADVANTAGE

Enabling Significant Cost Savings

• Prime location facilities at the most competitive lease rates • The most competitive utility rates in the UAE • Substantial tax and duty benefits

Connectivity and Proximity ADVANTAGE

• Easy access to key markets through 2 global ports, 5 international airports, multi-lane highways and planned rail, connecting KIZAD Food Cluster with the rest of the UAE and GCC • Shared facilities for product testing and certification services • Presence of supporting industries such as packaging, specialised logistics services within the zone

Flexibility in Scale of Operations

• Future ready development with provisions for expansion and integration with new projects • Option to operate for the local, regional and global markets through free zone and domestic economic facilities • Flexibility in lease tenure and structuring.

Growing Community of Businesses, Clusters and Amenities

• Multiple residential, community services, leisure facilities within 10 minutes’ drive • Multiple on-site staff accommodation facilities are under various stages of planning and development • Clustered approach with shared amenities for better planning and leaner development for customers

16 CREATING POSSIBILITIES IN THE FOOD INDUSTRY

17 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