/ CREATING POSSIBILITIES IN THE AUTO INDUSTRY CREATING POSSIBILITIES IN THE AUTO INDUSTRY IDEAL location to serve the auto markets in the Middle East, Africa, India and Europe Key raw materials suppliers in the industry value chain present in Abu Dhabi – Aluminium, POLymers, Steel Presence of auto parts manufacturers supplying parts to global brands Upcoming manufacturing projects for key products such as PASSENGER CAR TYRES DEDICATED PORT FACILITIES, including RoRo terminal, supporting the auto sector Regional hub for automotive logistics / KIZAD AUTO CLUSTER KIZAD Auto Cluster is a dedicated cluster for the automotive manufacturers, parts makers, distributors and after market products and service providers looking to serve the lucrative automotive markets in the Middle East, Africa, India and Europe. 2 CREATING POSSIBILITIES IN THE AUTO INDUSTRY Investors in KIZAD Auto Cluster can enjoy KIZAD Auto Cluster is already home to storage and excellent connectivity to the local, regional distribution of Completely Built-Up Automobiles and global markets. Proximity to the major (CBU), re-exporting of new cars, manufacturing auto markets, access to raw materials such as and distribution of auto components and polymers, aluminium and steel, key auto-parks equipments. Investments and developments in manufacturers present in the Auto Cluster and the pipeline include used car markets, last mile excellent infrastructure facilities including an customization, fully systemised auction houses, advanced RoRo terminal at Khalifa Port are basic components manufacturing, automotive just some of the key factors that make KIZAD manufacturing and a retail market place for auto Auto Cluster an attractive location for a industry. growing number of businesses in the automotive industry. 3 CREATING POSSIBILITIES IN THE AUTO INDUSTRY United Arab Emirates Abu Dhabi #1 #1 IN THE MENA REGION IN THE UNITED ARAB EMIRATES • Global Competitive Index 1 • Highest Contributor of the UAE’s GDP • Global Innovation Index 2 • Highest Oil & Gas Reserves in the UAE • Ease of Doing Business 3 • Most Competitive Utility Rates in the UAE • Access to Electricity 3 • Most Developed Technology Base in the Middle East 4 1 World Economic Forum 2019 2 INSEAD 2019 3 World Bank 2019 4 McKinsey 2019 4 CREATING POSSIBILITIES IN THE AUTO 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 AUTO INDUSTRY / Middle East and GCC: Better Performance Ahead UNITED ARAB EMIRATES 2.3 800,000 MILLION CARS THOUSAND CARS Forecast of New Forecast of New Passenger Car Sales in Passenger Car Sales the MENA Region in 2020 1 in the GCC in 2020 1 2.8 59.6 555.7 MILLION VEHICLES MILLION PEOPLE MILLION PEOPLE Forecast of Vehicle Sales Population Forecast Population Forecast in the MENA Region in 2020 1 for GCC by 2021 1 for MENA by 2021 1 1 Fitchconnect 6 CREATING POSSIBILITIES IN THE AUTO INDUSTRY / UAE – A Strategic Market and Location for Auto Industry #1 UAE Automotive Risk UNITED ARAB EMIRATES Reward Rank In MENA 2 % $7.6 % 9 BILLION DOLLARS 2 Growth Rate of UAE’s Total UAE’s Trade for Auto Parts Projected Growth (CAGR) Trade of Vehicles from and Accessories in 2018 1 of New Vehicle Sales in 2011 to 2018 1 the UAE from 2018 - 2028 2 1 UNCOM Trade 2 Fitchconnect 7 CREATING POSSIBILITIES IN THE AUTO INDUSTRY / MAIN ORIGINS OF THE CARS SOLD IN THE GULF REGION PERCENTAGE OF CARS SOLD IN GULF REGION BY ORIGIN AND BRAND TYPE 23% 48% EUROPE JAPAN & KOREA 13% 15% NORTH AMERICA SOUTH EAST ASIA AND AUSTRALIA Source: UNCOMtrade 8 CREATING POSSIBILITIES IN THE AUTO INDUSTRY KIZAD is rapidly expanding as more and more companies see the value of having the presence here especially in the field of logistics, manufacturing, and trading enterprises. Gallega is working closely with KIZAD to seamlessly integrate their services with ours to make sure that the customers experience efficiency. “Our partnership with KIZAD has helped to attract more businesses due to its strategic location.” Shirish Deshpande CEO, GALLEGA GLOBAL LOGISTICS 9 CREATING POSSIBILITIES IN THE AUTO INDUSTRY EASY GLOBAL ACCESS Creating Possibilities to Grow and Succeed WEEKLY DIRECT CONTAINER LINERS CONNECTING KHALIFA PORT AND KIZAD Red, Black & INDIAN OCEAN Mediterranean Seas WITH THE WORLD 5 Oman 11 Kingdom of Saudi Arabia 1 Yemen 1 Lebanon 17 India 8 Egypt 17 Pakistan 6 Morocco 3 Sri Lanka 1 Israel 2 Somalia 11 Turkey 1 Kenya Mediterranean Sea PACIFIC OCEAN & Atlantic Ocean (ASIA) (EUROPE) 36 China 3 Italy 3 Hong Kong 5 Greece 5 South Korea 2 Germany Atlantic Ocean 9 Singapore 3 Netherlands (NORTH AMERICA) 3 Malaysia 2 Belgium 4 United States of America 2 United Kingdom ARABIAN GULF & 5 Bahamas 5 France THE GULF OF OMAN 6 Spain 82 United Arab Emirates 16 Kingdom of Saudi Arabia 13 Kuwait 9 Oman 9 Bahrain 5 Qatar 10 Iraq 10 CREATING POSSIBILITIES IN THE AUTO INDUSTRY The Ideal Location to Serve the Automotive Industry Part of Khalifa Industrial Zone Abu Dhabi (KIZAD), KIZAD Auto Cluter 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. SHARJAH GDP USD 26.4 Billion (2018) Population 1.45 Million (2016) DUBAI GDP USD 108 Billion (2018) Population 2.6 Million (2016) ABU DHABI GDP USD 253.5 Billion (2018) Population 2.9 Million (2016) AL AIN UNITED ARAB EMIRATES GDP USD 435.7 Billion (2018) POPULATION 9.36 Million (2016) 11 CREATING POSSIBILITIES IN THE AUTO INDUSTRY 12 12 CREATING POSSIBILITIES IN THE AUTO 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. 13 CREATING POSSIBILITIES IN THE AUTO INDUSTRY / BUSINESS ECO SYSTEM AND INFRASTRUCTURE IDEAL LOCATION TO SERVE THE AUTO MARKETS IN THE MIDDLE EAST, AFRICA, INDIA AND EUROPE KIZAD is strategically located between Abu Dhabi and Dubai – two of the most important commercial hubs in the Middle East – and its location helps investors to serve all important markets in the UAE as well as in the MENA region easily. KIZAD and its mega port, Khalifa Port offer global connectivity to reach all key automotive markets. KEY RAW MATERIALS SUPPLIERS IN THE INDUSTRY VALUE CHAIN PRESENT IN ABU DHABI – ALUMINIUM, PLOYMERS, STEEL Emirates Global Aluminium (EGA) present in KIZAD is one of the largest aluminium production sites in the world while, Borouge – leading polymer producer - occupies a distribution centre in KIZAD which is among the largest distribution centres for polymers in the world. Emirates Steel, located in the Industrial City of Abu Dhabi, has existing wire road mill and planned high strength steel facilities to serve the auto parts manufacturers. PRESENCE OF AUTO PARTS MANUFACTURERS SUPPLYING PARTS TO GLOBAL BRANDS TALEX, is the Middle East’s most highly automated and flexible extrusion plant, for a wide range of products - from liquid primary metal to precision machined aluminium products for GCC and global markets. TALEX is a reputed supplier of key automotive parts for a number of global automotive brands across the world. 14 CREATING POSSIBILITIES IN THE AUTO INDUSTRY MANUFACTURING PROJECTS FOR KEY PRODUCTS SUCH AS PASSENGER CAR TYRES In addition to the automotive parts manufacturers, KIZAD is also home to the first passenger car radial (PCR) tyre manufacturing facility in the UAE. China based Roadbot has started developing a manufacturing facility in KIZAD that will have a capacity of over 10 million tyres per year. DEDICATED PORT FACILITIES, INCLUDING RORO TERMINAL, SUPPORTING THE AUTO SECTOR Dedicated RoRo terminal at Khalifa Port, Autoterminal Khalifa Port, is a joint venture between Abu Dhabi Ports and Auto Terminal Barcelona and aims to create the best RoRo terminal in the Middle East. It will be able to store approximately 17,000 vehicles in optimal conditions while ensuring perfect traceability. Expanding the car terminal area to 300,000 m2, with highly efficient storage and berthing, the facility will be able to process a high volume of vehicles. REGIONAL MEGA HUB FOR AUTOMOTIVE LOGISTICS Taking advantage of the facilities in KIZAD and Khalifa Port are some of the biggest automotive dealers and logistics service providers in the region. Al Futtaim Motors, distributors of automotive brands such as Toyota, Honda, Chrysler and Volvo in the UAE, and Ghassan Aboud Cars, a leading specialist in regional and international automotive re-export and supply chain solutions are using KIZAD as their regional hub for automotive logistics.