Tawazun Industrial Park (Tip) is aiming to attract Dh2.5 billion in investments from local and international manufacturers across defence-related industries in the next five years, a company official told Gulf News.
The industrial zone, located between Abu Dhabi and Dubai and owned by UAE-based industrial manufacturer Tawazun Holding, was established last year and houses Tawazun’s major subsidiaries.
Tip hopes to become a manufacturing base for industries, including basic metals, precision, oil and gas services, aerospace and defence, and attract investors to set up their plants in the park, said Rashid Helal Al Darmaki, advisor of strategy and portfolio management at Tip.
Tip is currently in talks with at least seven international and local investors that it hopes will set up shop at the industrial park, he said.
“I expect deals with two investors this year,” he said.
After completing basic infrastructure in the park, Tip is starting phase two of developing the roads and power grid to handle the capacity for more factories, he said, adding that this will take two years.
Seven factories are currently set up at Tip, all Tawazun Holdings’ subsidiaries including defense vehicle manufacturer Nimr Automotive and arms maker Caracal International, he said. Tip has 1,200 employees, with 600 living in accommodation at the park.
Tip is now working on an incentives package to offer investors, Al Darmaki said.
“We have ready infrastructure, security, strategic locations between Abu Dhabi and Dubai, we are 20 minutes from Khalifa port, 30 minutes from Abu Dhabi airport and 90 minutes from Dubai airport,” he said. “Etihad Rail will pass through the park. We are trying to create complete services in one place.”
Tip is also a ‘one-stop shop’ for investors as it handles the process of setting up business here for international companies, he said, adding that Tip works on the basis of leasing land to investors to build their own factories on them.
Industrial land lease rates at Tip are about Dh30 to Dh35 per square foot, he said.
However, Tip does not offer investors financial facilities such as being a facilitator between them and banks. “Maybe in the future, for now we focus on the infrastructure,” he said.
Tip’s aim is to build a ‘strategic industry’ for the UAE, transfer know-how from international companies and train Emirati talent to work in factories, he said.
“We are part of industrial areas in the UAE and we complement them, we specialise in a certain sector and we are not competing with them,” he said.
The industrial sector is a ‘real market’ with long-term returns, he said. “At the end of the day, it pays off, there is demand for it.”
