Abu Dhabi to set up 30 industrial clusters

Abu Dhabi: Abu Dhabi will set up 30 industrial clusters spread across more than 300 square kilometres of land in Abu Dhabi within the next seven years that will diversify the emirate's economy and attract investment, officials announced yesterday.

To put this in context, Jebel Ali Airport City the Dubai's largest project is about 140 square kilometres.

"The clusters including metal, chemical and petrochemicals, food processing industries, construction and building materials, wood and furniture, oil and gas services and automobiles, will transform Abu Dhabi into a world-class industrial, services, and logistics hub," said Carlos Charlie Borde, director of marketing and investment at the Higher Corporation for Specialised Economic Zones (HCSEZ).

"HCSEZ will be launching several more facilities that will focus on the development of more than 30 industrial clusters and develop more then 300 square kilometres of premium industrial estates."

The move, analysts say, will help the emirate to diversify its economy, develop local skills and create jobs for nationals.

"Abu Dhabi has the financial might to execute such a large venture and it is sitting in a large oil reserves. With industrialisation, the emirate can create downstream petrochemical industries that will produce value-added products," said Raju Menon, investment consultant for the free zones.

"With this, the emirate is moving ahead towards the right direction."

Borde did not divulge the exact location or investments involved in the clusters. He said details would be announced soon, adding HCSEZ will issue licences for the industries on behalf of the government.

Borde said that a business-friendly environment will be created for companies in specialised econ-omic zones with a new legislation being issued very soon.

"The law, among many other privileges, will allow 100 per cent foreign ownership of companies.

"These companies will also be allowed to market their products duty-free locally and in the member countries of the Gulf Cooperation Council," he said.

Borde also spoke about the emirate's two industrial cities ICAD I and ICAD II set up over 25 square kilometres in and around Mussaffah.

"Some 82 companies have started working in ICAD I and 40 major companies are setting up their operations in ICAD II

and have committed over Dh10 billion to date in investment.

"ICAD II, which was announced in December last year, has already been booked by 96 per cent. It will be operational in two years.

"ICAD II, which follows the success of its currently operational predecessor, the Dh10 billion ICAD I, home to over 160 major international manufacturing companies, will generate Dh20 million per day.

"A contract has been awarded to a major local group to construct civic facilities, including road networks, water gas and electricity supply.

"The two industrial cities will further consolidate Abu Dhabi's stature as a leading international industrial hub and showcase the emirate's investment and business-friendly environment," Borde said.