UAE lines up $10 billion chemicals push to cut import dependence

Dubai: TA’ZIZ and Alpha Dhabi Holding have signed a strategic collaboration agreement for about $10 billion in planned chemicals investment in Abu Dhabi, in a move aimed at expanding local manufacturing and reducing reliance on imported industrial materials.

The agreement targets new industrial chemicals production within the TA’ZIZ ecosystem in Al Ruwais Industrial City, in the Al Dhafra region of Abu Dhabi. The collaboration is being advanced through a joint feasibility and market study, with final investment decisions and regulatory approvals still required.

The agreement was announced at the Make it in the Emirates platform on Wednesday, placing one of Abu Dhabi’s largest planned chemicals investments within the UAE’s broader industrial strategy.

Up to 14 chemicals planned

The partnership could produce up to 14 new chemicals and add around 2.2 million tonnes per annum of extra capacity to the TA’ZIZ industrial chemicals ecosystem.

The proposed products include styrene and polystyrenes, acrylic acid and derivatives, polyols, MDI, epoxy resins and linear alpha-olefins. These materials are used across construction, automotive, packaging, consumer goods, infrastructure and advanced manufacturing.

The planned production is anchored in domestic demand, with the companies saying the chemicals could substitute key products currently imported into the UAE. That gives the agreement strategic weight at a time when countries are placing greater focus on local supply chains, industrial resilience and advanced manufacturing capacity.

“This strategic collaboration with Alpha Dhabi offers significant potential to expand TA’ZIZ’s mission to drive industrial growth, enable import substitution and create new economic opportunities in the UAE," said Mashal Saoud Al-Kindi, CEO of TA’ZIZ. "We look forward to working with our partners to swiftly progress the joint study and unlock the industrial and economic potential from the new chemical products.”

The chemicals would be integrated within the TA’ZIZ and wider ADNOC ecosystems, using existing synergies in feedstock sourcing, utilities, infrastructure and facilities integration. That model is intended to improve capital efficiency and competitiveness while giving local manufacturers access to inputs that are critical to several downstream industries.

“Our partnership with TA’ZIZ reflects Alpha Dhabi’s commitment to investing in strategic, future-focused industrial platforms that support the UAE’s economic transformation," said Engineer Hamad Al Ameri, Managing Director and Group Chief Executive Officer of Alpha Dhabi Holding. "The proposed chemicals derivatives will strengthen domestic manufacturing, unlock export opportunities and create sustainable long-term value.”