UAE’s first world-scale methanol plant secures $2 billion financing

Dubai: TA’ZIZ has secured $2 billion in financing for the UAE’s first world-scale methanol plant, moving one of Abu Dhabi’s major industrial projects closer to production and strengthening the country’s push to build more chemicals and manufacturing capacity at home.

The financing was announced at Make it in the Emirates 2026 and covers the TA’ZIZ Methanol Company, a joint venture between TA’ZIZ and Proman. The plant is being developed in Al Ruwais Industrial City and is targeted for completion in 2028.

The transaction was significantly oversubscribed, signalling strong interest from global lenders in Abu Dhabi’s industrial growth strategy and the Ruwais chemicals platform.

Financing backed by 11 banks

The package includes a five-year $1.8 billion conventional syndicated loan and a $200 million Islamic facility. TA’ZIZ said both facilities were priced in line with international benchmarks, reflecting the project’s credit profile and execution plan.

Eleven regional, European and Asian financial institutions participated in the financing. Sumitomo Mitsui Banking Corporation acted as exclusive financial adviser, while Abu Dhabi Commercial Bank and First Abu Dhabi Bank served as bookrunners and mandated lead arrangers.

ADCB and FAB designed the loan structure, led the fundraising, took the largest commitments and coordinated the syndicate.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, said the financing marked a major step for the company and Abu Dhabi’s industrial expansion plans.

“This landmark financing marks a defining moment for TA’ZIZ and for Abu Dhabi’s next phase of industrial growth. The strong global demand for this transaction reflects our disciplined execution, the strength of our partnerships, and the long-term fundamentals of the Ruwais industrial ecosystem,” he said.

Methanol project moves into delivery phase

The financing close follows several earlier milestones for the methanol project, including Final Investment Decisions by ADNOC, TA’ZIZ and Proman, the award of the engineering, procurement and construction contract to Samsung E&A Co. Ltd., and the establishment of the TA’ZIZ Methanol Company.

Construction is already progressing, with completion targeted for 2028. Once operational, the plant is expected to support the development of a domestic chemicals value chain and create more scope for local manufacturing in the UAE.

Methanol is used across a wide range of industrial applications, including chemicals, plastics, construction materials and energy-related uses. The project is also being positioned within Abu Dhabi’s wider plan to expand downstream industrial production and capture more value from its energy and chemicals base.