Abu Dhabi: Zones Corp, an entity owned by Abu Dhabi government, on Wednesday unveiled plans to develop an automotive city with an investment of Dh1 billion.
The new automotive hub named Rahayel City will be developed in an area spanning 6 million square meters with phase 1 development is expected to be around 3 million square meters, a top executive told Gulf News at Cityscape Abu Dhabi.
“Rahayel City will be the largest fully integrated automotive hub in the region. It will have full activities across the value chain for the automotive industry including accommodation for staff, workshops, showrooms and a training institute for mechanics and electricians to upgrade their skills,” said Saeed Eisa Al Khyeli, director general of Zones Corp.
Basic infrastructure of the project would be ready by June for investors to come and set up their businesses in Rahayel City, he added. The full project is expected to be completed in the first quarter of 2020.
The new hub will offer long-term lease of 50 years for automotive companies with an option to renew for another 50 years. “The new city is being designed to become a destination for people not just to fix their cars but also for entertainment with automotive theme activities,” he added.
Automotive companies including Sandstorm Automotive Factory, Top Speed Car Tuning, Jernas, MotorX, Monster Team and Princess Cars, specialising in vehicle manufacturing and tuning, service workshops and maintenance centers have entered into agreements with Zones Corp to set up their business at the new city, a press statement by Zones Corp said.
Zones Corp currently oversees 50 square kilometres of developed areas in Abu Dhabi city and Al Ain and has plans to develop new areas in Al Dhafra.
The organisation’s economic zones include 650 industrial facilities covering a wide range of economic and business sectors and 28 fully serviced labour cities built according to the international standards.
The Abu Dhabi based entity has an investment portfolio valued at over Dh70 billion, the statement added.
The development comes as Abu Dhabi focuses on boosting investment and diversify its economy away from oil as low oil prices hurts its economy in the last four years.
A stimulus package of Dh50 billion was announced last year to develop various industries in the emirate.