"Kizad" 792 investment agreements were signed, under which 5 million square meters were allocated
ABU DHABI, 1st May / WAM / Abdullah Al Hameli, CEO of the Economic Cities and Free Zones Sector at the Abu Dhabi Ports Group, confirmed the growth in demand for integrated industrial and commercial centers in the Emirate of Abu Dhabi, as the Kizad Group signed 792 agreements last year, according to which areas of land were allocated. Its area reached five million square meters (5 square kilometers), which is a strong indicator of the role of the economic cities and free zones sector in supporting the economic development process in the emirate, pushing economic diversification efforts and strengthening the non-oil economy in line with the objectives of the Abu Dhabi Economic Vision.
Al Hameli said, in statements to the Emirates News Agency, WAM, that the Kizad Group continues to expand, adding new areas of land and warehouses, developing infrastructure, and expanding service offerings to accommodate and meet the needs of a wide spectrum of industries and companies in various sectors, with the aim of diversifying its sources of revenues and developing a thriving complex of… Companies and business areas within an integrated business system that includes more than 2,000 companies in 12 economic regions.
He pointed out that this wide network of dealers enhances cooperation and integration between sectors and stimulates innovation, within a strong industrial system, which achieves the goals of economic diversification and industrial development in Abu Dhabi.
The CEO of the Economic Cities and Free Zones Sector added that among the achievements achieved during the past year was also the contracting with a number of major investors such as “Bran Foods”, “Al Ghurair Foods” and “Al Jazeera Steel” to develop new production facilities in Kizad, which will be able to During which it distributes its products in the Arabian Gulf markets and local and regional markets, as well as exporting to the Middle East and North Africa region. In addition, we succeeded in increasing the occupancy rate of warehouses after doubling their capacity compared to 2022 through the development of new industrial complexes such as the Abu Dhabi Food Center, The International Vehicle Center Abu Dhabi and the Metals Complex.
Regarding the size of the contribution of the economic cities and free zones sector to the growth of the group’s revenues and the impact of this growth in supporting the economic development process in the Emirate of Abu Dhabi, Al Hamli said that the economic cities and free zones sector, especially the Kizad Group, played a pivotal role in the remarkable growth of the Abu Dhabi Ports Group’s revenues during the year. 2023, as the sector recorded a 7 percent increase in revenues to reach 1.78 billion dirhams, representing 18 percent of Abu Dhabi Ports Group’s total revenues during the year.
He added that this growth was driven by an increase in the rental of land, warehouses, and facilities, as the sector succeeded in leasing 67 square kilometers of land belonging to the Kizad Group, with a total area of 550 square kilometers, and it also achieved an increase in the occupancy rates of warehouses and residential units belonging to “Kizad Complexes” that reached 87 percent and 60 percent, respectively, which reflects the sector’s success in diversifying its investment portfolio into a group of strategic economic sectors.
He explained that the growth in revenues of the economic cities and free zones sector in 2023 was mainly driven by the significant increase in lease contracts for land, warehouses and facilities, as well as the remarkable increase in the number of employee housing facilities that we own and manage after merging “Kizad Complexes” with “Collective Housing” to form a larger An integrated company specializing in employee housing in Abu Dhabi.
He added that the sector’s revenues amounted to 1.78 billion dirhams, achieving an increase of 7 percent over last year. This outstanding financial performance is consistent with our strategic goals of diversifying the service offerings provided by the Kizad Group and attracting more investments in industrial sectors to Abu Dhabi.
He stated that this growth is due to the continuous development and investment in infrastructure development projects, the most important of which is the basic infrastructure development project for the Abu Dhabi Food Center and the International Vehicle Center – Abu Dhabi, with investments amounting to 330 million dirhams, in addition to investing 621 million dirhams to increase the capacity of ready-made industrial and logistical facilities.
He said: “Our success in achieving positive growth rates confirms that we are on the right track towards achieving our strategic goals and consolidating our position as a rapidly growing regional economic center.”
Al Hameli added that the economic cities and free zones sector has achieved notable achievements in developing the main sectors targeted within Abu Dhabi’s industrial strategy, most notably the automotive, food and agricultural technology sectors.
He pointed out that in the automotive sector, we have begun developing the International Vehicle Center – Abu Dhabi on an area of 3.3 square kilometers, and it is scheduled to begin operating by the end of 2025, pointing out that the center provides an integrated infrastructure for car trade, and will represent a major qualitative leap in the advancement of the car trade and distribution sector. in the region and consolidate Abu Dhabi’s position as a leading regional center in the automotive sector.
He added that, at the level of the food and agricultural technology sector, we have begun developing one of the largest technology-supported agricultural centers in the region on an area of 2 square kilometers in the Al Ain region. The center will include protected agricultural homes on an area of 50,000 square meters for growing indoor plants, in addition to developing a facility for dairy products. For Al Rawabi Company at a cost of 650 million dirhams.
He said: “These giant development projects reflect our firm commitment to encouraging innovation in the food and agricultural technology sector, and emphasize our role in promoting sustainable food production, in line with Abu Dhabi’s goals to develop the industrial sector system, and employ modern technologies to achieve self-sufficiency in agricultural crops, and improve yields.” economic growth of the sector, and increasing investments in it.”
Regarding the contribution of the economic cities and free zones sector’s investments in infrastructure and modern technology for the year 2023 in laying the foundations for future growth and operational excellence, Al Hamli explained: “In 2023, we have allocated large investments to develop infrastructure and introduce modern technologies to lay the foundation for future growth and operational excellence. The directives were Capital expenditures for the economic cities and free zones sector, amounting to 1.1 billion dirhams for the past year, to develop large strategic projects such as the Abu Dhabi Food Center, the Abu Dhabi International Vehicle Center, and the development of industrial and logistical facilities. We have also begun work on developing the gas distribution network and increasing the capacity of warehouses to more than 1.35 million meters Square by the end of 2025 as part of an ambitious plan to meet customers’ future needs. This infrastructure development will enhance operational efficiency and ensure our ability to meet future needs, sustain growth, and continue achieving success.
Regarding the approach adopted by the economic cities and free zones sector towards sustainable development and preserving the environment in its future operations and projects, he added: “All our operations and future projects aim to promote sustainable development, preserve environmental systems and natural resources, and ensure their sustainability, as all our attention is currently focused on developing solutions.” Green energy and the implementation of environmentally friendly practices, we are studying the feasibility of using solar energy in our ready-made facilities, and we provide our customers with clean energy solutions through green energy certificates from the Emirates Water and Electricity Company.”
He continued: “Thanks to our efforts in supporting environmental projects, we have succeeded in attracting large investments in technology-supported agricultural centers and initiatives within the food and agricultural technology sector. For example, the ‘Zero’ project is the first of many agricultural projects within a controlled environment. It is scheduled to be established in the Agricultural Technology Complex in the Kizad Al Ain area with the aim of localizing indoor farming techniques locally, as well as exploring and enhancing the prospects for agriculture in the desert climate of the UAE. The Dutch company “Save Haven Solutions”, which specializes in providing smart agricultural solutions appropriate to climate conditions, has also begun developing A project to establish high-tech greenhouses in the advanced agricultural technology holding complex in Kizad.”
Regarding the role of the economic cities and free zones sector as part of an integrated system that includes an economic zone linked to a sea port through a developed port, and the role of Khalifa Port in providing a distinctive work environment for customers in Kizad… Al Hameli said that the sector provides companies operating within Kizad with a unique work environment, advantages and connectivity capabilities. Exceptional through Khalifa Port, which includes container terminals designated for three of the five largest shipping companies in the world, which are “Cosco Shipping Ports Limited”, “MSC” and “CMA CMG”.
He pointed out that the presence of the main shipping companies in Khalifa Port, in addition to the supporting services from the Abu Dhabi Ports Group, and the direct connection to international maritime transport routes provides customers in Kizad with faster and more reliable supply chains, and this enhances the modern port facilities and advanced loading and unloading equipment, which ensures efficient movement. the goods.
Al Hameli added that Kizad’s strategic location and the integration between the work of the port and the economic zone facilitate the transportation of goods from the port to warehouses and factories, which enhances the logistical capabilities of companies within Kizad and ensures the efficiency and smoothness of logistics operations.
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