Khalifa Economic Zones Abu Dhabi (KEZAD) Announces Major Manufacturing and Solar Investments Showcasing its Appeal

Recent manufacturing and solar investments in KEZAD highlight the zone’s appeal to industrial investors, underscoring its strategic advantages and supportive ecosystem.

Khalifa Economic Zones Abu Dhabi (KEZAD) Group, the largest operator of integrated and purpose-built economic zones in the UAE and a subsidiary of AD Ports, has secured two significant long-term investments aimed at bolstering the manufacturing and renewable energy sectors in the region.

They reflect KEZAD’s ongoing efforts to foster industrial development while advancing the UAE’s ambitions in sustainability and economic diversification.

Apex Engineering Industries to establish manufacturing facility

In a move set to enhance the UAE’s industrial landscape, KEZAD Group has signed a 50-year land lease agreement with Apex Engineering Industries, a UAE-based company. The agreement will see the development of a state-of-the-art manufacturing facility in KEZAD Area A – Al Ma’mourah, spanning 40,000 square meters. This facility represents a substantial Dhs90 million investment and is designed to produce industrial parts, components, machinery, and equipment for key sectors such as oil and gas, locomotives, and defense.

Mohamed Al Khadar Al Ahmed, CEO of KEZAD Group, emphasized the project’s role in driving sustained economic growth and aligning with the UAE’s strategic vision of economic diversification. The facility will also include specialized material treatment processes aimed at extending the lifecycle of metal wear parts, further strengthening the UAE’s manufacturing capabilities.

Abundance Solar Panel Industries to build solar manufacturing plant

In parallel with the manufacturing investment, KEZAD Group has also signed a 50-year land lease agreement with Abundance Solar Panel Industries, another UAE-based company, to establish a 27,000-square-meter solar panel manufacturing plant. With a Dhs55 million investment, this facility will focus on the production of solar panels and integrated photovoltaic modules, positioning KEZAD as a key player in the UAE’s renewable energy sector.

The plant, which will incorporate cutting-edge solar technology, is part of a broader effort to create a sustainable ecosystem within KEZAD.

Why set up your UAE manufacturing business in KEZAD zones

Khalifa Economic Zones Abu Dhabi or KEZAD benefits from its prime location between Abu Dhabi and Dubai that connects businesses to approximately 75 percent of the UAE’s population within a 90-minute drive. KEZAD’s world-class transportation infrastructure, including access to two major global ports, five international airports, multi-lane express highways, and upcoming rail networks, ensures excellent connectivity with global, regional, and local markets.

Land serviced plots: KEZAD offers meticulously planned serviced land plots, catering to industries of any scale. Businesses can secure long-term leases, allowing them to develop facilities tailored to their specific needs within a strategically designed economic zone. This flexibility ensures that companies can expand seamlessly as they grow.

Location: Located strategically between Abu Dhabi and Dubai, KEZAD offers fast access to markets, low setup and operational costs, and the flexibility to scale operations as needed. The zone’s efficient investor business support services further simplify the setup process, making KEZAD an ideal choice for businesses looking to establish a strong presence in the region.

Logistics: With access to major global ports, international airports, highways, and upcoming rail networks, businesses can quickly and efficiently reach key markets. The flexible company formation process also means that businesses can start operations faster, gaining a competitive edge in their industry. By offering an environment conducive to growth, KEZAD enables significant cost savings, making it easier for companies to manage operational expenses and maximize profitability.

Community welfare and residential areas: With residential areas, social spaces, and leisure facilities within a 10-minute drive, KEZAD ensures that employees have access to a comfortable and convenient lifestyle. This focus on community helps attract and retain talent, contributing to business success.

Setting up: The Free Zone and Domestic Economic Zone facilities allow businesses to customize their lease arrangements, enabling them to expand their operations as needed. This adaptability ensures that companies can grow within a supportive environment.

• Free zone advantages: KEZAD’s Free Zone jurisdiction offers several advantages, including 100 percent foreign ownership, 0 percent customs duty, no restrictions on capital and profit repatriation, and VAT exemption. The Free Zone is ideal for wholesale distributors, re-exporters, warehousing activities, service providers, and manufacturers targeting markets outside the MENA region. Sales in local market facilitated through distributors and/or local agents or by utilizing a dual license.
• Domestic economic zone (Mainland business set up) advantages: For companies targeting the UAE and GCC markets, KEZAD’s Domestic Economic Zone provides direct market access with 100 percent foreign ownership in over 1,100 activities. There is easy repatriation of profits and capital and no restrictions on domestic sales. Standard VAT rate is applicable in these zones. Goods produced here can be certified “MADE IN UAE,” granting them duty-free status within the GCC and very low duty structure in GAFTA countries for National Industrial License Holders. (The 17 states that are members of the Greater Arab Free Trade Area or GAFTA are: Algeria, Bahrain, Egypt, Iraq, Kuwait, Lebanon, Libya, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen.)
• Zonal infrastructure and support ecosystem: Manufacturing and industrial clients benefit from specially constructed hot metal roadway that enables the delivery of molten aluminum to the factory for downstream conversion operations. An eight-lane highway enables transportation from large industrial plant sections directly to the Khalifa Port. Utility corridors provide power, gas, potable water, telecom, sewage services, and special utilities like industrial water and feedstock. KEZAD hosts centralized sewage treatment facilities for efficient waste management, reducing investor costs in this area. Internal road networks provide direct access to the Khalifa Port and major commercial zones in the UAE and GCC countries through connection to the main highways. This road infrastructure is also designed to facilitate connectivity with upcoming rail networks through dedicated rail corridors. Businesses can anticipate rail freight facilities when planning future logistics. KEZAD hosts advanced laboratories offering testing and certification. KEZAD Group also hosts supporting industry players such as raw materials suppliers, packaging solutions firms, and printings services within its zones.

Summary

KEZAD zones can accommodate businesses of any scale due to its range of facilities and sophisticated industrial infrastructure. The two major investments in new manufacturing and solar facilities showcase KEZAD’s strategic importance in the region and its contribution to the broader economic goals of Abu Dhabi and the UAE.

• Previous Article Working Capital Management in the Middle East: Trends and Strategies
• Next Article Resolving Tax Disputes in the UAE – A Brief Guide for Companies