AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, signed a Dh2 billion ($545 million) long-term land lease agreement with Azizi Developments to set up new manufacturing and logistics units at Khalifa Economic Zones Abu Dhabi (Kezad).
As part of the deal, Azizi will build 12 factories in an area spanning nearly 440,000 square metres to help boost its production capacity and strengthen supply chain resilience, AD Ports said in a statement on Friday to the Abu Dhabi Securities Exchange, where its shares are traded.
Dubai-based Azizi is building a Dh6 billion tower called Burj Azizi, which is to stand at 725 metres tall to become the world's second-tallest tower. The company is also building other residential projects across Dubai.
“This agreement supports Abu Dhabi’s industrial expansion and strengthens the long-term partnership between Kezad and Azizi as they continue to invest in advanced production and supply chain capabilities,” said Abdullah Al Hameli, chief executive of economic cities and free zones at AD Ports Group.
The two sides signed a Dh1 billion, 50-year land lease agreement for the establishment of new manufacturing units at Kezad in an area covering 220,000 square metres last year. Kezad, between Abu Dhabi and Dubai, is rapidly expanding with companies setting up manufacturing units.
Last month, Indian companies Jindal Saw Group and Haldiram Group announced plans to invest about Dh1.2 billion to develop more than 514,000 square metres of manufacturing infrastructure at Kezad. It is also developing a commercial hub to attract more global investors to the emirate, Kezad said in June.
The Kezad Business District in Al Mamourah is to be developed as an integrated mixed-use commercial space that includes offices, retail, residential, lodging, education, professional training and leisure components, it said at the time.
