Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, is investing Dh1 billion ($272.3 million) in Abu Dhabi Chemicals Derivatives Company, known as Ta’ziz, as part of its expansion drive.
The investment complements the company’s “strategic diversification” across selected sectors, as Ta’ziz is active in Alpha Dhabi’s core businesses of agriculture, energy, healthcare, pharmaceuticals, construction and heavy transport and chemical industry sectors, it said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
“Ta’ziz and its operations in the UAE represent an excellent investment opportunity for Alpha Dhabi Holding,” said Hamad Al Ameri, managing director and chief executive of Alpha Dhabi.
“We foresee our relationship developing into a long-term contributor not only to the nation’s economy, but to the regional and global competitiveness of Alpha Dhabi Holding, Abu Dhabi and the UAE.”
Alpha Dhabi is among eight UAE-based investors that signed an agreement with Ta’ziz to take up to a 20 per cent stake in a portfolio of projects worth Dh15bn in its Industrial Chemicals Zone in Ruwais.
The local investors are taking up the stakes alongside Abu Dhabi National Oil Company, ADQ, and other global strategic partners. The deal also marks the first domestic public-private partnership in Abu Dhabi’s downstream and petrochemicals sector, Adnoc said in a statement last week.
Al Dhafra Co-operative Society, Al Nasser Holdings, Arab Development Establishment, Buhairan Limited Company, Capital Investment, Mazrui International and Mazrui Energy Services and Riverside Investments are the other investors investing in the emirate’s downstream sector.
Ta’ziz is an industrial services and logistics company that enables and supports growth of the Ruwais Industrial Complex and fulfils Abu Dhabi’s downstream, chemical and petrochemical requirements across industrial sectors.
The Ta'ziz Industrial Chemical Zone projects are currently in the design phase and are expected to start operations in 2025.
The chemicals sector is an integral part of the UAE's Operation 300bn, which aims to raise the contribution of the country's industrial sector to its gross domestic product to Dh300bn by 2031.
Last week, Alpha Dhabi said it will invest Dh8bn across various sectors as part of its expansion strategy to boost growth.
The company is targeting investments in real estate, hospitality, healthcare, petrochemicals and “other promising sectors” in the UAE and outside the country, it said in a statement.
“We believe that a carefully administered investment ... will help fulfil our responsibility to shareholders, adding value by expanding our diverse portfolio,” Mr Al Ameri said at the time.
Alpha Dhabi, which has a market value of Dh256.8bn and was previously known as Trojan Holding, has grown into a regional conglomerate with interests in construction, health care, hospitality and industry after completing a series of acquisitions this year.
Earlier this year, it acquired the entire share capital of Murban, a company with investments in the hospitality, facility management services and oil and gas services sectors and a 70 per cent stake in Mawarid Holding Investment, which is engaged in Sharia-compliant financing and investing activities through Aafaq Islamic Finance.
Alpha Dhabi also holds a 12 per cent stake in Aldar, Abu Dhabi’s biggest property developer, a 65.11 per cent stake in National Marine Dredging Company and 40 per cent of Response Plus Medical, which is involved in management of ambulance services and home health services.