TA’ZIZ awards $2bn contracts for Al Ruwais chemicals infrastructure

The Abu Dhabi Chemicals Derivatives Company, TA’ZIZ, has awarded engineering, procurement, and construction (EPC) contracts worth more than $2 billion to establish a state-of-the-art chemicals infrastructure at the Al Ruwais Industrial City. The massive investment marks a significant step in transforming the region into a central hub for chemicals and low-carbon energy solutions, placing the United Arab Emirates in a strong position to meet increasing global demand for sustainable products.

In line with the UAE’s strategic objectives, the contracts aim to accelerate the country’s economic diversification and fortify its role as a global leader in the chemicals industry. The awarded projects encompass essential infrastructure developments, from establishing a dedicated chemicals port to building critical storage facilities and modernizing site infrastructure. The initiative further emphasizes the UAE’s commitment to innovation, economic diversification, and environmental sustainability.

Expanding Al Ruwais for a Global Role in Chemicals and Transition Fuels

The awarded contracts cover a range of critical projects aimed at building an integrated chemicals ecosystem. A key part of this plan involves the development of a dedicated chemicals port by the NMDC Group, which will facilitate the export of chemicals and low-carbon transition fuels. This strategic infrastructure will provide seamless access to both regional and global markets, enhancing the UAE’s standing in the global chemicals supply chain.

TA’ZIZ has partnered with Advario and Rotary Engineering–Abu Dhabi to construct an advanced chemicals terminal at Al Ruwais. This partnership aims to deliver high-capacity storage solutions equipped with tank-to-jetty and jetty-to-tank pipelines, alongside inter-site connections and expansive liquid product storage facilities. These storage facilities will play an essential role in managing the complex logistics of chemicals export, ensuring efficient transport of products to meet the growing market demand.

In addition, Al Geemi Contracting has been appointed to handle site-wide infrastructure developments at the sprawling 17-square-kilometer Al Ruwais complex. This comprehensive infrastructure will include internal roads, security fencing, and administrative buildings essential for efficient operations. Centralized utilities, such as power transmission, steam, and water systems, are also part of the planned developments, underscoring the UAE’s ambition to create a fully integrated, sustainable production ecosystem.

Targeting Production Milestones and New Chemical Products

TA’ZIZ’s Al Ruwais project is expected to reach significant production milestones by 2027, with a target output of 4.7 million tons per annum by 2028. The initial phase of production will focus on six core chemicals: caustic soda, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride, low-carbon ammonia, and methanol. Notably, these products represent new avenues for the UAE, which previously relied on imports for many of these essential chemicals. The local production of these materials is expected to foster advancements in construction, agriculture, and healthcare, enabling industries within the UAE to source vital resources domestically.

Expert Insights: An Investment in Innovation and Sustainability

Industry analysts have noted that the TA’ZIZ Al Ruwais initiative signals a bold commitment to innovation and environmental responsibility. Experts stress that TA’ZIZ’s investment in Al Ruwais is indicative of the UAE’s ambition to not only diversify its economy but to also position itself as a global leader in sustainable and low-carbon chemicals. They also emphasize that the strategic move aligns with Abu Dhabi National Oil Company’s (ADNOC) goal of securing a spot among the top five global chemicals players.

According to market experts, the development of an integrated chemicals hub in Al Ruwais reflects a critical understanding of the increasing global demand for low-carbon solutions. TA’ZIZ’s infrastructure projects offer a comprehensive response to this demand, positioning the UAE as a proactive player in the energy transition. As part of ADNOC’s In-Country Value (ICV) program, this investment is expected to generate significant economic benefits for the Al Dhafra region and contribute substantially to the UAE’s GDP.

TA’ZIZ’s Investment Signals Economic Transformation

TA’ZIZ’s $2 billion investment in Al Ruwais represents more than just infrastructure; it’s a statement of intent from the UAE to build a resilient and innovative industrial base. The planned chemicals ecosystem will reduce the country’s reliance on imports, generate new job opportunities, and stimulate local industries. With an eye toward sustainable and low-carbon chemicals, TA’ZIZ is setting a high benchmark for the future of the industry in the region.