Abu Dhabi's production mega-projects

Abu Dhabi

Five mega-projects worth a total of US$54 billion are underway with the aim of transforming the emirate's production infrastructure.

The projects were announced by Dr Mohammed Abdul Rahim of Abu Dhabi's Chamber of Commerce and Industry, who unveiled them to the press during the 'Reality and Prospects of Industrial Sector of Abu Dhabi' seminar.

The fives projects are;

Emirates Aluminium (Emal), Abu Dhabi Polymers, Mubadala and Globalfoundries computer chip plant, Emirates Nuclear Energy Corporation and Strata composites aero structures.

What these five plants and facilities will do is diversify the emirate's revenues which has been dominated by oil and gas exports over the years. By having more industrial facilities, Abu Dhabi is hoping to increase foreign investment which has been a problem over the years.

This has been mainly due to the high prices of industrial land and cost of diesel, electricity and water, in comparison with other countries such as Saudi Arabia, making things difficult at times.

These five projects will hopefully change that; Emirates Aluminium's plant is to cost approximately US$5 billion while the Strata composites aero structures plant will cost US$3 billion and will be based in Al Ain. The other plants have been costed accordingly; Abu Dhabi Polymers $3.5 billion, Emirates Nuclear Energy Corporation project US$18.5 billion and the Mubadala and Globalfoundries computer chip plant will cost US$9 billion.

Financing

Majid Al Owais, Director of the Industrial Institutions Development and Support Department at the Ministry of Economy, said the UAE's first industrial mortgage law has been finalised and will be enforced next year.

The law will regulate loans from banks for industrial projects and the guarantees that should be secured by the plants, especially the machinery and equipment, to ensure banks' rights. Currently, any loans given are not massive ensuring a short repayment period.

Al Owais said the ministry had finalised the new industry draft law, and it will be enforced in the following months.

Over the past decade, Abu Dhabi has set up five industrial cities.

Relevant articles:

Abu Dhabi's 'sustained growth' plans | Abu Dhabi - top GCC infrastructure spender | Abu Dhabi's $2bn power need

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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