Abu Dhabi’s mammoth new industrial zone is wooing investors from Asia to set up shop and help the emirate diversify its economy away from oil.

Khalifa Industrial Zone Abu Dhabi at Taweelah, midway between Abu Dhabi and Dubai, spans an area of 421 square kilometers and is the largest industrial area in the UAE. The USD 7.2 billion Phase I development is set to be operational before the end of 2012 with other phases to follow amid plans to create industrial clusters around a new port.

In the meantime, top management has been busy marketing the project in Asia and lining up collaborations with Asian banks to make future investments easier. Earlier this year, Kizad held roadshows launching in three Asian economic giants India, China and South Korea as well as in Germany.

Mr Khaled Salmeen executive VP of industrial zones at Abu Dhabi Ports Company said that “The response was positive and this is also about attracting foreign direct investment. Kizad plans to open offices in these countries starting soon with India. The company has so far signed agreements with Industrial & Commercial Bank of China, Citibank, HSBC, and India’s Bank of Baroda.”

Mr Salmeen said that there is a need for industry to contribute to the non oil GDP we are confident Kizad will contribute up to 15% of Abu Dhabi’s non oil GDP by 2030. Emirates Aluminum is the first and anchor tenant. Some 30 companies have signed agreements to set up base at Kizad and nearly 100 more are awaiting approvals. The agreements with private and government firms relate to projects in aluminium, steel, glass and logistics.

He said that with about 60% to 80% of goods manufactured in the industrial zone to be exported, investors can also seek finance from export credit agencies that are lending long term at low rates.

(Sourced from Reuters)