Kizad can create competitively priced infrastructure solutions tailored to address the specific utilities and logistics needs of major manufacturing projects.
Low Utilities Cost
One of the major operating costs for industrial companies is utilities which is why Abu Dhabi offers gas, water and electrical power at some of the lowest rates in the world. Furthermore Kizad can create competitively priced infrastructure solutions tailored to address the specific utilities and logistics needs of major manufacturing projects.
Chart showing competitive pricing of Kizad's utilities
Vertically Integrated Clusters
In addition companies locating to Kizad will enjoy a number of advantages arising from the design of the Masterplan. As Kizad was a greenfield site its designers were able to incorporate a number of innovative features designed to create business and operational efficiencies for tenants. Foremost amongst these is the concept of vertically integrated clusters.
Vertically integrated clustering offers a number of important benefits. Each cluster is focused on a key primary industry, with a number of related midstream and downstream processes located close by. Other suppliers and service companies serving each stage of the value chain will also be encouraged to establish operations in the cluster. Value is created throughout the industry value chain as follows:
- Anchor tenants produce basic materials
- Nearby mid-stream producers take the basic materials as feedstock and produce value-added products
- Downstream producers also nearby in the cluster produce finished goods using the added value products
- Specialist companies providing services and goods to support the companies in the value chain are located close by.
Clustering per se is known to encourage productivity and profitable synergy between supplier and customer businesses. The gathering of collective expertise creates a business environment that fosters Research and Development and the development of skills and talent. Vertically integrated clustering is designed to also create economies of proximity by ensuring efficient supply lines and encouraging timely availability of components and process materials.
As an example the Aluminium Cluster is anchored by Emirates Aluminium (Emal), and will provide their feedstock to a number of users who will add value in the form of casting or forging processes. These in turn will supply tertiary companies with components for further finishing and incorporation into finished products that will then go to the warehousing and logistics businesses for distribution and export. The proximity the cluster brings allows the establishment of Kizad’s Hot Metal Road - a specially constructed roadway that enables the transport and delivery of aluminium in molten form, saving downstream manufacturers the considerable cost of re-melting ingots.
Kizad ‘s design includes industry clusters for Aluminium, Steel, Petrochemicals, Paper, Pharmaceuticals, Food, Trade and Logistics, Engineered Metal Products and more. It is expected that these clusters will attract suppliers of specialist industry products as well as supporting industries, further broadening the industry base.
Competitive Leasing Cost
These industries will find Kizad’s land costs very attractive. They have been extensively researched and benchmarked against regional industrial zones to be highly competitive.
Zero Income Tax Environment
Currently in Abu Dhabi individuals and most companies are not subject to tax on their income.
Furthermore at Kizad, foreign companies can opt for the ownership approach that best suits their business needs.
- For companies involved in industrial manufacturing activities, choosing a joint venture with a local company (taking up to 49% ownership) allows them to claim exemption from import duties on raw materials; Goods manufactured in this case will be exempt from customs duties when exported to most GCC countries.
- 100% foreign- owned companies can avoid duties on imported goods kept in bonded status in the Industrial Zone and re-exported from the UAE.
Taken together the cost benefits above, ensure that businesses at Kizad are well positioned to be competitive in their industries and to drive growth in Abu Dhabi for the long term