As part of its development strategy, 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, also known as Ta’ziz.
Ta’ziz is active in Alpha Dhabi’s core businesses of agriculture, energy, healthcare, pharmaceuticals, construction, heavy transport, and chemical industry sectors, and the investment complements the company’s “strategic diversification” across selected sectors, according to a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
“Ta’ziz and its activities in the UAE provide an outstanding investment opportunity for Alpha Dhabi Holding,” said Hamad Al Ameri, Alpha Dhabi’s managing director and CEO.
“We see our connection as a long-term contributor not just to the national economy, but also to Alpha Dhabi Holding, Abu Dhabi, and the UAE’s regional and global competitiveness.”
Alpha Dhabi is one of eight UAE-based investors that have agreed to buy up to a 20% share in a portfolio of projects worth Dh15 billion in Ta’ziz’s Industrial Chemicals Zone in Ruwais.
Local investors are joining Abu Dhabi National Oil Company, ADQ, and other worldwide strategic partners in acquiring interests. The agreement is also the first domestic public-private collaboration in Abu Dhabi’s downstream and petrochemicals sectors, according to a statement issued by Adnoc last week.
Other investors in the emirate’s downstream industry include Al Nasser Holdings, Arab Development Establishment, Buhairan Limited Company, Capital Investment, Mazrui International and Mazrui Energy Services, and Riverside Investments.
Ta’ziz is an industrial services and logistics firm that facilitates and supports the expansion of the Ruwais Industrial Complex while also meeting Abu Dhabi’s downstream, chemical, and petrochemical needs across all industrial sectors.
The Ta’ziz Industrial Chemical Zone projects are now in the design phase, with activities set to begin in 2025.
The chemicals sector is an important aspect of the UAE’s Operation 300bn, which intends to increase the country’s industrial sector’s contribution to GDP to Dh300 billion by 2031.
Alpha Dhabi said this week that it will invest Dh8 billion across multiple areas as part of its development strategy to increase growth.
According to a release, the business intends to engage in real estate, hotels, healthcare, petrochemicals, and “other potential industries” in the UAE and beyond.
“We think that a well managed investment… would help us fulfill our obligation to shareholders, increasing value by diversifying our portfolio,” Mr Al Ameri stated at the time.
Alpha Dhabi, which was formerly known as Trojan Holding and has a market value of Dh256.8 billion, has evolved into a regional conglomerate with holdings in construction, health care, hotels, 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, and oil and gas services sectors, as well as a 70% stake in Mawarid Holding Investment, which engages in Sharia-compliant financing and investing through Aafaq Islamic Finance.
Alpha Dhabi also has a 12% investment in Aldar, Abu Dhabi’s largest property developer, a 65.11 % share in National Marine Dredging Company, and a 40% stake in Response Plus Medical, which manages ambulance and home health services.