Abu Dhabi's Ta'ziz Secures $1.39 Billion for Key Ruwais Industrial Projects

Abu Dhabi's Ta'ziz has successfully raised $1.39 billion to fund two significant projects in Ruwais, with both financial transactions exceeding their targets, underscoring the emirate's ongoing industrial expansion strategy. The terminal project garnered over $928 million, which included $225 million in Islamic financing. Concurrently, more than $460 million was raised for the ammonia project, as announced by the company on Wednesday.

The terminal project, a collaborative venture between Adnoc and Advario Star Energy, is designed to function as the primary logistics hub for the Ta'ziz Industrial Chemicals Zone. It will offer substantial liquid chemical storage capacity and facilitate exports to both regional and international markets. In parallel, the ammonia project, a joint undertaking involving Ta'ziz, Fertiglobe, Mitsui, and GS Energy, is focused on developing one of the region's largest ammonia production facilities, capable of producing one million tonnes per annum.

Established in 2020 as a joint venture between Adnoc and Abu Dhabi's investment and holding company ADQ, Ta'ziz operates as a diversified company encompassing manufacturing, industrial services, logistics, and utilities, all aimed at supporting chemical production and the development of transition fuels. This initiative is crucial for advancing Adnoc's ambition to become a top-three global player in the chemicals sector and is integral to Abu Dhabi’s broader industrial growth strategy.

Upon the completion of its initial phase by the end of 2028, the Ta'ziz industrial zone is projected to produce 4.7 million tonnes per annum (mtpa) of chemicals, including low-carbon ammonia, methanol, and PVC. These recent financial achievements follow a $2 billion financing deal that Ta'ziz secured in April for its methanol project.

“Securing more than $3.39 billion, including the methanol financing announced in April, demonstrates the strong confidence that international investors and lenders have in Ta'ziz, our partners, and Abu Dhabi’s long-term industrial vision,” stated Mashal Al Kindi, Ta'ziz chief executive and chairman of both projects. “These projects will play a critical role in establishing a globally competitive chemicals and industrial ecosystem in Ruwais while supporting the UAE’s economic diversification objectives.”

Ta'ziz confirmed that both the ammonia and terminal projects are making substantial progress. The engineering, procurement, and construction (EPC) works for the ammonia project, managed by Tecnimont, are over 90 percent complete. Meanwhile, the EPC works for the terminal project, awarded to Rotary Engineering, are approximately 70 percent complete.

“The 1 mtpa ammonia facility is well advanced, and this financing underpins the final phase of delivery,” commented Ahmed El Hoshy, chief executive of Fertiglobe. Japan's MUFG served as the financial advisor for the terminal financing, bringing nine regional and international banks into a long-term non-recourse deal. Sumitomo Mitsui Banking Corporation acted as the exclusive financial advisor for the ammonia financing, with seven banks from China, Kuwait, Spain, and Singapore participating in a six-year term facility.

The initial phase of the Ta'ziz ecosystem is anticipated to contribute $50 billion to the UAE economy, generating 20,000 construction jobs and 6,000 operational roles, according to the company. In May, Ta'ziz also entered into an agreement with investment conglomerate Alpha Dhabi, targeting $10 billion in capital investment for its new industrial chemicals ecosystem.