Abu Dhabi’s new Industrial Free Zone

The Khalifa Industrial Zone Abu Dhabi (Kizad) will help attract foreign direct investment to Abu Dhabi and facilitate the building of new industries that will help diversify the economy of the emirate and the UAE as a whole.The industrial zone, located between Abu Dhabi and Dubai, will have an advanced seaport that is scheduled to be operational by the fourth quarter of 2012, to help ensure easy access to global markets. Kizad will also have road and rail links to the rest of the world. By 2030, Kizad is expected to contribute around 15 per cent of Abu Dhabi’s non-oil gross domestic product and between 60 per cent and 80 per cent of its manufactured goods will be exported, according to official projections. These are ambitious targets, but they can be achieved if the free zone succeeds in its aim of achieving low operational costs for companies and becoming an easy place to do business. The opening of the free zone to investors and potential tenants is also an important milestone in Abu Dhabi Economic Vision 2030, which aims to ensure the growth and development of its economy. The industries identified as important to Kizad range from heavy machinery to trade and logistics, technology and small businesses. This variety is essential to ensuring the growing diversity of the Abu Dhabi economy.

The offer of 100 per cent foreign ownership of companies in the free zone that contribute to Abu Dhabi’s strategic economic objectives will help attract the necessary investment. Foreigners tend to be reluctant to put their money into projects in which they cannot reap the full benefit of their investment. The more open the economy, and the clearer its commitment to good governance and the protection of property rights, the more it will attract foreign direct investment.

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