TA’ZIZ Secures $28.5 Billion in Chemical Agreements to Elevate UAE Industry

Post by : Bianca Suleiman

During the Make it in the Emirates forum, TA’ZIZ has confirmed the signing of substantial long-term agreements totaling $28.5 billion (AED104.6 billion). These agreements encompass offtake, feedstock, and product sales across an expanding chemical portfolio.

The contracts cover essential products such as methanol, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), caustic soda, salt, and natural gas. With terms extending from five to 25 years, the agreements guarantee stable global demand and consistent local supply of raw materials.

This initiative further solidifies the UAE’s role as a leader in large-scale chemical production while fostering the development of a self-sufficient chemicals ecosystem.

Strategic collaborations include partnerships with ADNOC and Proman for methanol distribution, Emirates Global Aluminium (EGA) for caustic soda, along with global players such as Mitsubishi Corporation, Mitsui & Co., Sanmar Group, Tricon Energy, and Vinmar International for a range of chemical products.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, remarked that these agreements represent a pivotal advancement in UAE's industrial ambitions. By ensuring both demand and feedstock security, they aim to realize large-scale production, enhance supply chain resilience, and foster long-term job creation.

A notable achievement is a supply agreement with EGA for about 200,000 dry metric tons of caustic soda annually, positioning TA’ZIZ as the primary domestic supplier for EGA’s Al Taweelah alumina refinery, located in the Khalifa Economic Zones of Abu Dhabi (KEZAD).

Additionally, ADNOC Gas has executed a 25-year contract, valued at over $5 billion (AED18.4 billion), for the provision of natural gas to the TA’ZIZ methanol initiative.

TA’ZIZ has also entered into a 20-year agreement with Sama Salt for salt supply, aiding activities at its PVC facility.

These agreements are anticipated to bolster local supply chains through the utilization of domestic resources, thereby enhancing industrial self-sufficiency within the UAE.

Once completed in 2028, the TA’ZIZ Industrial Chemicals Zone aims to produce 4.7 million tonnes of chemicals annually, representing a significant advancement for the nation’s industrial landscape.

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