TA’ZIZ Finalizes $28.5 Billion Chemical Contracts to Accelerate UAE Industrial Growth

During the Make it in the Emirates forum, TA’ZIZ confirmed it has executed long-term contracts totaling $28.5 billion (AED104.6 billion), encompassing offtake, feedstock, and product sales related to its expansive chemicals portfolio.

These agreements include vital products such as methanol, polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM), caustic soda, salt, and natural gas. The contracts, spanning five to 25 years, promise consistent global demand alongside a reliable supply of local raw materials.

This initiative positions the UAE firmly within the realm of extensive chemical manufacturing and furthers the establishment of a self-sufficient domestic chemicals ecosystem.

Key partnerships encompass alliances with ADNOC and Proman for methanol sales and Emirates Global Aluminium (EGA) for caustic soda, along with collaborations with global entities such as Mitsubishi Corporation, Mitsui & Co., Sanmar Group, Tricon Energy, and Vinmar International regarding various chemical products.

Mashal Saoud Al-Kindi, CEO of TA’ZIZ, remarked on the significance of these agreements as a pivotal advancement in the UAE’s industrial landscape. He pointed out that securing demand and feedstock will bolster large-scale production, fortify supply chains, and foster long-lasting economic resilience and job opportunities.

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

Moreover, ADNOC Gas has entered a 25-year agreement, exceeding $5 billion (AED18.4 billion), to deliver natural gas to the TA’ZIZ methanol initiative.

Furthermore, a 20-year salt supply contract with Sama Salt will bolster operations at the PVC facility.

These agreements aim to strengthen local supply chains by leveraging domestic assets and enhancing the industrial self-sufficiency of the UAE.

Upon completion in 2028, the TA’ZIZ Industrial Chemicals Zone is anticipated to yield 4.7 million tonnes of chemicals annually, providing a substantial uplift to the nation's industrial sector.