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【United Arab 】Saif Al Khaili Group Invests AED 280 Million in Khalifa Industrial Zone for First UAE Caustic Soda Plant

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Editor's note

This investment signals a major shift for regional caustic soda buyers, as the UAE’s first domestic plant aims to replace imports. Sourcing opportunities may emerge from Khalifa Port-linked markets, but buyers should watch for supply-chain risks tied to construction timelines and regulatory approvals under the 50-year agreement.

Saif Al Khaili Group, owned by Emirati businessman Saif Al Khaili, has announced investments worth AED 280 million in Abu Dhabi's Khalifa Industrial Zone (KIZAD). The move includes two land lease agreements to build a caustic soda and chlorine derivatives plant and a food production facility, marking a significant step for local chemical manufacturing and import substitution.

Project overview

The group signed a 50-year musataha agreement for over 1 million square feet in KIZAD's Multi-Commodity Park to establish the Emirates Chemical Industries plant. This facility will produce caustic soda and chlorine derivatives, essential inputs for aluminum, petroleum, steel, and other chemical industries. Expected annual production capacity is approximately 400,000 tonnes.

Second agreement

A separate 30-year agreement grants the group 284,435 square feet in the Food Industrial Park for a ready-meal factory with a daily capacity of 70,000 meals. The facility will also house the group's headquarters.

Strategic importance for UAE supply chain

KIZAD CEO Engineer Khaled Salmeen noted that the UAE currently imports all its caustic soda requirements. The new plant will be the first domestic source, helping meet local demand and reduce import dependence in line with Abu Dhabi Economic Vision 2030.

What buyers should watch

Loay Qassem, Vice Chairman of Saif Al Khaili Group, highlighted that proximity to Khalifa Port will enable access to new markets beyond the UAE. Overseas buyers of caustic soda and chlorine derivatives should monitor this development as it may shift regional supply dynamics and create new sourcing opportunities from the Middle East.

Company background

Founded in 1999, Saif Al Khaili Group has diversified into hospitality, IT, healthcare, oilfield services, logistics, and security equipment. The KIZAD investments mark its entry into food production and chemical manufacturing.

Source: Read the original report | Published: June 15, 2014