TA’ZIZ and Alpha Dhabi Holding have signed a strategic collaboration agreement for about $10 billion in planned chemicals investment in Abu Dhabi, aiming to expand local manufacturing and reduce reliance on imported industrial materials. The move targets up to 14 new chemicals, adding around 2.2 million tonnes per annum of capacity, which could reshape supply chains for construction, automotive, packaging, and advanced manufacturing sectors globally.
Strategic collaboration details
The agreement was announced at the Make it in the Emirates platform and focuses on new industrial chemicals production within the TA’ZIZ ecosystem in Al Ruwais Industrial City, Al Dhafra region, Abu Dhabi. A joint feasibility and market study is underway, with final investment decisions and regulatory approvals still pending. The partnership is one of Abu Dhabi’s largest planned chemicals investments, aligned with the UAE’s broader industrial strategy.
Planned chemicals and applications
The proposed products include styrene and polystyrenes, acrylic acid and derivatives, polyols, MDI, epoxy resins, and linear alpha-olefins. These materials are critical inputs for construction, automotive, packaging, consumer goods, infrastructure, and advanced manufacturing. The production is anchored in domestic demand, aiming to substitute key products currently imported into the UAE, giving the agreement strategic weight amid global focus on local supply chains and industrial resilience.
Supply-chain impact
The chemicals would be integrated within the TA’ZIZ and wider ADNOC ecosystems, leveraging existing synergies in feedstock sourcing, utilities, infrastructure, and facilities integration. This model is intended to improve capital efficiency and competitiveness while providing local manufacturers with access to inputs critical for downstream industries. The move could reduce import dependence for the UAE and potentially create new export opportunities for the region.
What buyers should watch
Overseas chemical buyers should monitor the progress of the feasibility study and final investment decisions, as the planned capacity of 2.2 million tonnes per annum could impact global supply dynamics for styrene, acrylic acid, polyols, and epoxy resins. The import substitution focus may reduce UAE demand for these chemicals from traditional suppliers, while creating new sourcing opportunities for local production. Buyers in construction, automotive, and packaging sectors should assess potential shifts in regional supply chains.
Quotes from executives
“This strategic collaboration with Alpha Dhabi offers significant potential to expand TA’ZIZ’s mission to drive industrial growth, enable import substitution and create new economic opportunities in the UAE,” said Mashal Saoud Al-Kindi, CEO of TA’ZIZ. “We look forward to working with our partners to swiftly progress the joint study and unlock the industrial and economic potential from the new chemical products.”
“Our partnership with TA’ZIZ reflects Alpha Dhabi’s commitment to investing in strategic, future-focused industrial platforms that support the UAE’s economic transformation,” said Engineer Hamad Al Ameri, Managing Director and Group Chief Executive Officer of Alpha Dhabi Holding. “The proposed chemicals derivatives will strengthen domestic manufacturing, unlock export opportunities and create sustainable long-term value.”
Source: Read the original report | Published: May 06, 2026