Khalifa Economic Zones Abu Dhabi – KEZAD Group and NMDC Energy, a subsidiary of National Marine Dredging Company (NMDC), on Monday signed an agreement for the establishment of a new manufacturing facility in KEZAD.
The 50-year lease agreement will see NMDC Energy invest Dhs367 million ($100 million) in a 224,000 sqm facility in KEZAD, designated for modular fabrication.
The project will offer several strategic benefits to the regional oil and gas sector, including world-class engineering, procurement, project management, fabrication, installation, and commissioning services for project owners and operators. The facility will also create an estimated 3,000 new jobs.
Mohamed Al Khadar Al Ahmed, CEO Khalifa Economic Zones Abu Dhabi – KEZAD Group, said, “As the UAE’s premier industrial and economic zones, KEZAD Group is continuously working to advance the country’s energy, logistics, and marine engineering services. In keeping with the vision of our wise leadership, KEZAD Group is always striving to bolster the UAE’s marine sector by supporting the expansion of national assets like NMDC in the emirate of Abu Dhabi.”
Ahmed Al Dhaheri, CEO of NMDC Energy, said, “This partnership marks a significant milestone for NMDC Energy as we deepen our commitment to the UAE’s industrial growth and sector innovation.”
He added that establishing this new modular fabrication facility at KEZAD represents a significant investment to support the UAE’s vision of becoming a global industrial powerhouse.
NMDC Energy operates advanced fabrication facilities in Abu Dhabi, with a capacity to produce up to 100,000 tonnes of structural steel annually across an area of 1.3 million square metres. Additionally, NMDC is expanding its capabilities with a new 450,000-square-metre fabrication yard in Ras Al Khair Port, Saudi Arabia, which will have a projected capacity of 60,000 tonnes per year by 2026.
The company owns a fleet of 22 offshore vessels with modern facilities to support its shallow and deep-water operations. These vessels can lift structures weighing up to 4,200 tonnes and are also equipped to lay subsea cables and pipelines up to 66 inches in diameter in water depths from 10 to 2,000 metres.
Meanwhile Khalifa Economic Zones Abu Dhabi – KEZAD Group, the largest operator of integrated and purpose-built economic zones, and Ducab Metals Business, a leading supplier of metals solutions in the region, signed a lease agreement for expanding its existing manufacturing facility in KEZAD.
The 50-year lease agreement, signed in the presence of Mohamed Al Khadar Al Ahmed, CEO Khalifa Economic Zones Abu Dhabi – KEZAD Group, and Khaled Lootah, Chairman of Ducab Group, at the Make It In The Emirates Forum 2024, will see Ducab Metals Business adding 51,015 square metres to its existing 50,000 sqm facility in KEZAD for increasing high-quality copper and aluminium industrial products capacity.
This expansion brings Ducab Metals Business’ presence in KEZAD to over 100,000sqm.
The project will offer several strategic benefits, including the company’s use of their proprietary best-in-class research and development to help enhance Abu Dhabi’s reputation as a hub for the new varieties of advanced metal products. The facility will certainly also create new jobs in the process.
Mohamed Al Khadar, CEO of KEZAD Group, said, “Ducab Metals Business is a reputable name in the industry. KEZAD Group is spearheading the progress in metal manufacturing as one of the leading industrial and economic zones in the United Arab Emirates. KEZAD Group is helping to pave the road for sustainable growth and innovation in the UAE’s metal sector through Abu Dhabi’s business-friendly policies for the advances of metal industries and investment in associated infrastructure.”
Meanwhile NMDC Group has announced its financial results for the first quarter of 2024 (Q1, 2024), reporting a 67 per cent growth in revenues and a 112 per cent surge in net profits compared to the same period last year.
In addition, NMDC Group announced the launch of new projects and the commencement of strategic initiatives, highlighting the company’s competitive standing in both local and international markets.
In first quarter of 2024, NMDC Group’s revenues soared to Dhs5.342 billion, up 67 per cent from Dhs3.208 billion in the first quarter of 2023, marking an increase of Dhs2.134 billion.
Net profits also saw a substantial rise, with a 112 per cent increase from Dhs303 million in the first quarter of 2023 to Dhs641 million, effectively doubling the Group’s profits from the previous year and highlighting a robust performance and strategic expansion into new projects.
Asset value for the Group also witnessed a 10 per cent growth, reaching dhs22.959 billion in the first quarter of 2024, up from Dhs20.847 billion the previous year-an increase of Dhs2.112 billion.