Business intelligence reports say transformative projects reshaping emirate

Khalifa Economic Zones Abu Dhabi – KEZAD Group, the largest operator of integrated economic zones in the region, continues to lead the UAE’s infrastructure development with transformative projects that are reshaping Abu Dhabi into a global hub for industrial and economic activities.

KEZAD is playing a pivotal role in the UAE’s efforts to diversify its economy and reduce dependence on hydrocarbons.

The UAE’s infrastructure market remains buoyant, underpinned by government-led initiatives in transport, logistics, renewable energy, and industrial projects, ensuring robust growth prospects over the next decade.

Moreover, the Market Review for Q2, 2024 by CBRE, the global leader in commercial real estate services and investment, highlighted that Abu Dhabi’s industrial sector continues to experience robust growth. The demand for quality industrial space is driven by expansion in manufacturing and logistics, further solidifying Abu Dhabi’s position as a regional hub for industrial activities.

KEZAD Group’s economic zones span across an impressive 550 km², encompassing purpose-built areas tailored to support industries such as renewable energy, food and beverages, automotive-related manufacturing, and green steel production. KEZAD contributes more than AED 126.5 billion to Abu Dhabi’s GDP, representing 21.3% of the emirate’s non-oil economy. With a strategic focus on sustainability, KEZAD’s infrastructure not only serves as a foundation for industrial development but also aligns with global trends towards decarbonisation and green technologies.

Abdullah Al Hameli, CEO of Economic Cities & Free Zones at AD Ports Group, remarked, “KEZAD Group remains committed to driving innovation and supporting businesses in their pursuit of sustainability and operational excellence, in line with the vision of the leadership of the country. Through our advanced infrastructure, strategic partnerships, and forward-thinking initiatives, we are setting new benchmarks for industrial development in the region.”

According to an Infrastructure Report by BMI, a FitchSolutions Company, Abu Dhabi’s infrastructure investments are characterised by a strong commitment to renewable energy. The report notes that the UAE is becoming a hub for green hydrogen and solar technologies. A Knight Frank analysis corroborates this, noting that KEZAD’s ongoing expansions are directly aligned with increasing demand for high-quality logistics and industrial facilities. The CBRE report further emphasises the importance of advanced logistics facilities, citing that high-quality spaces in Abu Dhabi are increasingly sought after, reflecting growing investor confidence.

KEZAD’s ongoing expansions include an additional 250,000 square metres of warehousing capacity by the end of 2025, which will bring its total capacity to over 837,000 square metres. The group’s facilities are strategically designed to support pre-built industrial and logistics developments, offering operational efficiency and sustainability to customers. Warehouse occupancy rates have continued to increase rapidly despite significant capacity additions, driven by increasing demand from sectors such as automotive, AgTech, and advanced manufacturing.

Mohamed Al Khadar Al Ahmed, CEO of Khalifa Economic Zones Abu Dhabi – KEZAD Group, commented, “The expansion of our warehousing capacity reflects KEZAD’s proactive approach to meeting the growing needs of our clients. By providing cutting-edge facilities tailored to diverse industries, we are reinforcing our position as a regional hub for industrial and logistics excellence.”

KEZAD Group’s achievements in sustainability and innovation have earned it numerous accolades, including being ranked among the Top 3 Global Free Zones of the Year 2024 by the Global Free Zones Awards (GFZA) and being awarded the Sustainable Zones honour for its emphasis on environmentally friendly business environments. In addition, KEZAD Group received the prestigious UN Investment Promotion Award for 2023 for its efforts in promoting sustainable investments in renewable energy and green technologies. Further recognition includes the SDG Model Zone Partner Award 2023-2024, which highlights KEZAD’s unparalleled contributions to sustainable development, and the Industrial Strategic Partner Award 2024 from the UAE Ministry of Industry and Advanced Technology for fostering innovation and non-oil diversification in the industrial sector. KEZAD is also an EFQM 6-star Certified Organisation, reflecting its leadership in organisational excellence and sustainable industrial development.

In addition to its sustainability initiatives, KEZAD is at the forefront of digital transformation. Its partnership with Siemens, announced in late 2024, aims to enhance the readiness of KEZAD’s industrial clients for Industry 4.0. This collaboration includes the deployment of cutting-edge technologies to improve energy efficiency and operational excellence. The BMI report underscores the importance of such initiatives, and Knight Frank further highlights the growing investor interest in industrial zones offering advanced, operationally efficient facilities bolstered by regulatory clarity and supportive government policies.

While transport infrastructure development remains a significant driver of Abu Dhabi’s industrial growth, projects like the Etihad Rail project enhance logistical connectivity across the UAE. KEZAD’s infrastructure aligns seamlessly with such projects, offering multimodal transport solutions, including seamless access to ports, highways, and rail networks, ensuring that its industrial clients benefit from unmatched logistical efficiency.

As KEZAD continues to expand its industrial footprint and enhance its infrastructure, it solidifies Abu Dhabi’s position as a key player in the global industrial and manufacturing landscape.

With a growing pipeline of projects, KEZAD is a cornerstone of Abu Dhabi’s infrastructure ambitions. These efforts not only contribute to the UAE’s global competitiveness, but also position KEZAD as a leader in fostering sustainable economic growth and industrial innovation.