The steel manufacturing sector in the UAE is poised for significant growth with two major developments announced recently. Azizi Developments is set to establish 12 factories in Abu Dhabi’s Khalifa Economic Zones (KEZAD), while Ikigai Steel is launching a new facility in the Hamriyah Free Zone, Sharjah.
These expansions aim to meet the increasing demand for construction materials in the region, driven by a booming housing market.
Key Takeaways
- Azizi Developments to invest AED 1 billion in 12 factories in KEZAD.
- Ikigai Steel to establish a 548,000 sq. ft. factory in Hamriyah Free Zone.
- Both projects aim to enhance local steel production and support sustainable construction practices.
Azizi Developments’ New Factories
Azizi Developments has signed a 50-year land lease agreement to set up 12 state-of-the-art factories in KEZAD Al Ma’mourah. This project, with an investment of approximately AED 1 billion ($272 million), will include:
- A reinforcement steel cut and bend facility
- Timber joinery and duct fabrication workshops
- A modular factory
- An aluminum and glass fabrication unit
- An aluminum extrusion factory
Spanning around 220,000 square meters, these facilities will utilize advanced infrastructure to produce essential construction materials. The focus on modular construction using sustainable materials aligns with KEZAD’s commitment to environmentally friendly industrial practices.
Enhancing Construction Speed
The establishment of these factories is expected to significantly speed up the construction process in the region. By providing cost-effective and efficient production methods, Azizi Developments aims to meet the growing demands of the housing sector. Abdullah Al Hameli, CEO of Economic Cities & Free Zones at AD Ports Group, emphasized the importance of this project in supporting sustainable industrial manufacturing with minimal environmental impact.
Ikigai Steel’s Expansion
In a parallel development, Ikigai Steel has announced the establishment of a new factory in the Hamriyah Free Zone, covering an area of 548,000 square feet. This facility will have an annual production capacity of 30,000 tonnes and is backed by an initial investment of AED 30 million. The factory will feature cutting-edge technology and equipment to enhance production efficiency.
Strategic Location and Benefits
The Hamriyah Free Zone has become a strategic hub for heavy industries, including steel manufacturing. The new facility will not only serve local markets but also cater to regional demands, particularly in Saudi Arabia and Qatar. The free zone’s robust infrastructure and favorable investment environment were key factors in Ikigai Steel’s decision to expand in this location.
Economic Impact
Both projects are expected to contribute significantly to the UAE’s economic diversification efforts. They will create job opportunities, enhance local production capabilities, and support the ongoing construction boom in the region. The focus on sustainable practices in both developments reflects a growing awareness of the environmental impact of the construction industry.
As the UAE continues to invest in its industrial sector, these expansions in steel manufacturing are set to play a crucial role in meeting the demands of a rapidly urbanizing population while promoting sustainable development practices.
