creating possibilities in the food industry

/ CREATING POSSIBILITIES IN THE FOOD INDUSTRY

KIZAD Food Cluster is the hub for food processing, storage and distribution activities in the UAE, serving the major consumption markets in the region. For regional and global food processing companies looking to serve the markets in the MENA region, KIZAD Food Cluster offers a wide range of benefits and facilities to set up their operations in quick time.

/ KIZAD FOOD CLUSTER

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CREATING POSSIBILITIES IN THE FOOD INDUSTRY

Close to Source and Consumption Markets

Pollution-free operating environment

Reliable Availability of Utilities

Efficient Infrastructure for Waste Management

Advanced Laboratory Services

Packaging, Printing & Specialised Logistics Solutions

In addition to major global and regional brands such as BRF, National Food Products Company, Binghatti, Pinar, Spinneys etc. providers of essential services and products such as cold storage facilities, testing and certification facilities, packaging solutions etc. have also setup their operations in KIZAD Food Cluster. Development plans of the cluster include developing central processing centres for sorting and grading etc. while initiatives are already underway to develop bulk-terminal, livestock handling capabilities, liquid terminal, statutory bodies on site etc. in Khalifa Port.


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1 World Economic Forum 2019 2 INSEAD 2019 3 World Bank 2019 4 McKinsey 2019

#1IN THE MENA REGION

• Global Competitive Index1

• Global Innovation Index2

• Ease of Doing Business3

• Access to Electricity3

IN THE UNITED ARAB EMIRATES

• Highest Contributor of the UAE’s GDP

• Highest Oil & Gas Reserves in the UAE

• Most Competitive Utility Rates in the UAE

• Most Developed Technology Base in the Middle East4

#1United Arab Emirates Abu Dhabi


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DEVELOPING ONE OF THE LARGEST INDUSTRIAL AND LOGISTICS ECOSYSTEMS IN THE WORLD

Khalifa Industrial Zone Abu Dhabi [KIZAD], a subsidiary of Abu Dhabi Ports, is the largest industrial and free trade zone in the MENA region and offers the most competitive business setup solutions and world-class infrastructure facilities in the UAE. Spread over 410 km2, KIZAD is home to over 600 companies across industries such as Food Processing, Polymers, Metals, Automotive, Pharmaceuticals, Logistics, Oil & Gas, among others.

Setting up at KIZAD enables businesses to benefit from the strategic location, faster access to markets, low set up and operational costs, flexibility in scale of operations and efficient investor support services.

IDEAL LOCATION TO SERVE THE MARKETS IN THE MENA REGION

Strategically located between Abu Dhabi and Dubai, the two most important economic centres of the region, KIZAD is ideally positioned to serve the key consumption markets in the GCC, Middle East and Africa.


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WELCOME TO

KIZAD

1 UNCOMtrade 2 Alpen Capital GCC Food Industry Report 2019


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/ A REGIONAL HUB FOR THE FOOD INDUSTRY

$9.1BILLION DOLLARS

$5.4BILLION DOLLARS

GCC per Capita Estimated Food Consumption in 2018 2

Forecasted per Capita Food Consumption in GCC by 2023 2

Forecasted Sales of Functional Food in the GCC 2020 2

GCC’s Annual Imports of Halal Meat in 2018 1

Forecast of Food Consumption in GCC by 2023 (CAGR Of 3.3% During 2018 – 2023) 2

60.7MILLION TONS

908.7KILOGRAMS

957.1KILOGRAMS

1 Food Export/Euromonitor

/ Increasing Demand for Packaged Food Products


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$7.7BILLION DOLLARS 7%

Forecasted Growth in Demand for Packaged Food In UAE (CAGR: 2018 - 2023) 1

Forecasted Demand for Packaged Food in UAE in 2023 1

Growth in Demand for Packaged Food in UAE (2014 - 2018) 1

Demand for Packaged Food in UAE in 2018 1

$5.7BILLION DOLLARS 6%

The Ideal Location to Serve the Growing Markets in the Middle East and Africa

Part of Khalifa Industrial Zone Abu Dhabi (KIZAD), KIZAD Food Cluster offers true multimodal access through the port, roads and upcoming rail - all available onsite - and five major international airports within just 2 hours’ driving distance.


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COUNTRY / EMIRATE Gross domestic product (GDP)

POPULATION

UNITED ARAB EMIRATES USD 422 Billion (2018) 9.3 Million (2018)

ABU DHABI USD 254 Billion (2018) 2.8 Million (2018)

DUBAI USD 115 Billion (2018) 3.2 Million (2018)

SHARJAH USD 26 Billion (2018) 1.6 Million (2018)


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EASY GLOBAL ACCESS

WEEKLY DIRECT CONTAINER LINERS CONNECTING KHALIFA PORT AND KIZAD WITH THE WORLD

Creating Possibilities to Grow and Succeed

RED, BLACK AND MEDITERRANEAN SEAS

# SAILINGS COUNTRY

11 Kingdom of Saudi Arabia

1 Lebanon

8 Egypt

6 Morocco

1 Israel

11 Turkey

ATLANTIC OCEAN (NORTH AMERICA)

# SAILINGS COUNTRY

4 United States of America

5 Bahamas

INDIAN OCEAN REGION

# SAILINGS COUNTRY

5 Oman

1 Yemen

17 India

17 Pakistan

3 Sri Lanka

2 Somalia

1 Kenya

MEDITERRANEAN SEA AND ATLANTIC OCEAN (EUROPE)

# SAILINGS COUNTRY

3 Italy

5 Greece

2 Germany

3 Netherlands

2 Belgium

2 United Kingdom

5 France

6 Spain

ARABIAN GULF AND THE GULF OF OMAN

# SAILINGS COUNTRY

82 United Arab Emirates

16 Kingdom of Saudi Arabia

13 Kuwait

9 Oman

9 Bahrain

5 Qatar

10 Iraq

PACIFIC OCEAN (ASIA)

# SAILINGS COUNTRY

36 China

3 Hong Kong

5 South Korea

9 Singapore

3 Malaysia

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/ KHALIFA PORTStrategically located halfway between Abu Dhabi and Dubai, Khalifa Port is the first semi-automated, deep-water, container port in the GCC region. Fully owned by Abu Dhabi Ports, the port handles container cargo, general cargo, roll-on and roll-off (RoRo) as well as break-bulk cargo.

Connectivity is at the core of Khalifa Port’s uniqueness. It serves over 25 shipping lines, offering global reach and direct links to major international destinations. The port is adding capacity to handle over 9 million TEUs by 2024, significantly increasing from its current capacity of 2.5 million TEUs. It will also be the first port in UAE to be linked through the new Etihad Rail network, which is currently under construction.


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EXCELLENT CONNECTIVITY TO SOURCE AND CONSUMPTION MARKETS

Its close proximity to Al Ain – the hub for fresh produce in the UAE – enables easy access to raw materials required for the food processing industry. Its strategic location between Abu Dhabi and Dubai, the 2 most important commercial hubs in the region, enables KIZAD to connect around 75% of UAE’s population and 89% of the country’s GDP within a 90-minute driving distance along congestion-free 8 lane highways.

RELIABLE AVAILABILITY OF POWER, GAS AND CLEAN WATER

KIZAD Food Cluster is equipped with sufficient infrastructure network for all necessary utilities such as power, clean water and gas. ensuring reliable and efficient supply for all food processing, storage and distribution activities.

ESSENTIAL PRODUCTS AND SERVICES IN THE VALUE CHAIN

KIZAD hosts a number of supporting industries such as packaging, printing etc within the zone which help to improve the efficiency of business operations for the investors in KIZAD Food Cluster.Specialised logistics service providers in the zone offer cold and chilled storage facilities for the food sector.

EFFICIENT INFRASTRUCTURE FOR WASTE MANAGEMENT

Fully aligned with Abu Dhabi Centre of Waste Management for efficient handling of solid wastes, KIZAD hosts operational, centralised sewage treatment facilities - reducing the cost of waste management for its investors.

ADVANCED LABORATORY SERVICES FOR TESTING AND CERTIFICATIONS

KIZAD hosts advanced laboratories offering testing and certification services that can further boost the cluster benefits for the entities in the food cluster. These laboratory services are designed to offer reliable, cost-effective and cutting-edge analytical solutions to help investors to maintain high levels of product quality and safety.

POLLUTION-FREE OPERATING ENVIRONMENT

Located in a pollution-free operating environment within KIZAD, the food cluster is a multi-phased development, allowing for flexibility to match the requirements of the businesses. The first phase of the cluster has over 2.5 million m2 of land allotted for food processing entities whereas the pre-built facilities available in KIZAD enables quick set up and project initiation. The cluster is expected to grow many fold in the coming years.

/ INFRASTRUCTURE AND BUSINESS ECO SYSTEM


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“Today, Raubi is expanding, and through a new state of the art plant in Kizad -

Abu Dhabi, the Raubi product range is currently penetrating the local market with five assorted flavours as a start, and Introducing multiple additional flavours through a five year plan

MUHAMMAD BINGHATTI CEO, BINGHATTI HOLDINGS

/ Free Zone and Domestic Industrial Zone Facilities

KIZAD offers both Free Zone and Domestic Industrial Zone facilities for investors, who can choose their facilities based on their business strategy and requirements.

Free Zone

The Free Zone jurisdiction allows 100% foreign ownership in companies, and it is suitable for wholesale distributors, re-exporters, warehousing activities, service providers and manufacturers targeting markets outside the MENA region.

• 100% foreign ownership in companies

• 0% customs duty

• 0% corporate, personal and sales tax

• No restrictions on capital and profit repatriation

• Designated Zone for VAT Exemption

• No minimum capital requirements

Domestic Industrial Zone

Companies in the domestic industrial zone can enjoy direct access to the markets in the UAE and the GCC area. Goods produced in the domestic industrial zone can be certified “MADE IN UAE” by the relevant authorities and can avail duty-free status in the GCC region.

• Joint venture with a UAE partner

• 0% corporate, personal and sales tax

• 0% customs duty for industrial raw materials and machinery

• Easy repatriation of profits and capital

• ‘MADE IN UAE’ certificate for qualified products

• Potential for duty-free trade in the GCC


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Key feature Free Zone Domestic industrial zone

OWNERSHIP 100% foreign ownership Up to 49% foreign ownership

TAX (CORPORATE, INCOME & SALES)

100% tax free 100% tax free

VAT No VAT Standard VAT rate is applicable

SALES IN LOCAL MARKET Through distributors and / or local agents

Direct

CUSTOMS DUTY No customs duties within Free Zone

Standard customs duty for sales to local market (import) and GCC (first point of entry-import).

Standard customs duty to be paid on deposit, for goods in transit:

- Between points of entry (seaports/airports/borders) and Free Zones

- Between Free Zones and point of exit (export).

No customs duty applicable for sales of locally manufactured goods in GCC and very low duty structure in GAFTA countries (for National Industrial Licence Holders)

Standard customs duty for sales to local market (import) and GCC (first point of entry-import).

Customs duty exceptions on import of raw materials and machinery for manufacturing activities

Local customs duties applicable for imports into other countries.

Local customs duties applicable for imports into other countries

CAPITAL & PROFIT REPATRIATION 100% Allowed As per the contract between partners

LABOUR LAW Free Zone rules and labour law UAE labour laws

Enabling Significant Cost Savings• Prime location facilities at the most competitive lease rates

• The most competitive utility rates in the UAE

• Substantial tax and duty benefits

Connectivity and Proximity ADVANTAGE

• Easy access to key markets through 2 global ports, 5 international airports, multi-lane highways and planned rail, connecting KIZAD Food Cluster with the rest of the UAE and GCC

• Shared facilities for product testing and certification services

• Presence of supporting industries such as packaging, specialised logistics services within the zone

Flexibility in Scale of Operations• Future ready development with provisions for expansion and integration

with new projects

• Option to operate for the local, regional and global markets through free zone and domestic economic facilities

• Flexibility in lease tenure and structuring.

Growing Community of Businesses, Clusters and Amenities• Multiple residential, community services, leisure facilities within

10 minutes’ drive

• Multiple on-site staff accommodation facilities are under various stages of planning and development

• Clustered approach with shared amenities for better planning and leaner development for customers

/ KEY ADVANTAGE


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kizad.ae @kizaduae

[email protected]

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creating possibilities in the food industry

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