Azizi invests AED 1 bn in 12 building materials factories in Kezad

UAE private developer Azizi Developments will invest AED 1 bn in developing 12 building material factories in Abu Dhabi’s Khalifa Economic Zones’s (Kezad) A cluster, according to a press release. The company signed a 50-year land lease agreement with AD Ports Group.

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What we know: Covering an area of 220k sqm, the planned facilities include a reinforcement steel cut and bend facility, timber joinery, duct fabrication workshops, aluminum and glass fabrication unit, and an aluminum extrusion factory.

The rationale: Azizi’s move into the manufacture of building materials aims to respond to the demand in commercial real estate, which has seen a steady rise as a result of rapid population growth and the influx of international investors into the UAE to expand their operations.

Kezad has been doubling down on long leases: NMDC Energy inked a 50-year lease agreement in June to set up a new manufacturing facility in the zone back in September. UAE-based Apex Engineering Industries also signed a 50-year land lease agreement back in August to set up a AED 90 mn R&D and manufacturing plant in Kezad’s Area A in Al Ma'mourah. Dubai Cables Group subsidiary Ducab Metal Business (DMB) inked a 50-year lease agreement back in May with Kezad to expand its facilities in the industrial hub adding an additional 51 sqm to its existing 50k facility.