T’aziz eyes new chemical production with AED 10 bn backing + Dana Gas, Levidian plan graphene park in Sharjah

The UAE is doubling down on its push into sovereign industrial capability and advanced manufacturing as it looks to localize strategic supply chains amid ongoing global disruptions. With a new graphene project and T’aziz set to potentially produce 14 new industrial chemicals, UAE energy players are shifting increasingly toward higher-value industrial output, moving beyond just energy production to local assembly, integration, and input manufacturing.

More from T’aziz

Ta’ziz — Adnoc and ADQ’s chemicals JV in Ruwais — is scaling up its chemical ambitions again, this time tapping Alpha Dhabi Holding for a possible USD 10 bn investment program in Al Ruwais Industrial City aimed at producing up to 14 additional industrial chemicals, according to a statement (pdf). The partnership could add around 2.2 mn tons per annum (mtpa) of new capacity, targeting sectors including construction, packaging, automotive, infrastructure, and advanced manufacturing.

Proposed products include styrene, polystyrene, acrylic acid derivatives, epoxy resins, and linear alpha-olefins — materials Ta’ziz says are backed by strong domestic demand and could strengthen local supply-chain resilience. CEO Mashal Al Kindi said the project is designed to “enable import substitution” and create new economic prospects in the UAE.

ICYMI- The announcement lands just a day after Ta’ziz locked in USD 28.5 bn in long-term sales, feedstock, and offtake agreements spanning methanol, caustic soda, and polyvinyl chloride, alongside a USD 5 bn+ gas supply agreement with Adnoc Gas.

IN CONTEXT- The agreements come as Ta’ziz’s total chemicals production is set to rise to 4.7 mtpa by 2028 from the 17 sq km Al Ruwais facility.

A big graphene push

Sharjah’s Dana Gas and UK advanced materials firm Levidian are taking their graphene push industrial-scale, signing an MoU to develop the Sharjah Graphene Park — a phased manufacturing project that could eventually exceed USD 50 mn in investment, according to a statement (pdf). The move expands a 2025 pilot partnership into a broader plan to produce graphene locally and eventually manufacture Levidian’s Loop systems in the UAE.

REFRESHER- Dana Gas and Levidian first partnered last year on a pilot Loop unit capable of producing up to 2 tons of graphene and hydrogen annually.

What’s Loop? Levidian’s technology uses microwave plasma to break down methane into hydrogen and solid graphene instead of burning it into CO2.

Why it matters: In practical terms, it offers downstream players a way to monetize underutilized gas streams while producing a high-value advanced material that remains expensive and difficult to manufacture at scale. The project is designed to create a regional supply base for graphene as industrial demand starts to pick up, targeting sectors like construction, coatings, polymers, and energy storage.

The technology has also started gaining traction locally: Adnoc Gas, Baker Hughes, and Levidian deployed Loop at the Habshan Gas Processing Plant last year, around the same time the UAE began working with international partners on hydrogen legislation and standards.

What’s next: The first phase involves deploying Loop systems in Sharjah with a targeted graphene production capacity of around 15 tonnes annually and an investment of USD 2-5 mn. If demand materializes, the project could scale into a multi-unit production cluster with investment rising beyond USD 50 mn.