In a significant advancement for the region’s industrial landscape, Azizi Developments has signed its second major lease agreement with Khalifa Economic Zones Abu Dhabi (KEZAD). This agreement reinforces Azizi’s commitment to expanding its manufacturing and logistics capabilities in the UAE, representing a crucial step towards meeting the evolving demands in the construction and housing sectors.
KEZAD Group, a subsidiary of AD Ports Group, and Azizi Developments have formalized a 50-year lease agreement valued at AED2 billion (approximately US$540 million). This strategic partnership aims to enhance Azizi’s manufacturing footprint and bolster logistics operations in the fast-expanding KEZAD area.
Azizi Expands Manufacturing Footprint in KEZAD
The newly leased plots, covering almost 440,000 square meters, will accommodate 12 factories, significantly contributing to Azizi’s ambitious project pipeline. This expansion includes landmark master-planned communities and various developments tailored to meet the growing needs of the housing market. The agreement is a testament to Azizi Developments’ proactive approach to scaling its operations within KEZAD.
This latest contract follows the initial agreement signed in October of last year, where both entities entered into a similar 50-year land lease for plots totaling about 220,000 square meters in KEZAD A (KEZAD Al Ma’mourah). That first lease was crucial in addressing the surging demands in the housing industry across the region.
The initial investment of AED1 billion (US$272 million) from the previous lease included establishing facilities for reinforcement steel cutting and bending, timber joinery, duct fabrication workshops, a modular factory, and both aluminum and glass fabrication units. With the new lease agreement, Azizi Developments is poised to further enhance its capabilities and respond effectively to market demands.
Abdullah Al Hameli, CEO of Economic Cities & Free Zones at AD Ports Group, expressed confidence in the partnership, stating, “Azizi’s decision to expand its manufacturing base in KEZAD reflects the strong confidence that leading developers place in our integrated industrial ecosystem.” He emphasized the critical role of KEZAD in providing the necessary land, infrastructure, and logistics to enable companies to grow sustainably and operate efficiently.
Al Hameli further noted, “This agreement supports Abu Dhabi’s industrial expansion and strengthens the long-term partnership between KEZAD and Azizi as they continue to invest in advanced production and supply chain capabilities.” This collaboration not only promotes industrial growth in the region but also highlights the increasing synergy between major developers and economic zones in the UAE, setting the stage for future developments.