Abu Dhabi Polymers Park, a subsidiary of Abu Dhabi Basic Industries Corporation (Adbic), is targeting $1 billion (Dh3.67bn) investment in the first year of operations and $4.5bn by 2015, according to a top official.
The Polymers Park is allotting space on a lease basis in addition to infrastructure facilities and export promotion support to manufacturers, who set up their units in the park.
"Hopefully, we will complete entire land allotment process by 2011 and go for Polymers Park-II thereafter. First manufacturing unit in the park will be operational during the second quarter of 2009," Mohammed H Al Qamzi, Senior Vice-President, Abu Dhabi Polymers Park, told Emirates Business.
Infrastructure facilities will be ready by September this year. Minimum land allocation is 25,000 sqm and for building space, it's 5,000 sqm. Already 30 per cent of land has been booked by manufacturers from the Middle East.
"We are also getting enquiries from the US and Europe. We complete the land allotment to manufacturers by March," he said.
Abu Dhabi Polymers Park would encourage manufacturers to tap the international market by providing support services on logistics and supply chain mechanism.
"Polymers Park units should export 60 per cent of their finished products. We are expecting over one million tonnes of production in the Polymers Park. One technical centre on research and development (R&D) is being set up to develop solutions to meet the changing requirements of the global market," Al Qamzi said.
On the minimum cap on land space of 25,000 sqm, which will be a barrier for small and medium enterprises (SMEs) to set up facilities in the park, Al Qamzi said: 'We will be developing a pool of raw materials and this will reduce production costs for manufacturers. We have decided to allow SMEs to access this pool of raw materials so that they can reduce their costs. We are also in discussion with Khalifa Fund to extend funding support to the SMEs."
On pointing out that the banking sector is tightening norms on lending following the global economic slowdown, he said: 'Since this is the sector not explored by banks, there wouldn't be funding problem to polymer units. Domestic banks and foreign banks are showing interest in our park. Polymers Park is not a free trade zone. Any company with a maximum cap of 40 per cent of foreign investment in a JV with local partner can be considered a domestic unit and avail tax-free benefits."