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AD Ports deepens industrial push with Azizi lease

AD Ports Group has agreed a Dh2 billion long-term land lease with Azizi Developments, marking one of the largest private-sector commitments inside Abu Dhabi’s industrial and logistics ecosystem and underlining the emirate’s drive to anchor manufacturing alongside trade corridors.

The agreement covers a substantial tract of land within Khalifa Economic Zones Abu Dhabi, the industrial and free-zone arm of AD Ports Group, and is intended for the development of multiple manufacturing facilities supported by warehousing and logistics infrastructure. Executives from both companies said the sites would be developed in phases, with initial construction work expected to begin after detailed master-planning and regulatory approvals are completed.

AD Ports Group has positioned industrial cities and economic zones as a core growth pillar, complementing its ports, maritime services and logistics platforms. The deal with Azizi brings a major property developer into the manufacturing and industrial real-estate space, reflecting a broader shift in Abu Dhabi’s investment landscape towards production-led growth rather than purely commercial or residential development.

Senior officials at AD Ports Group described the lease as a vote of confidence in the emirate’s industrial strategy, which prioritises advanced manufacturing, food processing, building materials and export-oriented industries. The location within Khalifa Economic Zones offers direct access to Khalifa Port, one of the region’s largest deep-water ports, as well as road and rail links designed to connect manufacturers to Gulf and global markets.

Azizi Developments, best known for large-scale residential and mixed-use projects in Dubai, said the agreement allows it to diversify into industrial assets at a time when demand for regional manufacturing capacity is rising. Company executives indicated that the planned facilities would cater to a range of tenants, including local producers and international firms seeking a base in the Gulf with integrated logistics support.

The lease structure is designed to run for several decades, giving tenants long-term visibility on costs and land availability, a factor increasingly cited by manufacturers when selecting locations for capital-intensive projects. AD Ports Group has previously said long-term land security is essential to attracting investments in sectors such as metals, construction materials, pharmaceuticals and light engineering.

Economic planners in Abu Dhabi have emphasised manufacturing as a driver of non-oil growth, employment and export revenues. Industrial zones linked to ports are seen as a way to shorten supply chains, reduce logistics costs and increase the competitiveness of locally produced goods. The partnership with Azizi fits into this model by combining industrial land with private-sector development and financing.

Market analysts note that the timing of the deal is significant. Manufacturers across the Middle East are reassessing supply chains in response to shipping disruptions, energy-price volatility and changing trade patterns. Abu Dhabi’s pitch has centred on stable regulation, modern infrastructure and proximity to major consumer markets in Asia, Africa and Europe.

AD Ports Group has steadily expanded its economic zones portfolio, both within the emirate and abroad, as part of a strategy to integrate ports, logistics and industrial development under a single platform. Khalifa Economic Zones Abu Dhabi hosts hundreds of companies across sectors ranging from aluminium and polymers to food processing and logistics services.

For Azizi, the move represents a strategic broadening of its business model. While the company retains a strong focus on residential projects, executives have spoken about the need to tap into sectors aligned with national development priorities and long-term demand. Industrial real estate, backed by government-led infrastructure investment, is increasingly viewed as offering stable returns compared with more cyclical property segments.

Officials from both sides highlighted job creation and technology transfer as expected outcomes of the manufacturing sites, although specific employment figures have not been disclosed. They added that sustainability standards would be incorporated into the design and construction of the facilities, in line with Abu Dhabi’s wider environmental and energy-efficiency goals.
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