Al Rawabi to Set Up AED 650 million Dairy Production Facility in KIZAD
- March 17, 2022
- FMCG HORECA BUSINESS
KIZAD, part of AD Ports Group’s Economic Cities & Free Zones (EC&FZ) cluster, announced the signing of a lease agreement with Al Rawabi, one of the leading dairy and juice companies in the UAE, for the establishment of a dairy production facility in Abu Dhabi designed to meet growing consumer demand.
Under this agreement, Al Rawabi will initially develop two square kilometres in KIZAD with an additional three square kilometres slated for the future. The dairy farm, with an investment of AED 650 million will be home to 10,000 Al Rawabi cows and increase their export efforts across the wider GCC region.
Abdullah Al Hameli, Head of Economic Cities & Free Zones Cluster, said: “Al Rawabi’s confidence in KIZAD is a testament to AD Ports Group’s commitment to driving the UAE’s National Food Security Strategy through the supply of high-quality dairy and food products, while also contributing to the growth of the nation’s industrial sector.
In addition to supporting the advancement of local farms and creating job opportunities in the local farming sector, our agreement presents a positive boost for regional consumers by offering easier access to fresh produce.”
Prof. Dr. Ahmed El Tigani, CEO, Al Rawabi, said: “Al Rawabi’s investment in KIZAD’s food ecosystem will enable us to service a broader scope of consumers both in the UAE and the wider region. The strategic location, access to food-related services, and readiness of land area in KIZAD will help Al Rawabi grow its operations long-term, increasing business reach and potential export across markets.
“Today, Al Rawabi can look forward to growing market share in the UAE, GCC, and Africa by leveraging the strategic location in KIZAD that offers a fully integrated trade and logistics platform to facilitate export across the emirates and the region. We expect to produce 23 million litres in the first operational year out of KIZAD, and to move approximately 1,000 containers of goods annually.”
Driven by a workforce of over 200 skilled people, Al Rawabi’s dairy production facility in KIZAD will include milk parlours, a dairy plant, a mechanic and maintenance workshop, a feed factory, staff accommodation, and a biogas plant, along with fertilizer manufacturing amenities that will also support the wider agriculture ecosystem in Abu Dhabi.
Al Rawabi will apply the latest technologies in processing waste resulting from the project that will include the production of green energy. Additionally, 10 megawatts of clean power will be generated by equipping a large portion of site assets with solar panels, reducing the operational costs and CO2 emissions at the site.
Al Rawabi will also benefit from proximity to KIZAD’s recently launched Regional Food Hub – Abu Dhabi, in collaboration with Rungis, set to be one of the region’s largest multi-category wholesale food trading and logistics platforms.
Located near Khalifa Port, KIZAD provides customers with world-class infrastructure, competitive utilities, in addition to direct access to a multimodal transport network with links over the sea, road, and air, as well as rail in the future.