Khalifa Port & Industrial Zone

Abu Dhabi Ports Company

Abu Dhabi Economic ForumAbu Dhabi, 2-3 March, 2009

2

Agenda

• About ADPC

• KPIZ Development Strategy

• The KPIZ Project

• Progress to Date

• Opportunities

3

The Company — Abu Dhabi Ports Company (ADPC)

Established by an Emiri Decree in 2006 by to

• Own, operate, maintain, manage and develop all of the

ports in Abu Dhabi (excluding O&G and military)

• Develop, manage and operate industrial, commercial and

services special economic and free zones

• To provide a viable platform that spurs the sustainable

economic growth, industrial diversification, social

development and global competitiveness of the Emirate

of Abu Dhabi

Establishment

Mission

4

Agenda

• About ADPC

• KPIZ Development Strategy

• The KPIZ Project

• Progress to Date

• Opportunities

5

The Landscape

6

The Approach: From Vision to Business Plan

Abu Dhabilong term

development agenda

'Abu Dhabi 2030'

KPIZvision,

strategy, and competitive positioning

Implemen-tation requirementsfor KPIZ• Real estate• Utilities• Labor• Raw material• Financing• Logistics• Admin. serv.• Other serv.

ADPC's role and business model• Business model• Role of ADPC

ADPC setupADPC setup

•Basicindustries•'Area A'

•Downstreamindustries•'Area B'

KPIZ strategic sectors

KPIZ conceptualdevelopment plan

Building blocksBuilding blocksContext and visionContext and vision

KPIZ business plan• Financial plan• Macroeco- nomic plan

Implemen-tation roadmap• Zone development• Commercial development

Business planBusiness plan

7

AD government agenda on economic transformationSummary

Abu Dhabi long term economic vision

"Abu Dhabi is a sustainable, diversified,

high-value add economy that

encourages enterprises and entrepreneurship and well integrated in the global economy

leading to better opportunities

for all"

Build a sustainable economy

Ensure a balanced social and regional

economic development approach that

brings benefits to all

Reduce GDP volatility through diversification

Stimulate exports to link AD into non-oil trade streams

Enlarge enterprise base by enhancing private sector

Maintain strong GDP growth momentum

Enhance competitiveness and improve productivity

Develop a highly skilled and highly productive workforce

Attract skilled workforce from abroad

Ensure environmental sustainability

Develop an open, globally integrated business environment

Develop a sufficient infrastructure to support economic growth

Policy priority areasPolicy priority areas Long term objectivesLong term objectives

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Co

re

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Education

Healthcare services

Trade

Construction andengineering

Transportationand logistics

En

abli

ng

in

du

stri

es

AD economic plan 2030: Diversification as key thrustManufacturing as major force of diversification KPIZ as hub for manufacturing

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Focus industries

Manufacturing

Ph

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Basic industries

Downstream industries

Co

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Abu Dhabi targets 8.5% p.a. growth from non-oil GDPKPIZ to be a major contributor

46 67 84 104 120150

3252

84

127

180

266

0

150

300

450

2005 2010e 2015e 2020e 2025e 2030e

(USD B)

Source: UAE interact; UAE Statistical Yearbook 2008; BCG analysis

Total Oil GDP (%)

Total Non-Oil GDP (%)

59 56 50 45 40 36

41 44 50 55 60 64

CAGR(2005–30) (%)

CAGR(2005–30) (%)

8.5

4.7

Oil sector Non-oil sector

CAGR 6.7%

78

119

168

231

300

416

KPIZ to significantly contribute to non-oil sector GDP growth

Abu Dhabi real GDP development projectionAbu Dhabi real GDP development projection

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By 2030, KPIZ will be a major contributor to Abu Dhabi

36%

55%

9%1

$416B

0

100

20

40

60

80

%

GDP

AD oil GDP

AD non-oil GDP

KPIZ

$180B

Exports2

Abu Dhabi

KPIZ

92%

8%

91%

9%

3.1M

Population

Rest of AD

KPIZ3

Share of KPIZ in Abu Dhabi 2030Share of KPIZ in Abu Dhabi 2030

1. KPIZ contributes 9% to total GDP and 14% to non-oil GDP 2. Including oil exports 3. Population living in KPIZ

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Agenda

• About ADPC

• KPIZ Development Strategy

• The KPIZ Project

• Progress to Date

• Opportunities

12

Port and basic industries as anchors of KPIZ

Port

Time

Initial anchor

Aluminium, steel, chemical, glass, paper as heavy industry anchors

Basic industries

Value-added products taking basic industryproducts downstream

Support services to basic industries and light manufacturing (commercial, logistics, ...)

Businesses choosing KPIZ as preferred location regardless of links to KPIZ

Light Manufacturing

Logistics & Services

Offices/Commercial

Urban living offering (residential real estate, shopping, leisure/entertainment, ...) Urban living

13

Khalifa Port

• Reclaimed offshore island located 4.6km from shore

• 12km long approach channel with 16m deep harbor

• 5 development phases till 2030

• 4 km2 onshore area

• Phase 1 (Operational mid 2012)

– 3.4km2 port island

– Capacity: 2M TEUs, 5M Tons various cargo and 110k cars

• Final Phase (2030)

– 15km2 port island

– Capacity: 15M TEUs, 45M tons various cargo and310k cars

– 26km quay walls and berth

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Industrial Zone: Four dimensions for sector prioritization

How much capital could be invested in each sector?

– No. of potential investors– Avg. investment of industry

Size of sector in KPIZSize of sector in KPIZB

12

Bubble size

Why should AD/KPIZ be interested in a specific industry sector?

• Macroeconomic impact• Knowledge development in AD• Environmental impact• Image builder

1234

Attractiveness for Abu DhabiAttractiveness for Abu DhabiA

x-ax

is

Why should a company be interested in setting up in KPIZ?

• Cost advantage• Access to sizable

fast-growing market• Leveraging unique KPIZ

business environment

12

3

Attractiveness of KPIZ for investors

Attractiveness of KPIZ for investors

C

y-axis

Bubble color

• ADPC revenue potential• ADPC capital intensity• Type of customers• Environmental footprint

Why should ADPC be interested in a specific industry sector?

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Attractiveness for ADPCAttractiveness for ADPCD

4

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Major strategic industries identified for the Industrial Zone

Basic and downstream industries

Petro-chemicals

Aluminum

Steel

Glass

Paper

Basic industry

Basic industry

1

2

3

4

5

Chemicalproductscluster

Engineeredmetal

productscluster

Paper,printing and packaging productscluster

Constructionindustrycluster

(construction products,

constructioncompanies)

Commercialtrans-

portationequipment

cluster

Electricalequipment

cluster(includinghouseholdappliances)

Aerospaceand

defensecluster

Clean tech

cluster

Machineryand

equipmentcluster

DownstreamDownstream

Nutrition and

healthcluster

(food and beverage, pharma-ceuticals)

1

2

3

4 5 6 7 8 9 10

Other manufactur-

ing

Trading & logistics (JVCO)

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12

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Value proposition

CBDcenter

Retail Community

CommercialResidential

Port

Basicindustries

Down-stream

industries

Maritime cluster

Offices

Logistics

Privileged access to competitively priced feedstock

• Aluminum, steel, petrochemicals, glass, paper

Unique offeringUnique offering

Highly integrated setup ('seamless')• Heavy industries supporting

downstream manufacturing clusters• Downstream manufacturing + services• Industrial zone + urban living

Easy access to major regional and international markets

• Hub for GCC, Africa, South Asia• World class port, rail road under

development

Hub of talent excellence• Labor and education market • Dedicated vocational training centers for

technicians, craftsmen, ...

World class infrastructure & living environment

• Real city infrastructure• Top of the line leisure and entertainment

infrastructure• KPIZ connects Abu Dhabi + Dubai

ConceptConcept

Commuters (Dubai)

Commuters (AD)

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Modular approach to realizing KPIZ

Master Plan

2011 2015

Port1

CBD: Residential, Commercial, Retail, Community

3

KPIZ: Area B (Downstream Manufacturing)

KPIZ: Area A (Basic Industries)

2

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Base Metals - Mid Stream Aluminum &

Non Ferrous(2.67 sqkm)

Chemicals (Container Glass, Flat Glass, Paper Mill, Others)

(4.98 sqkm)

Downstream Chemicals

(2.48 sqkm)

Base Metals –Steel

(1.49 sqkm)

Mixed Use (Engineered Metals)

(2.57 sqkm)

Clean Tech(3 sqkm)

Warehousing, Logistics, Business

District(3.85 sqkm)

Petrochemicals(9.57 sqkm)

Phase 1 - Development Plan

Base Metals – Upstream Aluminum,

EMAL (5.6 sqkm)

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Agenda

• About ADPC

• KPIZ Development Strategy

• The KPIZ Project

• Progress to Date

• Opportunities

20

Progress Update

Dredging & reclamation work commenced in November 2007 at a total cost of AED 5.5 billion

Port infrastructure design awarded in September 2007

Earthworks for the industrial zone commenced in April 2008 at a cost of AED 1.1 billion

Infrastructure and utilities design for the Industrial Zone will be completed in April 2009

A Joint Venture Agreement with JAFZA was signed in April 2008 for Trade & Logistics

A Joint Venture Agreement with DPW is in place to establish Emirates Port Company (EPC)

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Port Progress

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Industrial Zone Progress

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Agenda

• About ADPC

• KPIZ Development Strategy

• The KPIZ Project

• Progress to Date

• Opportunities

24

KPIZ implementation requirements create an array of opportunities

KPIZ requirementsKPIZ requirements

• Land incl. networks (road, power, water, etc.)

• Industrial, commercial residential and social real estate

• Electricity, gas, water, waste, and ICT

Land and basic infrastructure

Real estate

Utilities

Ass

ets

1

2

3

Logistics

Other services

Administrative/ government services

• 3PL logistics, warehouse leasing, transportation, etc.

• Licensing, registration, immigration, etc.

• Commercial services• Personal services

Ser

vice

s

4

5

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Labor

Raw material

Financing

• Recruiting and training

• Procurement of raw materials

• Equity financing, debt financing

Pro

du

ctio

n f

acto

rs 7

8

9

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Port3.2 km2

1

Khalifa Port

• 15M TEU total capacity• Construction in 5 phases until 2030 with

initial operations envisaged as of 2012

1

Khalifa Port and Industrial Zone (KPIZ)Abu Dhabi’s Unique Integrated Development Project

Area A51 km2

2B

2A

Industrial Zone

Basic Industries• Steel, aluminum

(incl EMAL), paper, flat glass, non-ferrous metals and petrochemical industry

• ~ 51km2

2A

Manufacturing Industries• 11 clusters

(eg, Clean tech, aerospace and defense, construction ...)

• ~ 112km2

Trade and Logistics • JV with JAFZA

2B

2C

2C

Area B367 km2

• Integrated development offering affordable living and balanced habitat

3ACBD

3BCommercial/ResidentialCommunities

3B

CBD

3A

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KPIZ will have significant impact along all major dimensions

• ~ 150,000 jobs (20,000 basic industries, 130,000 downstream manufacturing, trade & logistics)

• Including 47,000 highly-skilled positions (engineers, technicians, craftsmen, ...), many locally trained

Employment

Population • ~ 300,000 residents

Expected impact of KPIZ(2030)

GDP • $38 Billion

Exports• 60–80% of output for regional and global market• Leveraging KP's world-class logistics infrastructure (port, ...)

Know-how• Migration of international IP in key industries• Development of local technical and commercial skill base

Ripple effects• Substantial spillovers into Abu Dhabi economy (suppliers, trade,

SME development, ...)

Branding• Advancing Abu Dhabi's brand as world-class industrial hub and

attractive place to live

Estimated Investments

• $24 Billion

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Thank You