TA'ZIZ awards US $1.7bn contract for the UAE's first methanol plant
Infrastructure TA'ZIZ awards US $1.7bn contract for the UAE's first methanol plant
By
Scheduled for completion in 2028, the plant will operate using clean energy from the grid
TA'ZIZ has awarded a US $1.7bn engineering, procurement, and construction (EPC) contract to SAMSUNG E&A for the development of one of the world's largest methanol plants in Al Ruwais Industrial City, in Abu Dhabi's Al Dhafra region. Scheduled for completion in 2028, the plant will operate using clean energy from the grid, making it one of the most energy-efficient methanol production facilities globally.
The project marks a significant step in TA'ZIZ's efforts to support the UAE's economic diversification by establishing new domestic chemical value chains. The facility, with a production capacity of 1.8-million tonnes per annum (mtpa), will be the first methanol manufacturing plant in the UAE.
Mashal Saoud Al-Kindi, CEO of TA'ZIZ stated, 'This major EPC contract award represents a crucial milestone in fulfilling TA'ZIZ's vision to drive industrial growth in the UAE by developing a large-scale integrated chemicals ecosystem in the Al Dhafra region. The plant will reinforce the UAE's leadership in sustainable chemicals production and further TA'ZIZ's contribution to ADNOC's global ambition in the chemicals sector.'
Hong Namkoong, President and CEO of SAMSUNG E&A commented, 'SAMSUNG E&A is privileged to receive this recognition, reflecting both our and TA'ZIZ's dedication to industrial innovation, economic diversification, and sustainable growth in the UAE. This achievement highlights the impact of collaboration in establishing world-class facilities that will position the UAE as a key global player in advanced methanol production.'
During its initial phase, TA'ZIZ aims to produce 4.7mtpa of chemicals by 2028, including methanol, low-carbon ammonia, polyvinyl chloride (PVC), ethylene dichloride, vinyl chloride monomer, and caustic soda. Many of these chemicals will be produced domestically for the first time, aligning with TA'ZIZ's strategic objective to expand the UAE's chemical value chain and promote economic diversification through industrial growth.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
4 hours ago
- Arabian Post
GCC Banks Accelerate Toward USD‑Denominated AT1 Sukuk Surge
Sharjah Islamic Bank and Warba Bank have spearheaded a flurry of USD‑denominated Additional Tier 1 sukuk issuances across the Gulf Cooperation Council, as institutions capitalise on narrower spreads, robust investor demand and abundant liquidity to bolster capital under Basel III norms. Sharjah Islamic priced a US$500 million perpetual issuance with a six‑year non‑call period at 6.125%, tightening from initial guidance of 6.5%, after books exceeded US$1 billion. Simultaneously, Kuwait's Warba Bank concluded a US$250 million AT1 sukuk issuance, re‑offering at a 6.25% yield—also tightened from initial guidance of 6.5%. The instrument, based on a perpetual structure with a 5.5‑year non‑call window, follows Warba's major equity move: the acquisition of a 32.75% stake in Gulf Bank from Alghanim Trading and a KWD 436.7 million rights issuance completed in April. Sharjah Islamic Bank's listing on Nasdaq Dubai marks its fifth sukuk issuance, raising its total sukuk portfolio on the exchange to US$2.5 billion. The deal attracted strong interest from regional and international investors, reinforcing Dubai's growing role as a nexus for Islamic capital. The transaction's pricing depth, with a reset spread of 195.6 basis points—125.7 bps tighter than its 2019 equivalent—highlights an improved cost of capital. ADVERTISEMENT Analysts attribute this wave of AT1 issuances to an increasingly mature Islamic fixed‑income market. GCC banks are under pressure to meet Basel III capital thresholds while tapping investor appetite for Sharia‑compliant instruments amid a global shift towards ethical finance. The depth and oversubscription observed signal confidence in GCC financial stability and growth trajectories. Banking insiders view Sharjah Islamic's move as emblematic of a broader trend. Its programme is now a benchmark in AT1 pricing within the Islamic sukuk arena, and the issuance is being seen as a signpost to other regional banks eyeing capital diversification. Global Capital, a financial news provider, has reported that Warba's issuance helped catalyse the broader GCC AT1 market, with Saudi banks preparing similar deals. Warba Bank's issuance was structured via Warba Tier 1 Sukuk Limited, and it is dual‑listed on the London Stock Exchange's International Securities Market and Nasdaq Dubai. The sukuk follows a Mudaraba structure and was syndicated by joint global coordinators and bookrunners including Emirates NBD Capital, Standard Chartered, Abu Dhabi Commercial Bank and HSBC. The financial backdrop has been supportive: increasing liquidity in global markets, stable benchmark yields in the US, and sustained inflows into Islamic finance vehicles. Sharjah Islamic underscores its confidence in long‑term strategy, stating the issuance supports its capital base aligned with Basel III standards . Meanwhile, Warba's move is synchronised with its stake acquisition in Gulf Bank, reflecting a broader expansion and capital optimisation strategy. Investor sentiment continues to favour GCC issuers. Demand for Sharia‑compliant fixed‑income paper is rising, particularly from European institutional investors and Islamic funds, seeking diversification. Sharjah's issuance was oversubscribed by over two‑times its size, with participation spanning the GCC, Europe and Asia. Gulf markets are responding in kind: Saudi banks are preparing their own AT1 sukuk to finalise in the coming months, encouraged by the positive reception to these pricings.
Khaleej Times
5 hours ago
- Khaleej Times
Oman to hold next round of US-Iran nuclear talks on June 15 amid regional tensions
The sixth round of US-Iran nuclear talks will be held on Sunday in Muscat, the Omani foreign minister said on Thursday, after US President Donald Trump reiterated that Tehran would not be allowed to have a nuclear weapon. Trump said on Wednesday US personnel were being moved out of the Middle East because "it could be a dangerous place". Reuters reported earlier that the US was preparing an evacuation of its Iraqi embassy and would allow military dependents to leave locations around the Middle East due to heightened security risks in the region, according to US and Iraqi sources. The four US and two Iraqi sources did not say what security risks had prompted the decision. Reports of the potential evacuation pushed up oil prices by more than 4 per cent before prices eased on Thursday. Foreign energy companies were continuing their operations as usual, a senior Iraqi official overseeing operations in southern oilfields told Reuters on Thursday. A US official said the State Department had authorised voluntary departures from Bahrain and Kuwait. The State Department updated its worldwide travel advisory on Wednesday evening to reflect the latest US posture. "On June 11, the Department of State ordered the departure of non-emergency US government personnel due to heightened regional tensions," the advisory said. The decision by the US to evacuate some personnel comes at a volatile moment in the region. Trump's efforts to reach a nuclear deal with Iran appear to be deadlocked and US intelligence indicates that Israel has been making preparations for a strike against Iran's nuclear facilities. "They are being moved out because it could be a dangerous place, and we'll see what happens," Trump told reporters. "We've given notice to move out." Asked whether anything could be done to lower the temperature in the region, Trump said: "They can't have a nuclear weapon. Very simple, they can't have a nuclear weapon." Trump has repeatedly threatened to strike Iran if stuttering talks over its nuclear programme fail and in an interview released earlier on Wednesday said he was growing less confident that Tehran would agree to stop enriching uranium, a key American demand. While the evacuation of non-essential personnel raised concerns about a possible regional escalation, a senior Iranian security official told Iran's Press TV on Thursday that US military dependents leaving did not constitute a threat. Shipping warning On Wednesday, Iran's defence minister warned Washington that Tehran would hit US regional bases if drawn into a war in the case of nuclear talks failing. The United States has a military presence across the major oil-producing region, with bases in Iraq, Kuwait, Qatar, Bahrain and the United Arab Emirates. US Defense Secretary Pete Hegseth had authorized the voluntary departure of military dependents from locations across the Middle East, a US official said. Another US official said that was mostly relevant to family members located in Bahrain — where the bulk of them are based. On Wednesday Britain's maritime agency warned that increased tensions in the Middle East might lead to an escalation in military activity that could impact shipping in critical waterways. It advised vessels to use caution while travelling through the Gulf, the Gulf of Oman and the Straits of Hormuz, which all border Iran. Tensions inside Iraq have heightened since the start of the war in Gaza in October 2023, with Iran-aligned armed groups in the country repeatedly attacking US troops, though attacks have subsided since last year.
Arabian Post
5 hours ago
- Arabian Post
Dubai Sets Record with Blockchain-Powered Property Sell-Out
Arabian Post Staff -Dubai Dubai Land Department's second tokenised property offering was fully subscribed in just one minute and 58 seconds, marking the fastest-ever blockchain-backed real estate transaction globally. The project, made available through the PRYPCO Mint platform, attracted 149 investors across 35 nationalities, while more than 10,700 others joined a waitlist to participate. The speed of uptake underscores growing trust in digital property ownership within the emirate's broader Property Tokenization Initiative. The feature property—a one‑bedroom apartment in Kensington Waters on Mohammed Bin Rashid City—was valued at AED 1.5 million, discounted from an estimated AED 1.875 million. Fractional ownership began at AED 2,000, enabling micro‑investing in prime Dubai real estate. This landmark offering followed an inaugural tokenisation in May 2025, which sold out within 24 hours, suggesting escalating global appetite for fractional property investments. ADVERTISEMENT PRYPCO Mint is jointly operated by the Dubai Land Department and PRYPCO, under a regulatory framework accredited by the Virtual Asset Regulatory Authority, the UAE Central Bank, and Dubai Future Foundation within the Real Estate Sandbox initiative. The blockchain infrastructure is built by Ctrl Alt on the XRP Ledger and supported by Zand Digital Bank, ensuring tokens align with official title deeds. Market data indicates robust momentum behind this pivot to tokenisation. In May, Dubai recorded total real estate sales of AED 66.8 billion, a 44 per cent increase year-on-year. The surge was driven by a 314 per cent rise in primary sales, with experts citing tokenisation as a catalyst for further growth. Scott Thiel, CEO of Tokinvest, observed that 'tokenisation will not just accompany the next record, we believe, it will help drive it,' signalling strong confidence in the emerging asset class. Dubai's roadmap for tokenised real estate charts transformative ambitions. The DLD estimates that by 2033 tokenised assets could account for 7 per cent of the city's total real estate market—equivalent to roughly US$16 billion. The first offering had drawn 224 investors from over 40 countries, with certificates of ownership now logged on the blockchain to ensure legal validity. Industry insiders have noted the implications across the investment ecosystem. Zaher El Orm, a blockchain advocate in Dubai, commented that the asset 'sold out in less than two minutes … with an average investment of around AED 10,000, a clear demonstration of the market's appetite for on‑chain, fractional property investment,' adding that title certifications were issued within hours. Earlier in the year, DAMAC Group—one of the UAE's major developers—agreed to tokenize its assets worth US$1 billion via the MANTRA platform, reinforcing Dubai's ambition to become a global digital assets hub. This aligns with regulatory updates from VARA in May extending tokenisation frameworks to real-world assets, bolstering transparency and operational efficiency. Dubai Land Department and PRYPCO are now preparing to expand PRYPCO Mint's offerings, encouraging investors to register early. Future phases aim to include international participants and onboard additional developers, scaling the initiative beyond its pilot phase. Tokenisation is reshaping Dubai's real estate landscape. By lowering barriers to entry, increasing liquidity, and embedding ownership in blockchain-secured records, Dubai is forging a path toward a digitally enabled property market that caters to both local and global investors. As the platform extends its reach, tokenised offerings may soon become a mainstream vehicle for property investment.
