TA’ZIZ has secured $2 billion (AED7.34 billion) in financing for the UAE’s first world-scale methanol production plant, marking a major step forward in Abu Dhabi’s industrial expansion strategy and broader ambitions to strengthen domestic manufacturing capabilities.
The financing, announced during the Make it in the Emirates 2026 forum, was completed by TA’ZIZ Methanol Company, a joint venture between TA’ZIZ and Proman, for the facility being developed in Al Ruwais Industrial City.
According to the company, the financing transaction was significantly oversubscribed, reflecting strong investor confidence in Abu Dhabi’s industrial ecosystem and the long-term demand outlook for methanol and related chemical products.
The package includes a five-year $1.8 billion conventional syndicated loan alongside a $200 million Islamic financing facility, bringing together 11 regional, European, and Asian financial institutions.
Sumitomo Mitsui Banking Corporation acted as exclusive financial adviser, while Abu Dhabi Commercial Bank and First Abu Dhabi Bank served as bookrunners and mandated lead arrangers for the financing.
Mashal Saoud Al-Kindi said the financing represents a defining milestone for the company and Abu Dhabi’s industrial growth ambitions.
“The strong global demand for this transaction reflects our disciplined execution, the strength of our partnerships, and the long-term fundamentals of the Ruwais industrial ecosystem,” he said.
The methanol project forms part of the UAE’s broader strategy to expand its downstream chemicals and industrial manufacturing sectors as the country seeks to diversify beyond hydrocarbons.
Methanol is widely used in the production of chemicals, plastics, construction materials, and industrial applications, while demand is also rising for its use as a lower-emission fuel alternative in shipping and power generation.
David Cassidy said the project strengthens Abu Dhabi’s positioning within the global methanol market.
“The strong interest in this transaction underscores market confidence in methanol’s growth trajectory, both as a key chemical and as a cleaner-burning fuel for transportation and power generation,” he said.
The financing follows several major milestones for the project, including final investment decisions by ADNOC, TA’ZIZ, and Proman, as well as the award of the engineering, procurement, and construction contract to Samsung E&A Co. Ltd.
Construction of the facility is currently underway, with completion targeted for 2028.
Once operational, the plant is expected to support the development of a domestic chemicals value chain within the UAE, enabling local manufacturing capabilities and strengthening Abu Dhabi’s position as a regional industrial and export hub.
The project also aligns closely with the goals of the Make it in the Emirates initiative, which aims to attract industrial investment, increase local manufacturing output, and convert investor confidence into large-scale production capacity across strategic sectors.
The financing announcement comes amid accelerating industrial investment across the Gulf region, where governments are increasingly prioritizing advanced manufacturing, chemicals, and energy transition infrastructure as part of long-term economic diversification strategies.
With inputs from WAM
