UAE – Al Rawabi, a leading dairy and juice company in UAE, plans to establish a US$177 million dairy production facility in Abu Dhabi’s Khalifa Industrial Zone.
The new Al Rawabi facility will initially be developed over two square kilometers, with an additional three-square kilometres planned for the future.
The dairy farm will be home to 10,000 cows and will include milk parlors, a dairy plant and a mechanic and maintenance workshop.
“We expect to produce 23m liters in the first operational year out of KIZAD, and to move approximately 1,000 containers of goods annually,” Al Rawabi CEO Prof Ahmed Tagani affirmed.
A feed factory, staff accommodation, and a biogas plant, along with fertilizer manufacturing amenities will also be located onsite to support the wider agriculture ecosystem in Abu Dhabi.
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.
Abdullah Al Hameli, head of EC&FZ, 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”.
Al Rawabi’s project expansion is timely as the demand for dairy products in the UAE has been rising due to the increasing young population, rising health-conscious consumers and strong per capita personal income.
A recent report by TechSci Research projected the UAE dairy products market which was valued at US$1.99 billion in 2020 to reach US$2.47 billion by 2026 at a CAGR of 6.89% by 2026.
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. ”
Al Rawabi also plans to use the new facility to further grow its market share in the UAE, GCC, and Africa.
The plant’s strategic location in KIZAD further supports this goal as it offers Al Rawabi a fully integrated trade and logistics platform to facilitate export across the emirates and the region.
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