Future of industry: New automotive city planned for site west of Abu Dhabi

The proposed new automotive district targeting car makers and dealers will stretch over a 12 square kilometre site just west of Abu Dhabi island.

Plans for a major new auto hub in Abu Dhabi have been unveiled at the Global Manufacturing and Industrialisation Summit (GMIS).

Zones Corp, the body responsible for developing specialist economic zones in the emirate, said Rahayel City will contain space for automotive manufacturers, distributors, dealers and parts providers. It will stretch over 12 square kilometres of land.

Work has already started on the first phase of the project, which will involve a Dh1.6 billion outlay on its infrastructure. It is expected to be complete by the end of this year.

Utilities and other infrastructure will be provided to up to 1,800 plots that can be used as car showrooms, service centres, workshops, warehouses, auction houses and for other light industrial purposes.

New residential areas and public recreation facilities will also be built at the site, according to Zones Corp.

It said that Rahayel will be built about 12 kilometres west of Abu Dhabi island on a site chosen for its transport links.

It will be built alongside two major highways towards Al Ain and the Western Region, with its plans also incorporating fut­ure rail links.

Ahmed Ateeq Al Mazrouei, the executive director of the Rahayel City project, said the site would be “a significant contributor to the national economy not only as a regional investment destination but through the creation of skilled jobs for workers in all fields relating to the automotive industry”.

The UAE is not the only Gulf country weighing up a move into automotive manufacturing. The Saudi National Automobile Manufacturing Company signed a deal with South Korean manufacturer Daewoo to build a car making plant in the region two years ago. Last month, it agreed a separate deal to build an automotive cluster at the proposed new PlasChem Park being developed next to the U$20bn Sadara chemicals complex at Jubail Industrial City.

Follow The National's Business section on Twitter