Khalifa Port & Industrial Zone Abu Dhabi Ports Company Abu Dhabi Economic Forum Abu Dhabi, 2-3 March, 2009

1 Agenda About ADPC KPIZ Development Strategy The KPIZ Project Progress to Date Opportunities

2 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

3 Agenda About ADPC KPIZ Development Strategy The KPIZ Project Progress to Date Opportunities

4 The Landscape

5 The Approach: From Vision to Business Plan Abu Dhabi long term development agenda 'Abu Dhabi 2030' KPIZ vision, strategy, and competitive positioning Implemen- tation requirements for 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 setup Basic industries 'Area A' Downstream industries 'Area B' KPIZ strategic sectors KPIZ conceptual development plan Building blocks Context and vision KPIZ business plan Financial plan Macroeco- nomic plan Implemen- tation roadmap Zone development Commercial development Business plan

6 AD government agenda on economic transformation Summary 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 areas Long term objectives Core

7 Education Healthcare services Trade Construction and engineering Transportation and logistics Enabling industries AD economic plan 2030: Diversification as key thrust Manufacturing as major force of diversification  KPIZ as hub for manufacturing Healthcare equipment Metals and Mining (Petro-)Chemicals Aerospace and defense Energy, oil and gas Focus industries Manufacturing Pharma, biotech and life science Food and Beverage Electrical equipment and machinery Basic industries Downstream industries Construction materials Financial services Telecommunication services Tourism (Hotels, restaurants and leisure) Services Media and Information

8 Abu Dhabi targets 8.5% p.a. growth from non-oil GDP KPIZ to be a major contributor (USD B) Source: UAE interact; UAE Statistical Yearbook 2008; BCG analysis Total Oil GDP (%) Total Non-Oil GDP (%) CAGR (2005–30) (%) Oil sectorNon-oil sector CAGR 6.7% KPIZ to significantly contribute to non-oil sector GDP growth Abu Dhabi real GDP development projection

9 By 2030, KPIZ will be a major contributor to Abu Dhabi 36% 55% 9% 1 $416B % GDP AD oil GDP AD non-oil GDP KPIZ $180B Exports 2 Abu Dhabi KPIZ 92% 8% 91% 9% 3.1M Population Rest of AD KPIZ 3 Share of KPIZ in Abu Dhabi KPIZ contributes 9% to total GDP and 14% to non-oil GDP 2. Including oil exports 3. Population living in KPIZ

10 Agenda About ADPC KPIZ Development Strategy The KPIZ Project Progress to Date Opportunities

11 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 industry products 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

12 Khalifa Port Reclaimed offshore island located 4.6km from shore 12km long approach channel with 16m deep harbor 5 development phases till km 2 onshore area Phase 1 (Operational mid 2012) –3.4km 2 port island –Capacity: 2M TEUs, 5M Tons various cargo and 110k cars Final Phase (2030) –15km 2 port island –Capacity: 15M TEUs, 45M tons various cargo and 310k cars –26km quay walls and berth

13 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 KPIZ B 1 2 Bubble size Why should AD/KPIZ be interested in a specific industry sector? Macroeconomic impact Knowledge development in AD Environmental impact Image builder Attractiveness for Abu Dhabi A x-axis Why should a company be interested in setting up in KPIZ? Cost advantage Access to sizable fast-growing market Leveraging unique KPIZ business environment 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? Attractiveness for ADPC D 4

14 Major strategic industries identified for the Industrial Zone Basic and downstream industries Petro- chemicals Aluminum Steel Glass Paper Basic industry Chemical products cluster Engineered metal products cluster Paper, printing and packaging products cluster Construction industry cluster (construction products, construction companies) Commercial trans- portation equipment cluster Electrical equipment cluster (including household appliances) Aerospace and defense cluster Clean tech cluster Machinery and equipment cluster Downstream Nutrition and health cluster (food and beverage, pharma- ceuticals) Other manufactur- ing Trading & logistics (JVCO) 11 12

15 Value proposition CBD center RetailCommunity Commercial Residential Port Basic industries Down- stream industries Maritime cluster Offices Logistics Privileged access to competitively priced feedstock Aluminum, steel, petrochemicals, glass, paper Unique 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 Concept Commuters (Dubai) Commuters (AD)

16 Modular approach to realizing KPIZ Master Plan Port 1 CBD: Residential, Commercial, Retail, Community 3 KPIZ: Area B (Downstream Manufacturing) KPIZ: Area A (Basic Industries) 2

17 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)

18 Agenda About ADPC KPIZ Development Strategy The KPIZ Project Progress to Date Opportunities

19 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)

20 Port Progress

21 Industrial Zone Progress

22 Agenda About ADPC KPIZ Development Strategy The KPIZ Project Progress to Date Opportunities

23 KPIZ implementation requirements create an array of opportunities KPIZ 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 Assets Logistics Other services Administrative/ government services 3PL logistics, warehouse leasing, transportation, etc. Licensing, registration, immigration, etc. Commercial services Personal services Services Labor Raw material Financing Recruiting and training Procurement of raw materials Equity financing, debt financing Production factors 7 8 9

24 Port 3.2 km 2 1 Khalifa Port 15M TEU total capacity Construction in 5 phases until 2030 with initial operations envisaged as of Khalifa Port and Industrial Zone (KPIZ) Abu Dhabi’s Unique Integrated Development Project Area A 51 km 2 2B 2A Industrial Zone Basic Industries Steel, aluminum (incl EMAL), paper, flat glass, non-ferrous metals and petrochemical industry ~ 51km 2 2A Manufacturing Industries 11 clusters (eg, Clean tech, aerospace and defense, construction...) ~ 112km 2 Trade and Logistics JV with JAFZA 2B 2C Area B 367 km 2 Integrated development offering affordable living and balanced habitat 3A CBD 3B Commercial/ Residential Communities 3B CBD 3A

25 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

26 Thank You