Khalifa Port & Industrial Zone Abu Dhabi Ports Company

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

2. Agenda

3. The Company — Abu Dhabi Ports Company (ADPC) Establishment Mission • 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

4. Agenda

5. The Landscape

6. The Approach: From Vision to Business Plan Context and vision Building blocks ADPC setup Business plan KPIZvision, strategy, and competitive positioning • KPIZ business plan • Financial plan • Macroeco- nomic plan • Implemen-tation • roadmap • Zone development • Commercial development Abu Dhabi long term development agenda 'Abu Dhabi 2030' • 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 KPIZ strategic sectors • Basicindustries • 'Area A' • Downstreamindustries • 'Area B' KPIZ conceptualdevelopment plan

7. Build a sustainable economy Ensure a balanced social and regional economic development approach that brings benefits to all AD government agenda on economic transformationSummary Policy priority areas Long term objectives Maintain strong GDP growth momentum 1 Core Reduce GDP volatility through diversification 2 Stimulate exports to link AD into non-oil trade streams 3 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 opportunitiesfor all" Enlarge enterprise base by enhancing private sector 4 Enhance competitiveness and improve productivity 5 Develop an open, globally integrated business environment 6 Develop a highly skilled and highly productive workforce 7 Attract skilled workforce from abroad 8 Develop a sufficient infrastructure to support economic growth 9 Ensure environmental sustainability 10

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

9. Abu Dhabi targets 8.5% p.a. growth from non-oil GDPKPIZ to be a major contributor KPIZ to significantly contribute to non-oil sector GDP growth Abu Dhabi real GDP development projection (USD B) CAGR(2005–30) (%) 416 CAGR 6.7% 300 8.5 231 168 119 78 4.7 Total Oil GDP (%) 59 56 50 45 40 36 Total Non-Oil GDP (%) 41 44 50 55 60 64 Oil sector Non-oil sector Source: UAE interact; UAE Statistical Yearbook 2008; BCG analysis

10. By 2030, KPIZ will be a major contributor to Abu Dhabi $180B 3.1M 91% Rest of AD 92% Abu Dhabi 9% KPIZ3 8% KPIZ Exports2 Population Share of KPIZ in Abu Dhabi 2030 % $416B 100 36% AD oil GDP 80 60 40 55% AD non-oil GDP 20 9%1 KPIZ 0 GDP 1. KPIZ contributes 9% to total GDP and 14% to non-oil GDP 2. Including oil exports 3. Population living in KPIZ

11. Agenda

12. Port and basic industries as anchors of KPIZ Value-added products taking basic industryproducts downstream Light Manufacturing Support services to basic industries and light manufacturing (commercial, logistics, ...) Logistics & Services Businesses choosing KPIZ as preferred location regardless of links to KPIZ Offices/Commercial Urban living Urban living offering (residential real estate, shopping, leisure/entertainment, ...) Time Initial anchor Port Aluminium, steel, chemical, glass, paper as heavy industry anchors Basic industries

13. Khalifa Port • Reclaimed offshore island located 4.6km from shore • 12km long approach channel with 16m deep harbor • 5 development phases till 2030 • 4 km2 onshore area • Phase 1 (Operational mid 2012) • 3.4km2 port island • Capacity: 2M TEUs, 5M Tons various cargo and 110k cars • Final Phase (2030) • 15km2 port island • Capacity: 15M TEUs, 45M tons various cargo and310k cars • 26km quay walls and berth

14. Industrial Zone: Four dimensions for sector prioritization Why should ADPC be interested in a specific industry sector? Bubble color y-axis D Attractiveness for ADPC • ADPC revenue potential • ADPC capital intensity • Type of customers • Environmental footprint 1 Why should a company be interested in setting up in KPIZ? 2 3 4 Attractiveness of KPIZ for investors C Bubble size x-axis • Cost advantage • Access to sizable fast-growing market • Leveraging unique KPIZ business environment 1 2 Why should AD/KPIZ be interested in a specific industry sector? How much capital could be invested in each sector? 3 A B Attractiveness for Abu Dhabi Size of sector in KPIZ • Macroeconomic impact • Knowledge development in AD • Environmental impact • Image builder • No. of potential investors • Avg. investment of industry 1 1 2 2 3 4

15. Major strategic industries identified for the Industrial Zone Basic and downstream industries Downstream Chemical products cluster Construction industry cluster (construction products, construction companies) Commercial trans- portation equipment cluster Machinery and equipment cluster Electrical equipment cluster (including household appliances) Aerospace and defense cluster Clean tech cluster Nutrition and health cluster (food and beverage, pharma-ceuticals) Other manufactur-ing 1 4 5 6 7 8 9 10 11 Engineered metal products cluster 2 Paper, printing and packaging products cluster 3 Trading & logistics (JVCO) 12 Basic industry Petro- chemicals 1 Aluminum 2 Steel 3 Glass 4 Paper 5

16. Unique offering • Privileged access to competitively priced feedstock • Aluminum, steel, petrochemicals, glass, paper • Highly integrated setup ('seamless') • Heavy industries supporting downstream manufacturing clusters • Downstream manufacturing + services • Industrial zone + urban living Port Commuters (Dubai) Offices Down- stream industries • Easy access to major regional and international markets • Hub for GCC, Africa, South Asia • World class port, rail road under development Basic industries • Hub of talent excellence • Labor and education market • Dedicated vocational training centers for technicians, craftsmen, ... Logistics Maritime cluster Commuters (AD) • World class infrastructure & living environment • Real city infrastructure • Top of the line leisure and entertainment infrastructure • KPIZ connects Abu Dhabi + Dubai Value proposition Concept Retail Community CBD center Commercial Residential

17. CBD: Residential, Commercial, Retail, Community 3 KPIZ: Area B (Downstream Manufacturing) KPIZ: Area A (Basic Industries) 2 Port 1 Modular approach to realizing KPIZ Master Plan 2011 2015

18. Phase 1 - Development Plan Base Metals – Upstream Aluminum, EMAL (5.6 sqkm) Base Metals –Steel (1.49 sqkm) Base Metals - Mid Stream Aluminum & Non Ferrous (2.67 sqkm) Petrochemicals(9.57 sqkm) Chemicals (Container Glass, Flat Glass, Paper Mill, Others) (4.98 sqkm) Mixed Use (Engineered Metals)(2.57 sqkm) Downstream Chemicals(2.48 sqkm) Clean Tech (3 sqkm) Warehousing, Logistics, Business District(3.85 sqkm)

19. Agenda

20. 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)

21. Port Progress

22. Industrial Zone Progress

23. Agenda

24. KPIZ implementation requirements create an array of opportunities KPIZ requirements • Land incl. networks (road, power, water, etc.) Land and basic infrastructure 1 • Industrial, commercial residential and social real estate Real estate Assets 2 • Electricity, gas, water, waste, and ICT Utilities 3 • 3PL logistics, warehouse leasing, transportation, etc. Logistics 4 Administrative/ government services • Licensing, registration, immigration, etc. Services 5 • Commercial services • Personal services Other services 6 • Recruiting and training Labor 7 • Procurement of raw materials Raw material Production factors 8 • Equity financing, debt financing Financing 9

25. Industrial Zone CBD • Basic Industries • Steel, aluminum (incl EMAL), paper, flat glass, non-ferrous metals and petrochemical industry • ~ 51km2 • Khalifa Port • 15M TEU total capacity • Construction in 5 phases until 2030 with • initial operations envisaged as of 2012 • Integrated development offering affordable living and balanced habitat 1 3A 2A Port 3.2 km2 1 CBD • Manufacturing Industries • 11 clusters (eg, Clean tech, aerospace and defense, construction ...) • ~ 112km2 • Trade and Logistics • JV with JAFZA 2B Area A 51 km2 3B 2A Commercial/Residential Communities 3A 2C 3B 2B Area B 367 km2 2C Khalifa Port and Industrial Zone (KPIZ)Abu Dhabi’s Unique Integrated Development Project

26. KPIZ will have significant impact along all major dimensions Population • ~ 300,000 residents • ~ 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 GDP • $38 Billion Expected impact of KPIZ (2030) • 60–80% of output for regional and global market • Leveraging KP's world-class logistics infrastructure (port, ...) Exports • Migration of international IP in key industries • Development of local technical and commercial skill base Know-how • Substantial spillovers into Abu Dhabi economy (suppliers, trade, SME development, ...) Ripple effects • Advancing Abu Dhabi's brand as world-class industrial hub and attractive place to live Branding • $24 Billion Estimated Investments

27. Thank You