TA'ZIZ secured US$2 billion financing for the UAE’s first world-scale methanol plant, supporting industrial growth, exports, and economic diversification.
TA'ZIZ Methanol Company, a joint venture between TA'ZIZ and Proman, has successfully secured 2 billion (AED7.34 billion) in financing for the construction of the UAE's inaugural world-scale methanol plant. Announced at the Make it in the Emirates 2026 forum, this financial close marks a significant step in Abu Dhabi's industrial expansion and the UAE's economic diversification strategy. The financing package, which was notably oversubscribed, comprises a 1.8 billion conventional syndicated loan and a $200 million Islamic facility, both structured in line with international benchmarks and backed by 11 leading financial institutions from across the globe. Sumitomo Mitsui Banking Corporation (SMBC) served as the exclusive financial advisor, with Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB) acting as bookrunners and mandated lead arrangers.
The project's robust credit profile and the strong global confidence in TA'ZIZ's strategy, coupled with the long-term fundamentals of Abu Dhabi's industrial growth platform, underpinned the successful financing. Proman's Chief Executive, David Cassidy, also highlighted the market's confidence in methanol's increasing importance as both a crucial chemical and a cleaner-burning fuel.
Further solidifying the project's progression, TA'ZIZ awarded a $1.7 billion (AED6.2 billion) Engineering, Procurement, and Construction (EPC) contract to Samsung E&A for the plant's development. Located in Al Ruwais Industrial City, the facility is designed to produce 1.8 million tonnes per annum (mtpa) of methanol and is slated for completion in 2028. A key environmental aspect of the plant is its reliance on clean energy from the grid, positioning it as one of the most energy-efficient methanol production facilities globally.
The establishment of this methanol plant is a cornerstone of the UAE's broader economic diversification efforts, aiming to unlock new domestic chemical value chains and foster industrial growth. It aligns with TA'ZIZ's strategic objective to expand the local chemicals value chain and supports ADNOC's ambition to become a leader in the chemicals sector. The overarching TA'ZIZ Industrial Chemicals Zone is projected to produce 4.7 mtpa of various chemicals by 2028, many of which will be produced for the first time in the UAE, thereby enhancing the nation's industrial self-sufficiency and bolstering its position in sustainable chemicals production.
The project's long-term viability is further reinforced by 28.5 billion (AED104.6 billion) worth of long-term agreements signed by TA'ZIZ for offtake, feedstock, and sales across its diverse chemicals portfolio, including methanol. These agreements, spanning five to 25 years, secure global demand and ensure reliable local feedstock supply, leveraging local resources to strengthen domestic value chains and create enduring economic value, jobs, and supply-chain resilience for the UAE. Notable partnerships include a 25-year natural gas supply agreement with ADNOC Gas for the methanol project, valued at over 5 billion, and a 20-year salt supply agreement with Sama Salt. Sales agreements for methanol are in place with ADNOC and Proman, alongside other international partners for various chemicals.
