Abu Dhabi Ports has signed a mustaha agreement with the National Catering Company (NCC) Group of Companies to secure and develop land in the emirate?s Khalifa Industrial Zone (Kizad)
According to law firm Al Tamimi & Co, a mustaha agreement creates a real property right, which entitles its holder to construct a building or to invest in, mortgage, lease, sell, or purchase a plot of land belonging to a third party for a period of up to 50 years, provided that such acts do not contravene any Executive Council resolutions. This right is renewable once by mutual consent of the parties for a further period of up to 50 years.
Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports, said, ?With NCC, we welcome another strong business partner to Khalifa Industrial Zone. By locating its new facilities in Kizad, NCC will be able to optimise its distribution activities and maximise supply chain efficiencies as a direct result of the industrial zone?s excellent infrastructure and intermodal transportation networks.?
Based on the agreement, NCC Group of Companies will be secured a 25,000 sqm plot of land in Kizad to establish a central production unit, laboratories, warehouse as well as new headquarters. The company will invest US$13mn for the development, stated NCC officials.
The new facility will allow NCC to expand its food processing business and catering services. The company aims to triple its storage capacity at Kizad through a warehouse. The upcoming facility will be used as an online delivery platform to enhance customer experience.
The Kizad plant is expected to commence operations by Q4 2016, confirmed officials from Abu Dhabi Ports.
NCC officials are hopeful that the location of the new facility (at Taweelah, which lies between Abu Dhabi and Dubai) would significantly enhance the company?s reach in both emirates and strengthen the company?s market position.