Abu Dhabi state-owned Chemicals Derivatives Company (TA'ZIZ) and Indian conglomerate Reliance Industries have agreed to start a more than $2 billion chemical production partnership in Ruwais, Abu Dhabi, TA'ZIZ said in a statement on Tuesday.
The JV aims to export the materials to target markets in Southeast Asia and Africa as well as selling them domestically.
"Representing the first production of these chemicals in the UAE, the project will enable the substitution of imports and the creation of new local value chains, while also meeting growing demand for these chemicals globally," TA'ZIZ said.
TA'ZIZ was formed last year, also as a joint venture, by Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi state-owned holding company ADQ, which own 60% and 40% respectively.
"India's need for PVC to propel its growth, and the value from the abundantly available feedstock in UAE, provides a win-win partnership for both companies," TA'ZIZ quoted Reliance's billionaire chairman Mukesh Ambani as saying.
TA'ZIZ said in November last year it had chosen potential investment projects worth over $5 billion in the planned Ruwais Derivatives Park, for the development of which the JV is meant to act as a catalyst.
The project is Reliance's first investment in the MENA region, TA'ZIZ said.
Reliance Industries, India's most valuable company, said last month it had decided with Saudi Aramco to reevaluate the oil giant's proposed roughly $15 billion investment in Reliance's oil-to-chemicals business.
The investment was announced in 2019 but was delayed as oil prices crashed due to the pandemic.
The company will continue to be Aramco's preferred partner for private sector investments in India and will collaborate with Saudi Aramco and SABIC for investments in Saudi Arabia, Reliance added at the time.
Ambani said in late June the company had hoped to formalise its partnership with Aramco this year.