KEZAD seals 50-year Galadari lease

Khalifa Economic Zones Abu Dhabi has signed a 50-year land lease agreement with Galadari Brothers’ Heavy Equipment Division to develop a large-scale logistics and distribution hub at KEZAD A in Al Ma’mourah, marking another long-term industrial commitment within Abu Dhabi’s flagship manufacturing and trade zone.

The agreement covers a 150,000 square metre plot and represents an investment of AED75 million by Galadari to establish a purpose-built facility for the storage and distribution of heavy machinery and industrial equipment. Construction is expected to move ahead in phases, with the site designed to serve contractors, infrastructure developers and industrial clients across the UAE and wider Gulf region.

KEZAD Group, part of AD Ports Group, has positioned the zone as a cornerstone of Abu Dhabi’s industrial diversification strategy. The new Galadari facility adds to a growing cluster of heavy industry, advanced manufacturing and logistics operators that have secured long-term leases within KEZAD A, reinforcing the zone’s role as an integrated platform linking ports, road networks and regional supply chains.

Senior executives from both organisations described the deal as a strategic step aligned with the emirate’s ambition to strengthen its industrial base. KEZAD officials said the partnership underlines continued demand for industrial land from established private sector groups seeking scale, infrastructure and regulatory stability over multi-decade horizons. Galadari representatives emphasised the importance of consolidating operations in a single, modern complex capable of handling specialised equipment, commercial vehicles and construction machinery sourced from international brands.

Galadari Brothers, a diversified business conglomerate with interests spanning automotive, engineering and media, has built a strong presence in the heavy equipment segment through dealership and distribution arrangements with global manufacturers. Its Heavy Equipment Division supplies commercial vehicles, earthmoving machinery and specialised construction equipment used in major infrastructure and real estate projects across the country. The new KEZAD facility is expected to streamline warehousing, pre-delivery inspection, spare parts management and after-sales support under one roof.

The development comes at a time when large-scale infrastructure activity in the UAE and neighbouring markets continues to generate steady demand for construction machinery and transport equipment. Government-backed projects in transport, energy, housing and industrial expansion have sustained equipment imports and fleet upgrades. Analysts tracking the sector note that long-term industrial leases in integrated zones offer operational efficiencies, particularly where proximity to deepwater ports and customs facilities reduces turnaround times and logistics costs.

KEZAD A, also known as Al Ma’mourah, forms part of a wider industrial ecosystem that connects directly to Khalifa Port and major highways linking Abu Dhabi to Dubai and the Northern Emirates. The zone provides investors with 100 per cent foreign ownership, competitive utility tariffs and streamlined licensing processes. Over the past decade, it has attracted investments across metals, polymers, food processing, pharmaceuticals and logistics, supported by large anchor projects and government-backed infrastructure.

Industry observers view the 50-year tenure as significant, reflecting confidence in long-term industrial demand and policy continuity. Multi-decade land leases allow operators to amortise capital expenditure over extended periods, justify investment in specialised buildings and secure financing on favourable terms. For KEZAD, such agreements underpin predictable revenue streams while deepening tenant commitment to the zone.

Galadari’s planned facility is expected to incorporate modern warehousing standards, including high-capacity storage areas for oversized machinery, dedicated loading bays and advanced inventory systems. Executives have indicated that the complex will support both domestic distribution and re-export activity, leveraging the UAE’s position as a regional trade hub. The integration of spare parts storage and service capabilities is intended to enhance turnaround times for clients operating in time-sensitive construction and industrial environments.

AD Ports Group has expanded its industrial and logistics footprint steadily, reporting growth in cargo volumes, port throughput and economic zone occupancy in its latest financial disclosures. The addition of new long-term tenants such as Galadari strengthens the group’s industrial portfolio and aligns with broader national objectives to increase non-oil economic contribution and private sector participation.