ECONOMIC DEVELOPMENT - UAE Interact

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96 UNITED ARAB EMIRATES YEARBOOK 2006ECONOMIC DEVELOPMENT 97Free Zones and Commercial ClustersFOLLOWING ON FROM the development and steady expansion of the UAE's first free-trade zone at Jebel Ali, andthe success of other specialised zones that provide attractive facilities for both national and internationalinvestors, it has been clearly demonstrated that the free-zone formula is an effective magnet for inwardinvestment, bringing jobs, expertise and a significant boost to the national economy. The basic recipe (100%foreign ownership, corporate tax holidays, no personal taxes, freedom to repatriate capital and profits, noimport duties or currency restrictions) differs only slightly among the various zones whose comparative assetsare based more upon individual locations, facilities, areas of specialisation and, last but not least,establishment and operating costs. A list of current free zones and their main areas of activity is given below.JEBEL ALI FREE ZONEMajor Dubai base for warehousing and regional distribution by multinationalcompanies. Features manufacturing, trading and services companies includingmany global leaders.DUBAI AIRPORT FREE ZONEHigh tech, IT products, luxury items, jewellery, light industries, aviation industryrelated businesses.DUBAI INTERNET CITYPart of Dubai Technology and Media Free Zone (TECOM). Information technologyand telecommunications centre. Internet related businesses.DUBAI MEDIA CITYPart of TECOM. Market segments include publishing, broadcasting, film productionand post-production, media and marketing services, specialised media services,business and information services, music, new media and multimedia/Internet,leisure and entertainment, media support service and providers, business supportand consultancy services.DUBAI METALS & COMMODITIES CENTREGold, diamond and commodities trading, gold refining, manufacture of goldjewellery, gold trading, diamond exchange.GOLD & DIAMOND PARKDubai located retail and wholesale manufacture and trade in gold and diamondjewellery.KNOWLEDGE VILLAGEPart of TECOM in Dubai. Education and training hub, eLearningcontent/systems/service providers, international academic institutes andprogrammes, academic services and support providers, professional trainingcentres, management development centres, research and development centres,innovation centres, training and education freelancers.HAMRIYAH FREE ZONEMajor industrial zone in Sharjah serving companies involved in general industrialdevelopment, manufacturing, processing and assembling.SHARJAH AIRPORT INTERNATIONAL FREE ZONEImport of raw materials, manufacturing, processing, assembling, packaging andexporting the finished product. General trading and associated services.AJMAN FREE ZONEGeneral trading, professional services, industrial production.AHMED BIN RASHED FREE ZONELocated in Umm al-Qaiwain, catering for companies involved in general trading,management and consultancy services, light industrial production.RA’S AL-KHAIMAH FREE TRADE ZONEEnvironmentally friendly projects in the service, manufacturing and industrial sectors,with high emphasis placed on attracting technology oriented enterprises. Zone splitinto business, technology and industrial centres.FUJAIRAH FREE ZONEGeneral trading (import, export & re-export of agreed and specified commodities),manufacturing, warehousing.DUBAI HEALTH CARE CITYHealthcare industries and services. Healthcare professionals and service providers.DUBAI CARS & AUTOMOTIVE ZONERe-exporting used cars.DUBAI AID CITYLocal, regional and international, relief aid community donors, relief aid suppliersand organisations within the humanitarian value chain.DUBAI TECHNO PARKDubai located Technology Park. Key areas to include desalination, oil and gas,biotechnology, pharmaceuticals, agrotech and material science, university researchand technical services, engineering and R&D projects.DUBAI AUTO PARTS CITYAutomobile spare parts companies. Tyres, auto batteries, and accessories.DUBAI TEXTILE CITYTextile industry companies.HEAVY EQUIPMENT AND TRUCKS FREE ZONEA Dubai located zone dealing in re-exports of trucks and heavy equipment.DUBAI FLOWER CENTRE FREE ZONEHorticulture industry, global trade in flowers and perishables.DUBAI CARPET FREE ZONEHandmade carpet companies.DUBAI OUTSOURCE ZONEWill provide comprehensive infrastructure and environment for outsourcing firms toservice worldwide market.
98 UNITED ARAB EMIRATES YEARBOOK 2006government is in the process of revising local commercial and investment legislationto ensure that it complies with the requirements of the World Trade Organisation.Chambers of Commerce such as the Abu Dhabi Chamber of Commerce andIndustry (ADCCI) provide a host of other services to business people in the UAE,including libraries, information centres, business centres, legal services divisions,commercial conciliation and arbitration centres, business women’s councils andtraining institutes. The ADCCI has played a vital role in business growth in the UAE.Membership is on a steady climb with the total at the end of June 2005 reaching49,253, of which 32,994 were in the commercial category; 14,214 professional;1713 vocational and 332 involved with industry.But business growth is no longer focused exclusively on developments withinthe country. Whilst the Emirates have for many years invested a substantial portionof their wealth in international stock markets they have recently taken a moreproactive stance, investing not just their money, but also their management skillsand experience gained in one of the world’s fastest growing economies, to extendactivities of UAE-based companies beyond the shores of Arabia. In December2004 Dubai Port Authority purchased CSX Corp.’s Hong Kong internationalcontainer terminal business for US$1.15 billion. In June 2005 Etisalat, bought a26 per cent management stake in Pakistan Telecommunication Co. (PTC.KA).In July 2005 Jumeirah, a hotel unit of the Dubai government which operates eighthotels, including two in London and Dubai’s iconic Burj Al Arab, announced plansto spend Dh90 million to launch its new brand name that will target the luxuryhotel market presently served by companies such as Four Seasons Hotels Inc. (FS)and Singapore-listed Mandarin Oriental International (M04.SG). Jumeirah was alsoawarded the prestigious contract for management of the new Dubai Towers – Doha.The contract forms part of Jumeirah’s expansion strategy. Similar expansion hasoccurred in the oil industry with strategic purchases of exploration rights, operatingoil and gas companies, refineries and distribution networks.FREE ZONESFollowing on from the development and steady expansion of the UAE’s first freetradezone at Jebel Ali, and the success of other specialised zones that provideattractive facilities for both national and international investors, it has been clearlyestablished that the free-zone formula is an effective magnet for inward investment,bringing jobs, expertise and a significant boost to the national economy. The basicrecipe (100 per cent foreign ownership, corporate tax holidays, no personal taxes,freedom to repatriate capital and profits, no import duties or currency restrictions)differs only slightly among the various zones whose comparative advantages arebased more upon individual locations, facilities, areas of specialisation and, last butnot least, establishment and operating costs.
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