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UAE FTZ hope to cash in on India Inc.
Friday, 17 December 2004, 20:30 IST
MUMBAI: The free trade zones in the United Arab Emirates (UAE) - with modern infrastructure, tax incentives and liberal policies - hope more Indian companies will set up shop there as a preferred investment destination.
Although a large number of Indian companies, representing a wide spectrum of industrial sectors, have already set up operations in these zones in the past few years, UAE authorities expect the move to gain momentum in the days ahead.
Apart from the UAE's strategic location between Europe and Asia, the free trade zones also give businesses an additional incentive to be located there, say UAE authorities.
"India is the most lucrative market for us because of the country's size and the presence of a large number of industrial houses here," said Raed Abdalla Bukhatir, marketing officer of Sharjah Airport International Free Zone (SAIF).
"Out of around 1,600 companies in SAIF from 62 countries, 48 percent are Indian firms representing trading, manufacturing and services sectors," Bukhatir, who is in India to participate in the UAE trade show, told IANS.
Some of the Indian companies that have set up their operations in SAIF include Godrej Industries, Infosys Technologies, Ashok Leyland, ICICI Infotech, and media conglomerate Zee Telefilms.
"Over the next three years, all the available space at SAIF will be fully booked and we expect India to account for the majority of new entrants. We are already holding talks with a dozen companies here," said Bukhatir.
Like all free trade zones in the UAE, SAIF is equipped with all the facilities and communication infrastructure required to set up any kind of business, the official said.
The SAIF, adjacent to Sharjah international airport, is a state-of-the-art zone that allows 100 percent ownership and repatriation of funds. No corporate or personal income taxes, import or export duties are levied at the free trade zone.
Free zones in the UAE have now become an integral part of the development and diversification plans for each Emirate.
"With most of the Indian companies expanding operations overseas in a big way, UAE trade zones should be one of their preferred destinations," said Hussain Al-Banna, manager (international sales) of Jebel Ali Free Zone Authority.
Jebel Ali Free Zone Authority in Dubai, the UAE's trading centre, boasts of the presence of 600 Indian companies out of its total 3,800 occupants in its sprawling premises.
"By the end of 2005, we expect the number of companies to go up to 5,000 and nearly 30-40 percent of this number would be Indian firms. We are focussing on hi-tech Indian companies in a big way," said Al-Banna.
"Jebel Ali is the most modern and technologically advanced port in the region. Companies can select workers with a wide range of skills from an easily accessible central pool in the UAE.
"In addition, companies are free to bring in their own employees to work in the free zone. The UAE's proximity to India also makes it an attractive destination for an alternate facility or disaster recovery centre," he added.
The official said luxury lifestyles, modern infrastructure, a multinational talent pool and low taxes all add to the UAE's lustre as a preferred investment destination for Indian technology companies.
The UAE, a major supplier of oil for India and home to over one million Indian expatriates, is emerging as a major trading partner with India.
The total non-oil trade between UAE and India reached about $7 billion by the year ended March 31, 2004, marking a 50-percent growth over the previous year while Indian exports reached $5.1 billion during the same period.
Source: IANS
Source: IANS