Emirates Free Zones

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(Simon Cobon/ITP)

The rapid development of free zones in the United Arab Emirates has helped to fuel considerable growth in the country's logistics industry. Logistics Middle East profiles ten of these leading facilities and pays tribute to their industry contribution.

Dubai Airport Free Zone

Dubai Airport Free Zone has experienced a significant level of growth since its establishment in 1996 and currently hosts a multicultural community of investors, including 41% from Europe, 19% from the GCC and 12% from North America.

In particular, a strong focus has been placed on the automotive industry, with heavyweights such as Porsche, Rolls Royce, Volkswagen and Audi present in the free zone. Since the waiting list for investors has continued to increase, a major expansion is currently underway to meet customer requirements.

In the meantime, approximately 253 warehouse units are located in Dubai Airport Free Zone, each measuring between 200m2 and 300m². In addition, Dnata has boosted the logistical infrastructure by providing a range of supply chain services to tenants since the first day of the free zone's operations.

The facility was recently honoured with the award for ‘Best Middle East Logistics Park', which recognised the strength of its business incentives, including tax free operations, efficient transportation links - particularly its direct access to Dubai International Airport - and simplified procedures.

In addition, Dubai Airport Free Zone Authority (DAFZA) is able to handle visa requirements, supply relevant licences within a week and provide a renewable 15 year lease.

Ajman Free Zone

Lacking the natural advantages of gas and petroleum, the emirate of Ajman established a free zone development in 1996 to support its economic growth.

Strategically located at the entrance of the Arabian Gulf, the industrial centre has become the emirate's sole regulatory agency and houses 20% of the United Arab Emirates' total manufacturing units, exporting to over 64 countries around the world.

It's proximity to Sharjah and Dubai provides easy accessibility to two international airports and four seaports, with Ajman Port emerging as a leading maritime focal point, serving over 1000 vessels a year.

Ajman Free Zone Authority (AFZA) offers the traditional benefits found in other free zones and the development is marketed as providing a cheaper alternative to a number of its Middle East competitors.

For example, it claims to have some of the lowest tariffs in the region, with cheap energy supply, handling charges and lease rates. Particular attention is paid to small to medium sized businesses, and the authority also facilitates cooperation with foreign organisations.

These incentives have led to significant growth in Ajman Free Zone, as investors have been keen to take advantage of the operational benefits and long term stability, with 20 year contracts available.

The format has proved attractive to the business community; with the number of companies setting up operations in the free zone having quadrupled.

Dubai Logistics City

Construction of Dubai Logistics City (DLC) continues at full pace, with the ambitious project being marketed as the world's first completely integrated logistics platform.

Operations are scheduled to commence at the beginning of 2009, with 12 million square metres of land being allocated to industrial and distribution companies, allowing each tenant to either build their own facilities or rent shared premises.

DLC is a major component of the 140km² urban aviation project Dubai World Central (DWC), which also includes Al Maktoum International, set to become the world's biggest international airport.

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