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The visit was punctuated by the signing of strategic partnerships between the UAE and Indian entities
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Dubai free zones open up boundless contributions
DUBAI — Free zones in Dubai play a significant role in boosting the economic growth of the emirate and last year these zones contributed 41 per cent of total exports and re-exports, according to a new study by the Dubai Chamber.
Dubai has established many free trade zones to give businesses an additional incentive to be located there. Initially, free zones were created to attract foreign investment and promote foreign trade.
As globalisation gained ground, free zones became the preferred areas for foreign investment as they offered the most cost effective mix of factors of production, transportation and distribution.
“Dubai’s free zones are a major source of attraction for global companies and firms due to the many advantages they offer to investors looking for all the benefits of operating in the designated free zone areas,” said Hamad Buamim, Director-General of the Dubai Chamber.
According to the Dubai Customs Authority, the total export and re-export value from Dubai’s free trade zones totalled Dh112 billion in 2009. The total export and re-export value of Dubai (which excludes free trade zones) amounted to Dh163.1 billion in 2009. Therefore, Dubai’s free trade zones contributed to 40.7 per cent of total export and re-exports in 2009.
Dubai’s free trade zones export to a large number of countries. In recent years, exports have been increasing on the back of an extensive foreign trade network offering traders a large array of potential global marketing opportunities for a diverse portfolio of goods. In the GCC, Saudi Arabia was the largest recipient of Dubai’s export and re-exports from the free trade zones in 2009.
In terms of imports, Dubai’s free trade zones total imported value summed to Dh152.1 billion in 2009. The total imports of Dubai (excluding free zones) amounted to Dh313.9 billion. Therefore, Dubai’s free trade zones contributed to 32.6 per cent of total imports in 2009.
Buamim stressed the importance of the free zones in offering competitive advantage through its strategic location that also offers the ease of exporting to the Asian Sub-Continent and the African Continent. He also emphasised on the backing of the government in enhancing export activities and its support to Dubai businesses in entering new markets as well as expanding the scope of their trade in global markets.
They offer a wider range of options to potential investors including 100 per cent foreign ownership with no sponsorship requirements; corporate tax and customs duty exemption on imported raw materials and equipment and no levy on exports and imports.
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