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UAE Freezones Biz News Updates
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Dubai tops in Shariah-compliant free zones
 Abdullah
Mohammed Al Awar, CEO of the Dubai Islamic Economy Development Centre; Badr
Buhannad, executive vice-president for corporate strategy, ICT and risk
management at the Dubai Silicon Oasis Authority; and other officials during
the Press conference
Free zones contributed $55 billion (Dh202 billion) to Islamic economy
Dubai ranks first among the world's leading Islamic economy-enabling free
zone cities that collectively contribute $55 billion to the global Shariah
economy, findings of a new study revealed.
Other cities ranked after Dubai include Kuala Lumpur and Johor Bahru in
Malaysia, and Manama in Bahrain, according to the Free Zones Outlook Report
released on Wednesday by the Dubai Silicon Oasis Authority (DSOA), the
regulatory body for Dubai Silicon Oasis.
The report, developed in collaboration with Thomson Reuters, estimates that
in 2015 free zones contributed $55 billion (Dh202 billion) to the Islamic
economy, valued at $1.9 trillion, and projections suggest this number will
increase to $117 billion by 2021.
Free zone contribution to the halal food sector amounted to $34 billion and
is expected to hit $74 billion by 2021, while the $7 billion contribution to
the modest fashion sector is projected to double by the same period.
According to the report, Malaysia was one of the first nations to develop
the concept, creating dedicated free zone "hubs" across the country. At
present, 30 free zones across 18 cities worldwide support Islamic economy
activities.
Dr Mohammed Alzarooni, vice-chairman and CEO of the DSOA, said the authority
actively participates in boosting the growth of the emirate's Islamic
economy sector.
"Through the DTEC [Dubai Technology Entrepreneur Centre], we support
start-ups in the fields of technology, digital Islamic economy, online
Arabic content and smart city initiatives. Our ultimate aim is to contribute
to shaping the UAE's post-oil economy."
Abdullah Mohammed Al Awar, CEO of the Dubai Islamic Economy Development
Centre (DIEDC), said free zones represent ideal platforms to grow the key
sectors of Islamic economy.
"Even though the facilities free zones provide may differ around the globe,
their value proposition is essentially the same - they enable local and
foreign investors alike to operate, network and expand. However, the
benefits are mutual; today and in the near future, Islamic economy can offer
real added value to free zones," said Al Awar. In January, the DIEDC
launched of a new strategy for 2017-21 for the development of the Islamic
economy system.
The strategy includes identifying new performance indicators for monitoring
growth of key sectors and measuring their contribution to the UAE's economy.
It also focuses on ensuring long-term impact, and its main objective is to
lead the growth of the Islamic economy sectors on a local, regional, and
international scale, and to set a benchmark for the Islamic ecosystem
worldwide.
Nadim Najjar, managing director of Thomson Reuters in the Middle East and
North Africa, said free zones allow constituents to maintain superior
quality of products and services and adhere to best practices. "There are
ample opportunities for free zones to create significant economic value
across all pillars of the Islamic economy. Our report projects that the
value of Islamic free zone exports will more than double over the next five
years."
Maximising free zone use across all sectors of the Islamic economy has the
potential to spearhead significant growth of the SME segment in the UAE,
said Najjar.
"These sectors can go a long way towards achieving the goals of the UAE
Vision 2021, including raising SME contribution to non-oil GDP to 70 per
cent and increasing non-oil sector contribution to the total GDP to 80 per
cent," he said.
March 15, 2017
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Courtesy Khaleej Times.
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