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UAE Freezones Biz News Updates
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Shaikh Mohammad announces Abu Dhabi free zone board
Talks are on to attract international businesses to function out of Global
Marketplace Abu Dhabi.
General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and
Deputy Supreme Commander of the UAE Armed Forces and Chairman of Abu Dhabi
Executive Council, on Monday ordered reforming the board of directors of the
Global Marketplace Abu Dhabi (GMAD) under the chairmanship of Ahmad Ali
Mohamamd Al Sayegh.
The decision states that Mohamamad Darwish Mohammad Al Khouri, Ali Majid
Mubarak Al Mansouri, Ebrahim Obaid Al Za’abi and Mohammad Najm Al Qubaisi
also be board members. The membership of the board of directors will extend
over five years.
The GMAD is a free zone that offers 100 per cent foreign ownership, tax and
capital repatriation.
Wadah Al Taha, chief analyst and economist at Zarouni Group, told Gulf News
that the GMAD’s legal body requires three to six months to form. “The
legislative platform should cover all stages and the formation of the legal
body requires three to six months,” he said.
Amer Nouman Ashour, chief analyst and economist at CNBC Arabia, had told
Gulf News earlier that the GMAD was expected to be announced in the third
quarter of 2013. Ashour added that the new financial free zone will offer
incentives to firms to operate their businesses from Abu Dhabi.
“There are talks with the International Monetary Fund and the World Bank to
have their offices in the GMAD. This will encourage many international
businesses to move from other major financial cities in the region. Many
companies will be moving and shifting their businesses from Saudi Arabia,
Bahrain, Doha and even
Dubai to Abu Dhabi due to the many facilities that will be extended here,”
Ashour said.
“Right now, there is the International Financial Corporation [IFC], a member
of the World Bank Group, in Dubai. Though there is talk that the offices of
the IMF and WB may be moved to Turkey, it is possible that they be moved to
the GMAD due to facilities that the Abu Dhabi government is extending,”
Ashour said.
Good news for economy
Omrah Agha, a UAE-based economist and analyst, said the formation of the
GMAD is very promising for the UAE economy.
The announcement is also fuelling speculation about a merger between the
Dubai and Abu Dhabi financial markets. “Similar to the decisions to merge
Aldar and Sorouh and Dubal and Emal, it is expected that both markets will
be merged,” Agha said.
But this will not be an easy decision as the markets play complementary
roles. “The GMAD will focus on energy, oil and gas, renewable energy, carbon
credits while the Dubai International Financial Centre [DIFC] focuses on
financial aspects,” Agha said.
He added that the announcement to form the GMAD board will transform the UAE
into an international hub. “The UAE will be an international hub for foreign
investors who will benefit from operational costs. It will also prompt
businesses from the region, European Union and the US to invest in the UAE
market,” Agha said.
Ashour said that the GMAD will have positive results on the UAE economy.
“The direct effect will be to increase per capita income, decrease
unemployment rates, enhance revenues from foreign companies and increase
investments in the country which is regarded as a safe haven,” Ashour said.
Aug 26, 2013 |
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Courtesy Al Nisr Publishing LLC
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