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UAE Freezones Biz News Updates
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Free zone trade accounts for a third of UAE’s non-oil economy
They saw trade grow by 16% in 2014 compared to the previous year
Trade through the free zones represented 33 per cent of the UAE’s non-oil
trade in 2014, according to Sultan Al Mansouri, UAE Minister of Economy.
“Free zones play a key role in globalising and diversifying the UAE’s
economies, that adopt the principles of free trade. They help stimulate
trade and investment, and facilitate the transfer of skills, knowledge and
technology,” he said yesterday at the opening session of the first annual
International World Free Zone Conference and Exhibition, which was attended
by Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister
of the UAE and Ruler of Dubai.
During 2014, free zone trade grew by 16 per cent over the previous year, Al
Mansouri said. The UAE today boasts 36 free zones with specialised sectors
for trade, clean energy, industry, ICT, media, finance, gold and metals, and
health care, he said.
The UAE has driven its economy with a focus on the foreign trade, investment
and industry sectors.
These efforts have resulted in strengthening diversification and boosting
the UAE’s trade status globally by increasing its competitiveness, according
to Al Mansouri.
The UAE has also become the leading Arab country for attracting foreign
direct investment. FDI flows increased from $4 billion in 2009 to $11.85
billion in 2014, he said.
Juma Mohammad Al Kait, Assistant Undersecretary Foreign Trade Affairs at the
UAE Ministry of Economy, attributed the successful economic model of the UAE
to the strength of the structural component and the policy of economic
diversification pursued by the country.
“Back in 2000, the UAE had a small oil-dependent economy with a gross
domestic product (GDP) of Dh383 billion, which progressively climbed up,
growing by 286 per cent to Dh1.4 trillion in 2013,” he said.
He is expecting steady economic growth of five per cent in the coming five
years.
“Understanding their importance in ensuring sustained global growth, the UAE
government has assigned special focus to ensuring the success of free zones
operating within the country,” Al Kait said.
He attributed this success to the country’s ability to provide investors and
businesses with advanced infrastructure and enabling services as part of its
business-friendly landscape and transparent regulatory environment.
UAE free zones allow 100 per cent ownership, allow the transfer of all
profits outside the country, while providing exemptions on customs and tax,
he said.
Al Mansouri said that free zones will undoubtedly emerge as an essential and
integral part of the national strategy for future economic development and
will certainly play a more significant role in global trade in general.
“However, to be truly successful free zones have to offer more than just a
place for business with relaxed regulation,” he said.
They need to be established carefully in strategic locations. At the same
time, governments have to provide them with the right infrastructure, and
implement appropriate regulations for their growth, he said.
The number and scope of free zones that should exist in any country for best
results is still debatable. Even if there is such a desired limit, markets
in Asia, Europe and the Middle East are still to reach that point, he said.
May 13, 2015 |
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Courtesy Al Nisr Publishing LLC
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