At the Taj Hotel in Mumbai on Monday, Hamad Harith Al-Midfa, director general, Sharjah Airport International Free Zone and Daniel Louw, commercial director, Hamriyah Free Zone made presentations on the investment opportunities in Sharjah free zones to prominent Indian businessmen. Both Al-Midfa and Louw in an exclusive interview to The Financial Express explained the growing investment opportunities in Sharjah free zones. Excerpts.

On Sharjah free zones

Sharjah Airport International Free Zone (SAIF-Zone) has earned the distinction of the fastest growing free zone in the Middle East, registering about 600 per cent growth between 1995 and 1998. As on March 1999, SAIF-Zone has around 335 companies in its fold covering almost all the continents. In terms of business activities, the trading sector leads the pack with250 licences followed by service sector with 84 and industries with 43 licences. Established in November 1995, Hamriyah Free Zone is a new generation free zone that has banned the phrase `red tape' from its business directory and strives to create an integrated, far-reaching, business driven industrial community.

On concessions and benefits

Investors are being offered numerous incentives to promote trade in the free zones. Some the incentives are: 100 per cent foreign ownership, full tax exemption from import and export, 100 per cent exemption from all commercial levies, 100 per cent repatriation of capital and profits, lease available for 15 years which can be extended to a further 15 years and absence of corporate tax or personnel income tax. Apart from this, prospective investors can avail themselves of land for lease for tailor-made development, pre-built warehouse factory, executives office suites and access to abundant and inexpensive energy. Highly developed infrastructure andtelecommunication links make the zones a wonderful haven for investments.

On locational advantages

The SAIF-Zone is located adjacent to the Sharjah International airport, only a few minutes from Port Khalid on the Arabian Gulf and 120 km from the port of Khorfakkan on the Indian Ocean. The Hamriyah Free Zone is sited on a 10 sq km strip of prime coastal land with a 14 meter deep water port which has dedicated petrochemical, bulk handling and general cargo berths capable of handling vessels upto 250 meters long. Both free zones enjoy an excellent strategic location which are connected to modern highways to both coasts of the UAE. This gives an advantage to any company requiring fast efficient connections by land, sea and air. On the whole, free zones encompass a world class infrastructure, with pre-built warehouses and land with excellent road water electricity network.

On why free zones are a suitable investment destination for Indians

More than 50 per cent of the employees in freezones are Indians. This definitely gives prospective Indian investors an edge over others. Also, 47 per cent of the listed companies are Indian only. Major Indian companies like the Godrej group have already started operations from the zone and are planning to go in for expansions. We are getting a positive feedback from some of the well known companies in India.

On Sharjah's potential

Sharjah, apart from having 47 per cent of industries based in UAE, is also known for its strategic location and links to major ports. Sharjah international airports is a major sea-air cargo hub and was awarded the global air cargo airport for 1999 by the European Institute for Transport management. The International airport has direct connections to 14 Indian cities. Incidentally, Gulf air issues visas to Indians in 48 hours with effect from April 22, 1999. Modern network connects Sharjah to other Emirates with the Emirate of Dubai only 6 kms away.