Acting under a mandate from the umbrella organisation Sharjah Free Zone Authority (SFZA) chairman Sheikh Tariq bin Faisal bin Khalid al Qassimi, SAIF-Zone director general Hamad Harith al-Midfa and HFZ's commercial director Dan Louw were in Chennai on Wednesday as a part of their Indian tour promoting the facilities offered by the zones.

Talking to The Financial Express in an exclusive interview, the two officials underlined that despite the emergence of other free trade zones in the region, the Sharjah zones are in the front rank of investors as they offer low entry prices and unmatched packages.

"The slow-down of the South-East Asian economies has made large companies and investors scout around for anattractive location. They are now forced to look at West Asia and Gulf Cooperation Council (the apex body of the Gulf states) markets. Within the United Arab Emirates (UAE) the Sharjah free zones are emerging as the most preferred destination for investments by many seeking entry to these markets in view of their excellent locational advantages," they said.

Al-Midfa explained that SAIF-Zone registered a 600 per cent growth in three years between 1995 and 1998 and has emerged as the fastest growing free zone in the entire West Asia. "Last year the response was good. Many companies from the Virgin Islands in Britain have registered with us. Many of these are owned by Indians and workers are also mostly Indian."

He said the low-cost life style suited Indians and they also liked the country as the two countries had a long standing historic trade links also. The SAIF-Zone offers attractive packages for location of industrial units with a wide range of options. There are no government restrictions for movementamong 11 sea ports and six international airports in the UAE. Sharjah can be reached within a couple of hours from India by air. And trucking time between the various ports can be done within two or three hours.

"Sharjah contributes to 45 per cent of the industrial GDP of UAE. In the last three years, the SAIF-Zone has attracted 350 companies from 54 countries. Investments so far total around $800 million and the zone is easily among the fastest growing free zones in the world. The zone is primarily targeting from Tamil Nadu and southern region investments in hi-tech industries in the light and medium sector," he said.

According to him the zone achieved a growth rate of 28 per cent during 1997-98. Although he declined to put a figure on investments expected this year, he was optimistic that the growth rate will be maintained around 25 to 30 per cent.

HFZ commercial director Dan Louw disclosed that Hamariyah as a sea port zone complements the airport zone and the two work together resulting in enormoussavings in transportation costs. HFZ offers space for location of heavy industries.

The HFZ is located on a 10 sq km strips of prime coastal land with a 14 metre deep water port with dedicated petrochemical, bulk handling and general cargo berths capable of handling even 250 metres long vessels.Hamariya is targeting an investment of $1 billion in private projects by year 2003. This year expects to attract $70 million. Some 45 per cent of the zone's is designated for heavy industries like petrochemicals while the balance is earmarked for light to medium industries, general trading and marketing of goods etc.