Hamriyah Free Zone is exploring new markets to sustain strong double-digit growth in the foreseeable future despite the challenging environment on the economic front in the wake of slowdown in global economies and debt crisis in Europe, its top official said.
Hamriyah, one of the fastest growing free zones in the UAE, has expanded its reach to South America as investors from Brazil, Chile, Colombia and Panama have shown interest in establishing industrial units in one of the largest free zones in the Middle East to make inroads into the growing Asian markets.
“We are looking at new markets to meet our growth targets and have successfully expanded our business to South America. Our sights are set on penetrating more new markets to empower investors in their joint ventures at the free zone,” Dr Rashid Al Leem, Director-General of Sharjah Department of Seaports & Customs and Sharjah Free Zones Authority, told Khaleej Times during an exclusive interview at his office.
He said Hamriyah Free Zone (HFZ) has registered 962 new companies since January this year as it sustained a steady growth in the first half due to growing interests of investors in the region. The free zone registered 387 new firms in the second quarter and 383 companies in the first quarter of 2012 despite the turmoil in European and US economies and unrest in some parts of the Middle East and North Africa.
“Our global coverage now encompasses 5,700 companies and we aim at touching the 6,000 mark this year,” he said.
“We have investors from almost all over the world, including five continents and from 140 nationalities. We defied the recession trends and have achieved over 20 per cent growth in the past two years,” he said.
He said India, Pakistan and Europe remained the top three largest investors at the free zone and they set up industries in various clusters including automotive, construction, petrochemical, maritime, oil and gas, steel and metals, among others.
To a question about the impact of Europe’s debt crisis on free zone growth, he said more investors from Europe have shown interest in HFZ and they want to relocate their industrial units due to rising production costs and volatile economic conditions on the continent.
Al Leem hailed the investment from traditional trading partners in the Subcontinent and said the management considers their valuable contributions to the free zone and will continue to facilitate them in expanding their businesses.
“We will continue to focus on our existing core markets including Asia, Europe and the Subcontinent to sustain a steady business growth in the coming years,” he said, adding that greater thrust will be on exploring new markets and Africa that has been overlooked in past strategies.
“For investors, Hamriyah Free Zone offers the perfect investment opportunity in a free market economy. It offers a robust and vibrant investment climate.”
Al Leem said the free zone plays a significant role in the economic growth of Sharjah and the UAE by establishing a strong industrial base in the country.
“The free zone emerged as a growth engine of the local economy as it contributes $6 billion to Sharjah’s gross domestic product since its inception in November 1995,” he said.
To a question regarding the free zone’s role in establishing an industrial base in the UAE, he said all sizes of industries are operating in HFZ and playing a vital role in diversifying the local economy.
“All industries from international heavyweights to SMEs have set up their units in various clusters at the free zone,” he said, adding that the petrochemical, maritime, and oil and gas sectors contribute major business share to the free zone.
In reply to a question, he said HFZ has one of the most progressive and fast-evolving landscapes for the small and medium enterprises to thrive in a competitive environment. “Our unique custom-designed seven SME clusters (HFZA 7 Magnificent Zones) comprising oil and gas zone, timber land, maritime city, petrochemical zone, construction world, perfume world and steel city are attracting SMEs and investors from across the world,” he said.
He said the authority is committed to supporting small businessmen through explicit policies and special clusters, MB zone and Hamriyah e-office package for startups.
“Our cutting-edge services, work-friendly environment, minimum regulations, transparency, no hidden charges, red-carpet treatment for investors, and working with international standards offer a very conducive and ideal atmosphere to businesses.”
To a question about new initiative at the free zone, he said Hamriyah Logistic Village and Hamriyah Industrial Zone will supplement the growth in HFZ.
“The Logistics Village is aimed at providing all-in-one logistics and distribution centre for companies operating in the free zone. This initiative is part of the government’s vision to ensure sustainable growth in industrial and commercial sectors,” he said.
“The newly completed Logistics Village — comprising 224 warehouse units ranging in size from 200, 400, 600 to 800 square metres — also provides an all-in-one logistics and distribution centre for companies operating in HFZA,” he said.
Al Leem said the free zone offers investors the opportunity of 100 per cent ownership and no taxes or import and export levies. Moreover, there is no restriction on repatriation of capital and profits and investors can also benefit from easy access to three seaports and an international airport connecting all major cities across the region.
To a question about the strategic advantage of the free zone, he said its location is very unique and offers undeniable logistics solutions through well-connected road networks, excellent telecommunication links and customs procedures that allow speedy movement of goods.
“The strategic location of Sharjah links investors to Asia, Africa and Europe through three seaports namely Khalid, Hamriyah and Khorfakkan and Sharjah International Airport. All the three ports have very diversified operations and serve investors as per their specific needs of business. Khorfakkan offers easy links to the Indian Ocean for container vessels, Hamriyah connects various ports of the Arabian Gulf while Khalid Port serves small traders,” he said.
“The enviable location at the crossroads of international trade routes has been providing the free zone investors access to the lucrative 1.5 billion population market in the Mena region for the past 15 years.”
He said the borders of all other six emirates converge at Sharjah, making it extremely favourable for both budding and seasoned investors and manufacturers.
Al Leem paid rich tribute to the visionary leadership for establishing a strong infrastructure base across the country. He said the free zone has been playing a key role in building a solid industrial base to supplement the economic growth.
To a question about the competition with other free zones in the UAE, he said each zone has its own specialty and this strategy will help complement growth in setting up various industries across the country.
“I don’t see any competition among the free zones,” he said.
“We will be focusing not only on improving profitability, but also on developing transparent policies and introducing friendly services to investors in order to ensure sustainable growth over the next decade,” he concluded.
muzaffarrizvi@khaleejtimes.com
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