Doing Business in UAE - Morison Menon
Doing Business in UAE - Morison Menon
Doing Business in UAE - Morison Menon
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importance of the <strong>in</strong>dustrial sector and has<br />
always belived it to be the pioneer<strong>in</strong>g sector of<br />
economic development. The Industrial zones <strong>in</strong><br />
different part of the Emirate come under the<br />
supervision of the Higher Corporation for Specialized<br />
Economic Zones (HCSEZ). HCSEZ is<br />
charged with creat<strong>in</strong>g a suitable enviornment for<br />
<strong>in</strong>dustries be<strong>in</strong>g set up <strong>in</strong> Mussafah Industrial<br />
City, Al Ruwais Industrial Area and the Al A<strong>in</strong><br />
Industrial Area.<br />
Higher Corporation for specialized Economic<br />
Zones<br />
The mission of the Higher Corporation for specialized<br />
Economic Zones is to provide Economic<br />
Parties with the best services that add value to<br />
their works and to promote and develop the economic<br />
<strong>in</strong>vestment <strong>in</strong> the Emirate of Abu Dhabi<br />
so as to meet the needs of the Emirate<br />
with<strong>in</strong> the perspective of susta<strong>in</strong>able Economic<br />
development.<br />
The newly founded body, under chairmanship<br />
of the Abu Dhabi Economic<br />
Department, has the task of provid<strong>in</strong>g<br />
support structures for establishment and<br />
management of specialized zones <strong>in</strong> the<br />
capital. The Abu Dhabi Department of<br />
Economy has emerged over the last two<br />
years as a driv<strong>in</strong>g force <strong>in</strong> the development<br />
of non-oil <strong>in</strong>dustries <strong>in</strong> the emirate.<br />
Mussafah Industrial City<br />
Mussafah Industrial City is one of the most important<br />
<strong>in</strong>dustrial and <strong>in</strong>vestment centres <strong>in</strong> the<br />
emirate of Abu Dhabi. It is 30kms from the Abu<br />
Dhabi City Centre, and boasts of very good road<br />
network l<strong>in</strong>k<strong>in</strong>g it with Abu Dhabi and the other<br />
emirates. It is situated at about 30kms from<br />
the Abu Dhabi International Airport and 40 Kms<br />
from the Zayed Sea port (Port Zayed). The Mussafah<br />
Industrial area covers 14 sq.kms and is<br />
made up of six varieties of <strong>in</strong>dustrial zones based<br />
on their activities.<br />
Zone 1: Automobiles, Mach<strong>in</strong>eries & Spare Parts<br />
shops<br />
Zone 2: Food, Textile & Soft dr<strong>in</strong>k manufactur<strong>in</strong>g<br />
Zone 3: Eng<strong>in</strong>eer<strong>in</strong>g works, Wood and Herbal Indus-<br />
tries<br />
Zone 4: Chemical, Plastic & Petrochemical Indus-<br />
22<br />
tries<br />
Zone 5: Build<strong>in</strong>g & Construction related materials<br />
Zone 6: Advanced Technology Industries<br />
Availability of Natural Gas<br />
The Mussafah Industrial Area is the only <strong>in</strong>dustrial<br />
area which supplies <strong>in</strong>dustrial gas. Normal<br />
Gas Unit Price is 4 Dirham/MBTU. Gas connection<br />
<strong>in</strong>stallation cost depends on factors such as<br />
size, distance and <strong>in</strong>put. Land rent starts from<br />
10 fils/sq. ft.<br />
Start<strong>in</strong>g a Project<br />
An Industrial Project requires the approval from<br />
General Industrial Corporation, Abu Dhabi Chamber<br />
of Commerce and Industry and the Abu<br />
Dhabi Municipality and Town Plann<strong>in</strong>g Department.<br />
Industrial City of Abu Dhabi (ICAD)<br />
ICAD is located 30 kilometres from the centre<br />
of Abu Dhabi City and 25 kilometres from Abu<br />
Dhabi International Airport. It has shown very<br />
rapid recent growth with 355 major manufactur<strong>in</strong>g<br />
companies employ<strong>in</strong>g more than 30,000<br />
workers. The City provides all basic services and<br />
facilities for a wide range of <strong>in</strong>dustrial activities.<br />
Land Rental Rate (Approximate)<br />
Standard: 50 fils per sq.ft<br />
Sea side: AED 2 per sq.ft<br />
Khalifa Port and Industrial Zone<br />
Abu Dhabi government plans to construct a new<br />
seaport and an <strong>in</strong>dustrial city at Taweelah situat<strong>in</strong>g<br />
on the Dubai-Abu Dhabi coastl<strong>in</strong>e. The new<br />
port and <strong>in</strong>dustrial zone are <strong>in</strong> l<strong>in</strong>e with the cur-<br />
rent strategy of the local government to step up<br />
its pace of development <strong>in</strong> <strong>in</strong>dustrial, economic<br />
and tourism sectors. It is expected the new <strong>in</strong>itiative<br />
shall help to <strong>in</strong>crease the competitiveness