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Dear Readers, 

Due to the rapidly maturing, non-oil dependent 

economy and a government committed to liberal, 

free market, business-friendly policies, Dubai’s 

proposition as the regional and global hub is fast 

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mega projects, such as Dubai World Central, a cluster 

of specialised zones that includes DWC International 

Airport, which – when completed – will be the 

world’s largest airport, with a passenger capacity 

equal to that of Chicago O’Hare and London 

Heathrow, and more than 12 million tonnes of cargo 

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Additionally, there’s Dubai Logistics City, designed 

as the region’s unchallenged logistics hub in a single 

customs bonded and free zone environment, adjacent 

to the Jebel Ali Free Zone and Seaport, catering to 

some two billion people throughout the Middle East, 

Indian Sub-continent, Africa and the CIS, all within 

three-to-four hours flying time from Dubai. 

Within the next few years, a new population 

representing integrators, express operators, 

forwarders, contract logistics providers, light 

manufacturing units, warehousing companies, 

distributors, and traders would make Dubai their 

home – thus forming the world’s largest supply chain 

and logistics community. 

We would like to hear from you ! 

We welcome your comments and views on this issue of The LINK Magazine. Your 

opinion is valuable to help us serve you better. 

Keep us updated on the activities in your organisation. Send all the exciting news about 

your company to: 

All rights reserved. The opinions and views expressed in this publication are not necessarily those of the 

publishers. Readers are requested to seek specialist advice before acting on information contained in this 

publication, which is provided for general use and may not be appropriate for the reader’s particular 

circumstances. The publishers regret that they cannot accept liability for any error or omissions contained 

in this publication. 

The Editor, 

magazineeditor@sclgme.org 

Supply Chain & Logistics Group | www.sclgme.org

9 

CONTENTS 

10 SCLG - A ROUND UP 

SCLG host interactive educational event at DCCI 

11 HEAD TALKS 

Interview with Nigel Moore, SCLG Executive 

Committee member 

16 RETAIL 

‘’To Cap or not to Cap?’ 

18 LOGISTICS 

Dubai Logistics City: Positioning Dubai as 

world’s logistics center 

22 WAREHOUSING 

Emirates Industrial City: Promoting Sharjah’s 

image as warehousing hub 

24 COVER STORY 

Dubai Maritime City set to make waves 

43 SPECIAL REPORT 

Link between ports and free zones strengthen economy 

47 MARKET WATCH 

TNT launches ‘Mobile Worker’ in 

Kuwait and Bahrain 

52 KSA DEVELOPMENTS 

Promoting knowledge through ‘Econmic City’ 

54 UAE INFRASTRUCTURE 

Dubai gets hi-tech air cargo facility 

56 TRANSPORTATION 

DHL Exel Supply Chain fills logistical needs in O&G market 

58 TECHNOLOGY 

G-HANZ, CipherLab form strategic alliance 

60 PRODUCT WATCH 

Staff on-time and attendance biometric system 

64 CASE STUDY 

Juma Al Majid ‘marries’ all systems with Oracle 

66 LEGAL OUTLOOK 

Maritime law in the UAE 

68 INSURANCE 

Business Interruption Insurance can help you get back 

on your feet 

70 HUMAN RESOURCES 

Cost of living in Gulf outstrips salary rise 

72 TRADE AND ECONOMY 

Non-oil trade through free zones reach new heights 

74 EVENTS SPOTLIGHT 

Fifth edition of Gulf Maritime Exhibition to begin 

on April 16, 2007 

16 18 24 

47 52 68 


10 SCLG - A Round Up 

SCLG host interactive educational event at DCCI 

The Supply Chain and Logistics Group (SCLG) is committed to 

serving and advancing the profession through the development 

and dissemination of supply chain and logistics knowledge. To 

fulfill its educational mission, SCLG recently hosted a special 

education-cum-networking evening for its members and industry 

professionals at the Dubai Chamber of Commerce and Industry 

headquarters in Dubai. The session included an industry 

presentation by CSCMP South Africa Roundtable education board 

member Rob Clemo; the presentation was titled : "Managing the 

Risks of Outsourcing ." 


Head Talks 11 

Head Talks 

Interview with Nigel Moore, member SCLG 

Executive Committee, and Managing Director 

Logistics Recruitment Middle East & Africa 

Please tell us a bit about your 

background and work experience? 

I have been in the transport and logistics 

industry for 23 years with assignments in 

a wide variety of countries, cultures and 

businesses since leaving the UK in 1984. 

After graduating with a Degree in 

Maritime Commerce from Cardiff, UK I 

spent some time in London working in 

port management before coming to Dubai 

to help develop Port Rashid in the 1980s. 

Since then, I have held senior positions in 

the maritime, aviation and logistics sectors 

around the world, including Board level 

responsibility for various businesses. 

Focus throughout my career has been on 

developing new products, growing 

businesses and implementing value-added 

services to win and retain clients. Much 

time has also been spent on developing 

human resources through structured 

organisational development programmes. 

I travel extensively and have lived in 

France, Egypt, Philippines, Singapore, 

Australia and Dubai. 

Today, I am the Managing Director of 

Logistics Recruitment Middle East & 

Africa, a specialist recruitment business 

focusing solely on the Logistics and 

Supply Chain sector with offices in Dubai, 

Amsterdam, Singapore, Shanghai, Sydney, 

Melbourne and Brisbane. 

Share with us your experience of 

working in the Middle East? 

The Middle East today is very different 

from 20 years ago. On the plus side, we 

live in a dynamic modern business 

environment with a great “can do“ attitude. 

On the down side, we now suffer the same 

time pressures that beset the rest of the 

world and the local culture has become less 

visible to the expatriate work force. 

Tell us how you got associated with SCLG? 

It’s always good to try and put something 

back into the industry you work in and 

when a few people asked me to get 

involved I was happy to do so. 

As an SCLG executive committee 

member, what’s the biggest challenge in 

your job? 

Finding time to work on SCLG issues! 

Could you speak about some of the 

positive impacts of SCLG’s active 

collaboration with CSCMP, USA? 

CSCMP is a very professional organisation 

and the people provide a good template 

for SCLG’s own activities. It was 

interesting to see the success of the 

CSCMP conference in Dubai last year 

where SCLG worked hard to encourage 

participation from our members. 

What can be done to further unify the 

supply chain and logistics professionals 

across continents? 

Collaboration between regional logistics 

and supply chain organizations is a good 

way to start. For example, I am now 

involved in the Supply Chain Asia 

organisation and it will be worthwhile to 

encourage links between this dynamic 

Asian group and the SCLG. 

How do you balance a full time job and 

responsibilities of SCLG’s Executive 

Committee member? 

It’s difficult to balance any of your 

activities these days in the region – there 

are always new and interesting 

opportunities to pursue, but somehow I 

manage to find the time for this 

worthwhile organisation. 

What is your advice to youngsters who 

wish to enter your profession? 

Get good training and then join a 

company that values further training and 

internal career development. A company 

with good organisational development 

ideals will provide a good platform from 

which to learn and grow in your career. At 

the same time, decide where you want to 

go in your career and actively manage 

your own progress rather than ‘wait and see.’ 


12 About SCLG 

SUPPLY CHAIN & LOGISTICS GROUP 

SCLG NEW CORPORATE MEMBERS 

SPAN GROUP 

"Founded in 1989, with headquarters 

located in Dubai and regional offices in 

Lebanon and Qatar, SPAN Group is the 

leading provider of total integrated supply chain solutions to companies 

operating in the Middle East logistics industry. We have worked with over 2,000 

clients in numerous industries including third-party logistics (3PL); wholesale 

and retail grocery; automotive; electronics; distribution; FMCG & CPG; as well as 

with the government and military. Our solutions include design, engineering, and 

equipping of storage, shelving and racking systems. We also provide packing 

equipment, MHE, and industrial furnishing, in addition to a wide range of IT 

supply chain solutions including Warehouse, Transportation, Performance 

management, Demand Planning and Integration. 

For additional information, please visit our web-site at www.span-group.com" 

BSG- BUSINESS SYSTEMS GROUP 

BSG- Business Systems Group is one of the leading 

information technology solutions company operating in the 

Middle East markets since 1995. BSG offers tightly 

integrated, highly configurable and easy-to-use Supply 

chain execution solutions from Exactus Inc. BSG are the 

regional distributor and certified competence center for 

Exactus in the Middle East. 

The "Aware" supply chain solutions from Exactus are now in use by several 

customers in the Middle East who have been able to realize operational excellence 

in warehouse operations by providing responsive and flexible distribution 

networks, optimization of inventory flow, high accuracy and visibility of inventory, 

complete and correct product information and superior levels of customer service. 

BSG’s customers include warehousing, distribution, transportation, and freight 

forwarding customers as well as 3PL logistics service providers. Aware also 

supports 

SSI SCHAEFER 

SSI Schaefer manufactures designs and installs the complete range all types of 

storage and materials handling systems including all types of pallets storage, single 

and multi tier shelving, automated storage and materials handling systems, air 

cargo storage systems, archive storage systems, plastic containers and waste 

containers. 

Worldwide, SSI Schaefer has offices throughout Europe, the Americas (US,Canada, 

Mexico, Brazil) with companies in over 60 countries. 

Middle East HQ with offices in Oman, Qatar, Bahrain, Kuwait, Saudi Arabia, 

Cyprus and Jordan. 


About SCLG 13 


Supply Chain & Logistics Group (SCLG) of the Middle 

East is a non-profit organisation, working under the 

umbrella of Dubai Chamber of Commerce& Industry to 

promote the cause of supply chain and logistics 

industry. This group brings an opportunity for personal 

and professional developments by offering networking 

prospects among like-minded professionals and 

corporations on a global basis. 

The SCLG was founded with the help of senior 

management professionals representing a wide 

spectrum of industries on Supply Chain. This group 

shall strive to bring the best of education, seminars and 

interaction through partnership/ alliances with a 

variety of similar bodies across the globe. 

The Link is the official magazine of the SCLG 

addressing the needs of the Logistics and Supply Chain 

Professionals/Management in the region. It presents 

news, views, developments and information to its 

readers drawn from the industry experts. The magazine 

aspires to serve as a benchmark guide to the industry, 

the first of its kind in the region. 

The articles offer valuable insight and information 

for today's Supply Chain executives. These articles and 

news features cover innovative supply chain practices, 

emerging technologies, e-commerce, market 

information from industry leaders and reports on 

break-through innovative practices. The Supply Chain 

and Logistics industry is still in the development stage 

in the region, but activities of SCLG will help build 

renewed professionalism in the industry. 

MISSION OF SCLG 

To provide an accessible, dynamic and professional 

networking environment that facilitates the 

achievement of professional, educational and personal 

goals, by members of SCLG community in an 

atmosphere that encourages professional development, 

diversity and innovation in Logistics and Supply Chain 

Management. 

BOARD OF ADVISORS 

Shashi Shekhar 

Emirates SkyCargo 

Mohammed Sharaf 

Dubai International 

Sanjay Naik 

Emirates Group 

Fadi Ghandour 

Aramex 

Hamdi Osman 

FedEx 

Mishal Hamed Kanoo 

Kanoo Group 

Clifford Cuttelle 

Tagstone 

David Wild 

DHL 

Michael Proffitt 

Dubai Logistic City 

Rob Turner 

Nestle Middle East 

OBJECTIVES OF SCLG 

• To promote the cause of Logistics and Supply Chain 

industry and raise the overall standards of all 

industries on end to end supply chain 

• To protect the interest of member organisations and 

support government bodies in formulation of policy 

framework for logistics organisations 

• To encourage the free exchange of knowledge and 

skills relating to supply chain and logistics within the 

members of the organisation 

• To provide all members an opportunity to network 

among each other and help facilitate an overall efficient 

commercial environment 

• Undertake studies, compute and maintain 

information, statistical data and official documents 

relating to various aspects of supply chain and logistics 

industry for the benefit of all 

• To establish and maintain contact with similar 

organisations internationally and provide all members 

an opportunity to network with like-minded 

organisations/ members across the globe 

• To conduct training courses, seminars, conferences 

and studies relating logistics and supply chain; also 

establish a library and research centre relating this 

industry to expand the knowledge base 

• To establish good relations with other professional 

groups or societies that are existing or to be established 

locally or globally 

• To promote the cause of education in Supply Chain 

and Logistics among nationals of UAE and thereby 

contribute to build a cadre of professional and extra 

competent nationals to take up current and future 

challenges of Logistics/ Supply Chain industries. 

Saadi Al Rais 

RHS Logistics 

SCLG MEMBERSHIP 

CORPORATE MEMBERSHIP 

Membership is open to all organisations. 

Corporate members shall/may nominate 4 

representatives. All nominated members shall be 

allowed to vote at the Annual General Meeting 

(AGM), and at any Extraordinary General 

Meetings. Board of Advisors and Executive 

Committee members shall decide the annual fees 

for membership. 

INDIVIDUAL MEMBERSHIP 

Open to any individual from any part of the 

world. The annual subscription shall be set from 

time to time as deemed necessary by the Board of 

Advisors and Executive Committee members. 

STUDENT MEMBERSHIP 

Open to students, full-time education only. 

Student membership shall not convey any voting 

rights to the individual. The annual subscription 

shall be set from time to time as deemed 

necessary by the Board of Advisors/ Executive 

committee members. 

Jinendra Sancheti 

TNT Express 

For details log on to: www.sclgme.org 

MORE REASONS - WHY BELONG TO SCLG? 

Access to Educational Training and Seminars at 

concessional rates. 

A Membership Certificate - to distinguish you/ 

your company as professionally focused 

enterprise committed to the cause of Supply 

Chain and Logistics 

• Access to networking evening(s) at 

rebated rates 

• Access to 'member only' section of 

SCLG coming soon 

• Rebates on Subscription of Membership to 

international partnering body of SCLG 

• Membership Card (discount offers being 

discussed at leading retailers /service 

providers) and many more to come............ 

Visit our website (www.sclgme.org) for more 

details. Wish to volunteer on various Sub 

Committee to support us in managing and 

fostering Supply Chain & Logistics Community? 

Contact - Kanchan Vora at admin@sclgme.org 


14 SCLG - A Round Up 


SCLG CONSULTATIVE COMMITTEE 

Jan Bak 

PVAXX Limited 

Johnson Soans 

Panasonic Gulf FZE 

Pradeep Melakandy 

FMCG Logistics 


GlobeApex Management Consultants 

C. Rajmohan 

Free Ports Shipping 

Dr. Madrecha 

Kanoo Group 

Roy A. Patterson 

UTi 

Graham Burne 

Kraft Foods 

Ravi Kashyap 

Steinweg Sharaf 

Arup Gupta 

Sharaf Logistics 

Alnoor Nagji 

Great Circle Lines 

Madhav Kurup 

Trident Freight 

SCLG EXECUTIVE COMMITTEE 

Mike Lee 

President 

Sanjay Babur 

Vice President 

Cosmos Insurance 

Sai Kumar 

Treasurer 

Maltrans Logistics 

Tayssir Awada 

FedEx 

Dirk Van Doorn 

DHL 

Abed Shaheen 

Aramex 

Nigel Moore 

Logistics Recruitment 

Usha Kaul Saraf 

DUC 

Mohammed Asghar 

The Tutelage 

SCLG Endorsed Events Calendar 

5th Intermodal Africa 2007 

29 - 30 March 2007, Venue – Int’l Convention Centre, 

Durban, SA 

Chemical Logistics and World Asia 2007 

25-27 April 2007, Venue – TBA, Singapore 

5th ASEAN Ports and Shipping 2007 

12 & 13 June 2007, Venue –Persada Johor Int’l Convention Centre, 

Malaysia 

4th Thai Ports and Shipping 2007 

27 & 28 September 2007, Venue – Imperial Queen's Park Hotel, 

Bangkok, Thailand 

2nd Southern Asia Ports, Logistics and Shipping 2007 

18 - 19 October 2007, Venue – The Leela Kempinski Hotel, 

Mumbai, India 


About SCLG 15 


SCLG STRATEGY COMMITTEE 

Reinhard Wind 

Ecolog 


GlobeApex Management Consultants 

Dr. Cedwyn Fernandes 

University of Wollogong 

Michael Stockdale 

Al Futtaim Logistics 

Andreas Dur 

Xvise Innovative Logistics 

Naveen Arun V. 

Fine Hygienic Paper FZE 

OBJECTIVES OF SCLG STRATEGY COMMITTEE 

• Creating a well working communication and 

networking platform for the entire supply 

chain and logistic industries 

• Encouraging individuals and companies to join 

the SCLG by steadily increasing the membership 

value 

• Organizing events for different management 

levels of the supply chain and logistic 

industries professionally and in a 

consistent form 

• Being present on all major Logistic Events 

throughout the Middle East, Asia and the world 

• Establishing the SCLG globally as the leading 

non-profit organization 

• Contributing actively to the economic success 

of Dubai and the region 

• Creating a powerful information base for education, 

statistics, industrial developments and trends 

Strategy Committee to define SCLG’s long-term vision 

Motivated by the visionary approach of 

His Highness Sheikh Mohammad Bin 

Rashid Al Maktoum, UAE Prime 

Minister, Vice President and Ruler of 

Dubai, when presenting the Dubai 

Strategic Plan 2015, the SCLG also is in 

the process of preparing its long term 

strategies. 

"Whereas the SCLG in recent years has 

developed quite prosperously, it is time 

now to redefine its mission and its 

activities", says Reinhard Wind, 

General Manager of ECOLOG 

Dubai and member SCLG Strategy 

Group. "Dubai experiences an enormous 

economical upswing and therefore the 

tasks and the challenges for the Supply 

Chain and Logistics Industries have 

increased dramatically. A well organised 

and generic communication and 

networking platform is essential for the 

success of the entire Supply Chain and 

Logistics Industries in the region," 

he added. 

In the SCLG - 5 Years Strategy, the 

strongholds of the SCLG shall be reevaluated 

and fresh ideas shall give new 

momentum. In weekly meetings and in a 

lot of investigations done by each 

individual member of the Strategy 

Group, the new strategies will be formed. 

It is of major importance that the 

developed ideas are of a quite realistic 

nature, so that they easily can be 

transferred into reality. 

Everybody from the SCLG is invited to 

contribute to the success of the 

organisation by giving some constructive 

input to the strategy group or even by 

realising the strategies in the coming 

years. It is planned that the results of the 

investigations are unveiled to the public 

in June 2007. By then the SCLG Strategy 

Group as well will be able to give 

suggestions on how to realise the 

ambitious plan. 


16 Retail 

Lisa Dale discusses the economic ramifications of the 2007 Rent Cap Law 

‘To Cap or not to Cap?’ 

The majority of Dubai’s residents are 

tenants – whether of residential premises, 

business premises or maybe both. Rents 

are therefore a major overhead that 

directly and significantly impacts on the 

cost of living, which drives inflation. The 

massive rent increases witnessed since 

2001 have caused some businesses and 

families to question whether they can 

afford to live and work in Dubai. 

Lisa Dale 

Head of the Property Department 

Al-Tamimi & Company 

‘To Cap or not to Cap?’ a question that has 

devoured endless hours of debate and 

discussion in Dubai over the past 

two years when in 2006 the Government 

of Dubai issued the first Rent Cap 

Law capping any rent increases to 15 

percent. This was recently followed by 

Dubai’s second Rent Cap Law for 

2007 which introduced a cap of 7 percent 

on rents. 

This debate was discussed further recently 

at the Dubai Property Group’s (DPG) 

monthly networking event, which hosted 

Lisa Dale, Head of the Property 

Department at Al-Tamimi & Company, 

who discussed the new provisions of the 

Rent Cap Law 2007 and its effects on both 

landlords and tenants, and the health of 

Dubai’s economy as a whole. She also 

discussed how the law affects different 

rent and lease agreements which were 

agreed before the issuing of the law. 

"The Rent Cap Law will act as a stabilising 

factor in the booming real estate sector in 

Dubai and will help both landlords and 

tenants make longer term decisions," said 

Adel Lootah, Executive Director of 

Dubai Property Group. "In this respect, 

DPG will act as a forum for the real estate 

industry to express their opinions and 

feedback with regard to the Law, and 

will raise these issues with the 

relevant authorities." 

“ 

The massive rent 

increases witnessed since 

2001 have caused some 

businesses and families to 

question whether they can 

afford to live and work in 

Dubai 

” 

"The capping of rent increases is an 

effective method of slowing down the 

huge hikes in rent that have been 

witnessed in Dubai over the last five years 

in the interests of bringing stability to the 

market and confidence that Dubai will 

remain a competitively priced place to live 

and work in the short and medium term," 

commented Lisa Dale. "The Government’s 

Rent Cap policy was designed to meet this 

challenge head on. For Dubai to retain its 

position as a business hub for the region 

and for it to sustain its current growth 

path, it must remain competitive." 

"The Rent Cap policy that was introduced 

in 2006 and which has brought further 

rent increase restrictions for 2007 will, I 

believe, give confidence to all those 

businesses and workers that represent 

Dubai's potential for growth in the future. 

However, I do question whether simply 

imposing a mandatory rent increase 

cap on all landlords and tenants and in 

respect of all properties is a total solution," 

she continued. 

Firstly, the Law assumes that a rent being 

paid by a tenant is representative of 

market value in the first place. Cases have 

emerged where new shopping malls and 

commercial complexes, where a developer 

will offer discounted rents during the first 

year of operation as an incentive to attract 

tenants to the development. Landlords 

who signed such tenancies in 2006 

cannot now apply any increase in the 

rents in 2007 to bring them in line with 

market rates. 


Retail 17 

"Combining a cap on rent increase with the 

publication of recommended ranges of 

rates per square foot for different types of 

property would help to ensure that 

landlords continue to obtain a fair rent for 

their property relative to the market," 

she commented. 

Consideration could be given as to 

whether the provisions of the Rent Cap 

Decree should be mandatory on all 

landlords and tenants or whether in some 

cases the parties should be free to contract 

upon their own terms agreed between 

them with the Rent Cap Law acting as a 

safety net for tenants if landlords demand 

too high a rent when discussing renewal of 

the tenancy. The argument for this is 

particularly strong with regard to 

commercial property, where the parties 

often enjoy equal bargaining power. This 

will become more the case as more new 

units are delivered on to the market during 

the course of 2007 and 2008 and supply 

and demand begin to equalize. 

"The Rent Cap Law applies to all 

properties in Dubai whether they are 

residential, offices, shops, warehouses and 

so on. It is not correct to say that the 7 

percent cap on increases applies to all 

tenancies since, as is often the way, there 

are exceptions to the rule. What the law 

“ 

The capping of rent 

increases is an effective 

method of slowing 

down the huge hikes in 

rent that have been 

witnessed in Dubai over 

the last five years ... 

” 

says is that rent shall not be increased by 

more than 7 per cent for tenancies that are 

renewed during 2007," said Dale. "But 

there are circumstances in which no 

increase at all will be permitted and other 

circumstances in which increases of 

perhaps more than 7 per cent maybe 

permitted." 

This means that the 7 per cent increase can 

only be exercised by landlords on 

tenancies that did not witness a 15 per cent 

increase in 2006 or if the tenant leased the 

property from the landlord for the first 

time during 2006. On the other hand, the 

Rent Committee may allow an increase in 

rent in excess of 7 per cent in respect of 

leases of three years or more that are 

renewable during 2006 or 2007. In such cases, 

the Rent Committee will allow an increase 

in rent to bring it in line with market rates. 

"Historically, the practice of the Rent 

Committee has been to allow landlords to 

increase rents in line with the market, but 

without defining any exact percentage of 

increase. Up until 2002, rent increases 

in this way were permitted every two 

years. The Rent Committee changed its 

policy from 2002 through to 2005 

when it would permit annual rent 

increases in line with market rates," 

she continued. 

To put Dubai’s Rent Cap Law into some 

perspective, it is useful to look at the 

policies of the other Emirates on this issue. 

All other Emirates apart from 

Fujairah seek to impose regulatory 

controls on rents within their Emirate. 

Abu Dhabi restricts rent increases to 7 per 

cent for tenancies that have a term of three 

years or less. Sharjah allows no increases in 

rent during the first three years of a 

tenancy but after that the rent may be 

increased in line with market values. In 

Ras Al Khaimah, rent increases are capped 

at 15 per cent following a Ruler's Decision. 

Ajman permits an increase of 20 per cent 

once every three years, and finally, Umm 

Al Quwain permits an increase of 10 per 

cent per annum but, uniquely, permits the 

landlord and tenant to reach some 

alternative agreement. 


18 Logistics 

Positioning Dubai as world’s logistics center 

Dubai Logistics City 

The typically complex supply chain has 

dramatically soared to greater heights 

when manufacturers shifted production 

to the Far East. This, fundamentally, was 

meant for a substantial reduction in cost, 

usually on material expenses. 

Consequently, the shift altered how 

businesses are run that establishing an 

effective supply chain has become the 

highest management priority. 

Dubai Logistics City, the ambitious project 

that promises to be "the world’s first truly 

integrated logistics platform," has been 

making waves since its first stages of 

development two years ago. And with its 

anticipated onset, DLC CEO Michael 

Proffitt has been very busy managing the 

challenge of turning the grand concept 

into reality. 

Transcontinental supply chain 

According to Proffitt, looking at a global 

perspective, the move of manufacturing 

toward the Far East has made supply 

chains longer and more complex, "because 

you’re now physically splitting the 

manufacture to the consuming market." 

"With the switch of manufacturing to the 

Far East, particularly in China, there is 

now a need for a hub in the Middle East. 

Just because of the sheer volume of traffic 

Michael Proffitt 

CEO, Dubai Logistics City 

flowing through," he explained. 

At the same time, Proffitt added, customer 

service is becoming higher and higher up 

the agenda of industry players "as 

customers are now very clear on what 

they want and when they want it." 


Logistics 

19 

"You’ve got product life cycles that are 

getting shorter so there are new products 

coming on the market all the time so 

therefore you really need to move from 

research and development to its 

manufacturing to consumer market to sale 

as quickly as possible," he stressed. 

Proffitt also related that he feels that the 

Middle East has a "very buoyant economy, 

stock growth and a lot of consumers. So, 

historically, the markets were really served 

probably from Europe. Now, we believe 

there is a need to establish hubs in the 

Middle East to service the greater region, 

which includes the South East, CIS, India 

Sub Continent, and Africa." 

Best location possible 

"The question now is: where shall we base 

the hub?" Proffitt emphasized. 

A hub is a transit orbit for passing cargo 

through, he said, and in the whole of Middle 

East, Dubai in UAE is the best location 

possible for "a wide range of reasons." 

"In Dubai, you’ve got the Jebel Ali Port, 

and Dubai International Airport – the 

number nine container port in the world 

and the main regional airport with very 

high transit cargo both through the port 

and airport, which is essential for a hub. 

And on the cargo side, there’s Dubai 

Cargo Village, which is faring really 

strongly and is doing a fantastic job," 

Proffitt said. 

However, according to Proffitt, there are 

constraints. "The International Airport is 

doing well, but it is being constrained by 

only being able to have only two runways. 

You cannot expand the number of 

runways; therefore, there is a need at some 

stage, for a new airport." 

"As the air cargo grows, you need facilities 

in order to handle that cargo, in addition 

to what’s there. And that’s why the new 

airport came into being," he continued. 

Proffitt was quick to add, though, that 

there is no competition amongst the 

DAFZA, JAFZA and DLC. "DAFZA is 

supporting the international airport, 

JAFZA is supporting the sea port, and 

now DLC will be supporting the new 

international airport. It is not a 

competition. The Dubai government has a 

very clear focus on developing its 

infrastructure to be a leading hub in the 

Middle East and that requires both 

support on the air side and sea side. So, 

there is a clear role for DAFZA, JAFZA 

“ 

DLC connects 

the port, the airport, 

and the road 

network to create an 

integrated logistics 

platform. 

” 

and DLC. We will focus on logistics 

community to have an element of our 

business within the air freight," he explained. 

In all, Proffitt said, "the supply chain is 

driving the need for a hub; and with all the 

benefits that you get from Dubai – you’ve 

got all the free zones, you’ve got the right 

business environment – it is really the best 

to do business within the region. It is the 

natural choice." 

Truly integrated 

According to Proffitt, DLC’s role is "to 

provide a logitics platform where 

companies can come in and develop their 

facilities, have room to expand and with 

all of the free zone benefits and all of the 

services that we can generate to make sure 

that they can carry out their role as 


20 Logistics 

efficiently as possible to service 

their customers." 

"Because you’ve got the port and the 

airport within 10 kilometers of each other 

and you’ve got this all in one customsbonded 

area, you’ve got the most 

advantageous situation you can possibly 

have. DLC connects the port, the airport, 

and the road network to create 

an integrated logistics platform," 

Proffitt explained. 

Spread over 25 kilometres, DLC is a key 

component of the world’s first truly multimodal 

transport platform under a single 

customs-bonded and free zone area. 

"Most logistics service providers setting 

up in Dubai realise that together with their 

existing customers they can use the 

logistics platform to develop the logistics 

“ 

We are not after 

growth at any cost. 

We are very focused 

on what we want in 

DLC. Our objective 

clearly is to develop 

the logistics supply 

chain community, 

which has an element 

around the air freight 

industry. 

” 

business in the greater region and also use 

the emirate as a hub for transcontinental 

supply chain business, linking Asia with 

African and European markets. This is the 

unique business proposition of DLC," 

Proffitt said. 

Due to be operational at the end of 2007, 

DLC, which is the first phase of the huge 

World Central project, will eventually 

combine all required transport modes with 

a logistics zone with ample space for 

warehousing and other logistics services, 

such as order fulfillment, merge-in-transit, 

postponement-in-assembly, kitting and packing. 

Target clients 

Over a hundred companies have reserved 

space in DLC already, with about 3 million 

square meters of land. But, according to 

Proffitt, "we are not after growth at any 

cost. We are very focused on what we 

want in DLC. Our objective clearly is to 

develop the logistics supply chain 

community, which has an element around 

the air freight industry." 

This way, Proffitt explained, "we can 

actually ensure that the companies within 

the DLC are all supported and that they 

can continue to grow and develop and 

that they’ve got space to grow." 

"It’s not about how quick we can fill this 

up, it’s about providing the platform, so 

that the companies can expand, but also 

new companies can come in. So it’s not a 

rush to fill the space, it’s about getting the 

right companies and the right profile. 

We’re aiming to bring in all the support 

industries around the logistics community 

as well," Proffitt stressed. 

Moreover, Proffitt related that India is an 

important market for DLC in terms of 

transit cargo to Dubai, but "we are taking 

the presentation around the world to 

make sure we explain to the logistics and 

air freight communities what we’re 

developing, and it’s their decision 

whether DLC is right for them or not. We 

believe we’ve got a very strong value 

proposition but each company has to 

decide for itself whether DLC is the right 

place for them to operate from." 

With regard to WTO and the Customs 

Union, Proffitt feels that "it will just allow 

Dubai to continue to grow." 

"Dubai will be a central point for the 

region. Not the only point. But if you look 

geographically, there are only certain 

places in the world that could be major, 

significant hubs. These could be hubs for 

specific reasons in different countries, can 

be different value propositions. But main 

hubs, there could only be a few. 

Netherlands in Northern Europe; 

Singapore and Hong Kong in Asia. Dubai 

is in that league," Proffitt said. 

Challenges 

Proffitt related that since he joined DLC, 

"it has been a very busy and challenging; 

but also very interesting, worthwhile and 

fruitful." 

He continued that his main motivation in 

joining DLC is the once-in-a-lifetime 

opportunity to be part of such a big project. 

"I can’t conceive there will be any projects 

on the scale as big as DLC. There are other 

logistics cities but given the vision of this 

project, and looking at it 50 years from 

now, where it would take Dubai as a hub – 

makes the project very special." 

And although Proffitt is excited about the 

future of DLC, he is clear on the challenges 

of the present. "It’s really just making sure 

that we develop the platform successfully, 

that we allow the customers to start their 

business. We need to get our platform to 

work efficiently from day one. And we 

need the new airport opened for cargo 

flights," he related. 

Moreover, despite reports of traffic 

dominating media headlines over the past 

months saying that the ports and streets of 

Dubai are getting too much clogged, 

Proffitt believes that street transportationrelated 

concerns do not threaten Dubai’s 

place as a logistics hub of choice, pointing 

out that, "one cannot underestimate 

the government and the traffic authorities 

and their efforts in terms of 

providing more road space and to 

accommodate vehicles." 

"Traffic is obviously an element – but to 

see it as threat, no. The great thing about 

DLC is that you’ve got the sea and air 

ports together so it will not leave the 

airport, but it will transit through. The key 

value proposition of a hub is a passthrough 

business – it’s not into Dubai or 

the UAE, it’s going into the greater region. 

The creation of DLC will actually help the 

traffic situation. If you look at the GCC, 

most of the traffic from JAFZA and DLC 

will go through to Iraq, to Saudi – it will 

go up country," Proffitt said. 


22 Warehousing 

Promoting Sharjah’s image as warehousing hub 

Emirates Industrial City 

Mohammad Al Hazzaa, Director General 

of Emirates Industrial City (EI City) 

"doesn’t believe in propaganda." So when 

asked about the recent developments on 

the anticipated mammoth industrial city 

unveiled by developer Al Hanoo Holding 

Company in late 2004, the composed 

Director General took The LINK in a 

virtual tour to the foreseen ‘newest 

business address’ in the UAE. 

Imagine this: a multi-billion project, made 

up of 83 million square feet of land tailormade 

for any type of business needs; with 

a tax-free environment (no corporate, 

income, export and re-export tax); low 

import duties (maximum of 5 per cent); 

free transfer of currency; comprehensive 

and modern road network; reliable power 

distribution network; abundant water 

supply; modern telecommunication; and 

availability of natural gas. Like any other? 

Think again. 

Multi-purpose, mixed-use 

"The whole project is divided into eight 

sectors, six of which are meant for multipurpose 

requirements. This means, there 

is a degree of flexibility. Different 

investors, from light to medium industry, 

such as food processing, packaging, 

furniture, light chemical industries, 

workshops, etcetera – they could move in and 

build their factories," Al Hazaa explained. 

Several 

investors have 

already pre-booked 

because of our 

flexible rates and 

conditions, plus we 

truly believe that 

our project is ready 

to go. 

“ 

” 

Located in Al Saja’a – Al Khawaneej 

Highway, Sharjah, Al Hazaa believes that 

one of the many advantages of EI City is 

its strategic location. "Emirates Industrial 

City is only 5 minutes away from Sharjah 

airport, 30 minutes away from Dubai 

airport; and is positioned at a strategic 

location serving the major sea and air 

ports in the area, beside some other 

destinations in the UAE." 

More importantly, though, Al Hazzaa 

emphasized the project’s "attractive and 

transparent rates." In fact, allocations in 

two of the industrial city’s eight sectors 

are already sold out (Sectors 5 and 7). 

There are currently over 300 companies in 

operation at Sectors 5 and 7; and the sale 

of lots is in progress for Sector 2. 

In a previous report, EI City Chairman, 

Sheikh Abdullah Al Shakra, revealed that 

"investors in Emirates Industrial City 

Mohammad Al Hazzaa 

Director General, Emirates Industrial City 

earned an 87 per cent return on 

investment within six months of the 

inauguration of the project." 

Meanwhile, Sectors 6 and 8, according to 

Al Hazzaa, are dedicated for 

warehousing, logistics operations, and other 

support services. 

"The total area of the warehousing project 

is 23 million square feet. A total of 425 

units could be built on that site. Each 

building unit could be sub-divided into 2 units, 

so practically, that project could accommodate 

up to 4,000 tenants," Al Hazzaa related. 

The design of the warehouse project, 

explained Al Hazzaa, was made "to be 

accessible from at least two main roads for 

flexibility, so the trucks could move and 

go around, without causing traffic jam." 

Moreover, the buildings in the units 

"could have a mezzanine, for whatever 


Warehousing 23 

purpose the investor deems, like an office, storage area or for front 

desk operations," Al Hazzaa said. 

As for the accommodation of labourers and employees within the 

industrial city, Al Hazzaa related that, "25 per cent of the project 

is allocated to build housing complexes that cater to the needs of 

labourers and employees in different sectors. The housing 

facilities include health care centres, convenient shopping stores, 

and other requirements for the community." 

"Emirates Industrial City is a stand-alone city. Our master plan 

allocates areas for landscaping and recreation to offer an attractive 

and healthy working environment," Al Hazzaa continued. 

Terms and considerations 

The warehousing project is marketed mainly to logistics, 

shipping, and cargo operators due to the location of the project, 

explained Al Hazzaa, but promptly stressed that the units are also 

designed to accommodate "light assembly operations, 

distribution centers, and even trading activities." 

"We envision this site to be a zone dedicated for furniture traders – 

where they could assemble, store, and trade at the same place. 

Because most furniture showroom warehouses in the UAE today 

include only a limited space for storage and no allocated space for 

assembly or trading – and that’s where we’re different," Al Hazzaa explained. 

On availability concerns, Al Hazzaa explained that, "the 

warehouses won’t be for sale, but are available on a lease basis – 

with one year as a minimum lease period." 

"The spaces are available on a short, medium and long lease 

terms. These considerations are provided to clients, but we 

encourage the medium and long term basis, so they could ease 

their minds when it comes to fluctuations. Another option that we 

are willing to consider is fixed rates for 10 to 20 years of lease," Al 

Hazzaa related. 

All set 

According to Al Hazzaa, the first phase of the whole EI City 

project will be finished "hopefully by the end of 2007; and the 

warehousing project, by the end of 2008." 

"Several investors have already pre-booked because of our 

flexible rates and conditions, plus we truly believe that our 

project is ready to go," Al Hazzaa said. 

However, the Director General encourages would-be investors to 

come visit the site, which is now accessible via the Sharjah Road, 

Exit 7. "Seeing is believing. And right now, some units are ready. 

The infrastructure is done. Come and see the possibilities our project 

offers." 

"We are currently in discussion with big groups in warehousing 

facilities and other industrial companies; and they look forward 

to when Emirates Industrial City becomes their business address, 

much like Jebel Ali and the others. Definitely very soon, Emirates 

Industrial City would be a major address on the map of UAE," Al 

Hazzaa concluded. 


Dubai Maritime City 

set to make waves 

Amer Ali 

Project Manager, Dubai Maritime City 

Building on Dubai’s maritime heritage, Dubai Maritime City (DMC) is 

supposed to be an iconic multidimensional centre that creates a unique world 

class environment for the global maritime community. 

BY establishing a host of "Cities," Dubai 

has truly become a Global City in itself. 

It has turned the Cities into world class 

hubs of their respective industries. These 

Cities house a multitude of 

multinational companies and helped the 

emirate to attract foreign direct 

investment worth billions of dollars. One 

such prime example is Dubai Maritime 

City (DMC). 

The establishment of Dhs3-billion Dubai 

Maritime City has been making waves in 

the global maritime industry while the 

nascent regional maritime industry 

considers it a much-needed shot in the 

arm. Through DMC, the emirate can fully 

capitalise on its nautical heritage with 

yet another world-first conception that 

will not only enhance its position 

within the UAE but also its status as a 

trade link between Europe and Asia. 

Dubai Maritime City Project Manager 

Amer Ali says, "We are creating an 

infrastructure that is unique and focused 

on maritime community needs. The 

project will be a benchmark the size and 

value of the Dubai maritime cluster. 

We aim to be among the world’s 

prestigious top ten centres in terms 


Cover Story 25 

of economical contribution and number of 

maritime businesses." 

Upon completion, the total expected 

population inclusive of people who will 

live and work in the Maritime City will be 

over 100,000 and will have capacity for 

more than 100 yachts to be berthed. 

Comprising of six distinct districts with 19 

towers in total, DMC meets all the modern 

requirements of a maritime base. It offers 

state-of-the-art infrastructure, outstanding 

services and regulations. The free zone 

provides a unique and business-friendly 

environment that helps the zone-based 

companies to promote the networking 

and integration with the peers around 

the globe. 

The Dubai Maritime City was conceived, 

and being developed, considering the 

needs of both local and international 

marine and maritime communities for a 

dedicated hub in the region. The world’s 

largest and most comprehensive maritime 

complex, DMC is the first purpose-built 

city designed specifically to serve and 

enhance the global maritime community. 

It will cater six large and diverse sectors 

and provide every element of 

infrastructure required by them. They 

include marine services, management, 

product marketing, research and 

education, recreation and ship design 

and manufacturing. 

Commenting on the world-class facility, 

Ali says: "This is a project of phenomenal 

proportions, creating a peninsula 

reclaimed from the sea spanned over an 

area of 2.27 million square metres with 

open sea access and as stunning location 

for a maritime business. As it evolves, it 

will cluster together every amenity that 

the global maritime community needs to 

build, work, live and learn." 

He says, "We completed reclamation and 

development of Eastern and Western quay 

walls in August last year; the second 

phase of the industrial precinct 

infrastructure construction work — which 

mainly comprises of civil, mechanical and 

electrical works — is progressing at a fast 

pace. The construction work on the 11- 

level Central Administration Building — 

which would form a vital part the 

industrial zone — dry berths, slide ship 

transfer pit and multi-purpose industrial 

warehouses has been initiated; 

construction activity is continuing at a 

brisk pace and we are sailing well 

on schedule." 

The second phase encompasses 240,000 m 3 

of concrete, including landscaping, gravel 

infill and block paving. 

One of the key features of the industrial 

sector is two shiplifts situated adjacent to 

each other. Manufactured by Hydraudyne 

Rexroth, one is 90 metres long and 25 

metres wide — designed to lift vessels up 

to 3,000 tonnes — while the other is 140 

metres long and 30 metres wide and 

designed to lift boats up to 6,000 tonnes. 

Both shiplifts are capable of 14 metres 

vertical travel and the platforms and 

vessels are raised and lowered by a series 

of winches and steel ropes along the 

length of the lift. 

The scope of construction work comprised 

earthworks, associated structural walls 

and piles. The construction of the dry 

berth area encompassed 144,792 m2 while 

the total area of the transfer pits is 67,805 

m 2 . The shipyard substructure will 

encompass in-situ cast reinforced concrete 

foundation with shear keys and structural 

walls for mounting steel rails. The total 

length of these rails is 39,462 linear metres. 

The placement of the shiplift platform is a 

key milestone for Dubai Maritime City, 

indicating the fast pace at which the 

project is being developed. This procedure 

and activity is critical as it will pave the 

way for future developmental work at the 

Industrial Precinct and will provide a 

major boost to our iconic project and is in 

line with our objectives to have easy 


26 Cover Story 

access, conformity and fulfillment of our 

industry requirements. 

Ali says Dubai Maritime City has a 

tremendous potential. It is going 

to significantly contribute to the 

business environment in which 

maritime companies operate regionally 

and worldwide. 

The free zone has witnessed a strong and 

overwhelming response. It has registered 

and issued licences to a number of 

multinational ship-building and maritime 

industry-associated firms. To make most 

of the state-of-the-art facilities, ship repair 

specialist Jadaf Dubai has announced to 

shift its base to the free zone. Relocation to 

the Maritime City would help the marine 

facilitator to unveil a range of new 

services. The relocation to Dubai 

Maritime City involves increasing the 

lifting capacity to 6000 DWT and 

providing an extended dry and wet 

berthing area, thereby increasing capacity 

several-fold. 

Jadaf Dubai ship repair yard last year 

conducted a total of 2,321 liftings of 

vessels of different sizes at its dry docks. 

Jadaf Dubai is constructing two shiplifts in 

Dubai Maritime City. They will be 

equipped with state-of-the-art facilities to 

meet the demand for ship maintenance. 

Highlighting benefits of Dubai, he said 

free zone is the natural choice for maritime 

majors to make it a regional base. Dubai's 

enviable geographical location at the focal 

point of the hemispheres makes it one of 

the best-suited locations for this 

undertaking. Dubai Maritime City will 

provide access to an already thriving 

regional market, immediate access to 

specialist labour resources and close 

proximity to value chain partners. It will 

be a commercial environment that caters 

to each and every facet of this fascinating 

global network, becoming in itself a 

new dimension in the international 

maritime scene. 

As it evolves, 

it will cluster 

together every 

amenity that the 

global maritime 

community needs 

to build, work, 

live and learn. 

“ 

” 

Considering its commitment to the 

maritime community, DMC intends to 

open a centre of learning and excellence in 

its precinct. The Academic Quarter will 

lead the way in the Middle East and 

broader region for maritime training and 

research as well as complement the 

various needs of maritime tenants and 

related businesses. 

The launch of Dubai Maritime City has 

also given shot in the arm to Dubai 

International Boat Show, growing by leaps 

and bounds. The expo now hosts a record 

number of companies at the show and 

expects to receive greater number of 

visitors for this year’s edition. This 

signifies the substantial growth in the 

marine and maritime industry the region 

is witnessing, resulting in turning Dubai into 

a regional hub for the maritime industry. 

The concept of Dubai Maritime City was 

created through the vision of His 

Highness General Sheikh Mohammed Bin 

Rashid Al Maktoum, Vice-President and 

Prime Minister of the UAE and Ruler of 

Dubai, in response to the need to relocate 

the emirate’s oldest ship repair facility, 

Jadaf Dubai. This relocation became 

the inspiration for an entire city to cater to 

the needs and requirements of not just 

Dubai’s, but all maritime businesses 

world wide. 


28 Special Report 

KCT, Sharjah Terminals report rapid growth and continued expansion plans 

Sharjah Ports Booming 

Moving forward 

The company’s 30th anniversary, 

celebrated last year coincided with the 

decision to raise its profile internationally 

in the ports and transport industry. 

According to Richards, “We firmly believe 

in Sharjah’s positive approach. The very 

ethos of a port and its success revolves 

around its ability to develop and stay one 

step ahead of its customer’s demands; not 

to stand on its laurels, nor to rely on past 

performances and achievements, but 

to progress.” 

Though the saying “time and tide wait for 

none” may sound cliche, it holds true for 

the Ports and Shipping industry. Taking a 

step further, Gulftainer, the single largest 

privately owned port management 

corporation in the UAE has decided to 

flow with the tide, as Sharjah and Khor 

Fakkan terminals possess potential to 

power UAE in the trade world. 

To understand the natural strategic 

advantage that Sharjah and Khor Fakkan 

terminals enjoy, all you need to do is 

scrutinize their geographical positioning. 

Sharjah is nestled in the Arabian Gulf 

coast, whilst Khor Fakkan is on the UAE’s 

East coast. Both terminals serve as ideal 

gateways linking the Gulf region to 

several major trade routes. 

"We are exalted at the recognition 

awarded to Sharjah Container Terminals, 

as shipping lines and their customers 

have reacted positively, to the changing 

Peter Richards 

Director and General Manager, Gulftainer 

logistics environment in the UAE. 

Sharjah’s ports are offering faster, 

cheaper and more accessible delivery 

options than alternative gateways," 

related Peter Richards, Director and 

General Manager, Gulftainer. 

“ 

We firmly believe in 

Sharjah’s positive approach. 

The very ethos of a port and 

its success revolves around 

its ability to develop and 

stay one step ahead of its 

customer’s demands; not to 

stand on its laurels, nor to 

rely on past performances 

and achievements, but to 

progress. 

” 

Building on its impressive 2005 

performance, Sharjah Container Terminal 

2006 volumes have jumped by a 

whopping 24 per cent over the previous 

year, prompted by good terminal 

performance, a wide range of shipping 

lines offering direct and relay services. 

"With the Sharjah government and 

Gulftainer investing in new equipment 

and new improved facilities at the 

terminal, we believe that 2007 will be 

another record breaker," he added. 

With the present expansion programmes, 

two new Post Panamax gantries, as well 

as landside handling equipment and 

trailers are to be purchased. Two new 

MHCs have already been delivered and 

are now in operation. Also, an additional 

berth will be created at right angles to the 

current terminal, overall draft will be 

improved to 12.5 meters and additional 

storage area of 30,000 square meters will 

be constructed. 

Khorfakkan Container Terminal volumes 

have gone up tremendously in the first 

months of 2007. “The ratio of 

transshipment to local cargo has changed 

very little over the last three years at either 

port, although forecasts suggest that local 

volumes will continue to grow 


Special Report 29 

throughout 2007 and 2008,” said Peter 

Richards. “This is due to various factors, 

the high cost of marine fuel still makes it 

attractive to drop local cargo outside the 

Hormuz Straits, while transshipment 

volumes will continue to grow due to the 

present poor productivity and inherent 

restrictions at ports in both Pakistan and 

India prevent sending the latest 

generation deep sea vessels there.” 

Indeed, KCT is of vital importance as the 

major transshipment port in the region for 

three of the world's leading shipping lines 

(CMA-CGM, UASC and Hanjin/Senator). 

It is not so easy 

The inauguration of a fully outfitted new 

container berth in any port is a happy 

occasion and visitors marvel at the space, 

order and cleanliness that is apparent to 

their view of the new facility. What is not 

normally taken into consideration is the 

amount of hard work required from all 

the concerned parties to ensure that said 

facility operates at the highest 

productivity levels. Khorfakkan has the 

distinction of being the most productive 

port on the East - West trade routes. 

Something to be truly proud of. 

Although Richards concedes that 

competition does come from both Dubai 

and Salalah, each has distinct 

disadvantages compared to KCT. 

Dubai, for example, is geographically 

located within the Arabian Gulf and is 

experiencing distribution difficulties, 

while the continuous rising costs of doing 

business there has prompted several lines 

to investigate alternatives. Salalah, which 

remains predominantly a Maersk Port, 

requires a more expansive feeder network 

to cover the much longer routes into the 

Gulf, Iran, Iraq, Pakistan and India. 

This, he notes, is why it is an ideal 

location for such a giant as Maersk, which 

operates countless interconnecting 

services, but un-suitable for the majority 

of the other lines. Such has been the 

growth momentum at Gulftainer that it 

has recently entered a strategic agreement 

with the government of the Comoros 

Islands, to manage and upgrade the ports 

of Moroni and Mutsamudu. It has also 

reached an agreement with the Pak 

Shaheen Group based in Karachi, to 

establish a joint venture company 

focusing on inland logistics and 

transportation in Pakistan. Currently, 

Gulftainer is the appointed consultant to 

the Kuwait Port Authority. 

In addition, Gulftainer opened its new 

warehouse facility, located on the border 

of Sharjah and Dubai, near the Emirates 

and ‘Outer Ring’ roads. 

Richards struck an upbeat note while 

stating, “UAE is the third most active reexport 

centre in the world, and with its 

attractive business environment Sharjah is 

playing a key role in helping the UAE 

strengthen its position.” 

The future is certainly bright. Gulftainer’s 

endeavors have initiated a positive 

momentum. “We are presently evaluating 

requests and projects in Europe, North 

Africa, the Middle East and South East 

Asia,” – as they say “watch this space!”– 

Richards revealed. 



Thriving under solid leadership 

Hamriyah Free Zone 

As the UAE began reaping the benefits 

of a booming supply chain with the first 

decade of Dubai’s Jebel Ali Free Free 

Zone in 1995, Sharjah became the 

obvious Emirate to take initiative in 

further developing the industrial arena 

of the region, with its unique strategic 

location between three continents, and 

being the only Emirate with seaports on 

the Arabian Gulf and the Indian Ocean. 

Taking advantage of the logistical, 

warehousing and distribution potential, 

an Emiri Decree of Regulation was 

created that same year to establish the 

Hamriyah Free Zone (HFZ). 

Over forty per cent of the total number 

of industries in the region is based in 

Sharjah, consisting of petrochemicals, 

textiles, leather, food, and basic nonmetal 

manufacturing. But even then, 

HFZ’s bright future was only halfrealized. 

Like any other organization 

awaiting imminent feat, HFZ needed 

a leader to define the course to 

its success. 

Figures speak 

From 1995 to 1998, the infrastructure on 

the HFZ took place, with only a few 

companies fully operating from the 

free zone. 

“Our vision is to attract the heavy 

industries and the medium-scale 

HFZ FAST FACTS: 

YEAR COMPANIES 

2000 132 

2001 186 

2002 257 

2003 370 

2004 610 

2005 1034 

2006 1562 

2007 2035 (forecast) 

project, which adds value to the local 

and federal economy of the UAE,” said 

Dr. Rashid Al Leem, Director General of 

HFZ. From only a few hundred 

companies leased in 2000, when he took 

his seat as DG, now, the zone services 

“1700 companies from 100 nations.” 

Dr. Rashid related that their success is 

attributed to his team’s implementation 

of “strong marketing strategies and a 

clear-cut vision on where (the 

organization is) going.” 

“When I came in, the direction was to 

go international. So we acquired all the 

certifications that we needed to achieve 

our goal – we have the ISO 9000, 14000 

and we have the OHSAS. We have also 

won a number of international 

certificates from England, Germany, 

France, Italy, and Spain, among others.” 

“Besides we do a lot of traveling 


worldwide to promote our free zone. We have covered 

countries in North and South America, Europe, Australia, 

Africa, and Asia. And we’ve been very successful in 

communicating with the biggest communities. And that is 

basically the reason of our success,” he explained. 

Dr. Rashid also cited that his concurrent position as DG of 

Sharjah Ports Authority helps the credibility of the free zone as 

the industrial hub of choice. “I handle Customs, Ports and the 

free zone. Since I manage all three, this gives the customer the 

level of confidence. This gives the customer the full solution; a 

customized solution on import, export and re-export. Hence, the 

customer doesn’t need to run up and down to get the answer for 

a small question, which enhances the business cycle.” 

Challenges 

Despite the emphasis on road congestion being a hindrance on 

Sharjah’s economic development, Dr. Rashid believes 

otherwise. 

“I don’t think the traffic in Sharjah prevents businesses to come 

in. Money has no ethics, unfortunately – that’s my philosophy. 

Money needs a place where it feels good – where it feels secure. 

Even if (your business is somewhere) in the jungle of Africa, 

and the returns are higher, believe me, you would see business 

people there. Business people are smart people. You see them 

everywhere in the world, wherever the money is. So road 

congestion – yes, it is there. But the government is working day 

and night, building different channels, widening roads, and 

road bridges,” Dr. Rashid explained. 

What the DG emphasized on, however, is the importance of 

planning in a developing economy. “What people don’t realise 

is, the growth rate is not matching planning rate. The growth 

rate is so high that the planning is not catching up.” 

Plans 

The gross leasable area in HFZ Phase 1 is 11 million square 

meters, where 90 per cent has been occupied; while phase 2 is 

another 11 million, where 70 per cent has been leased already. 

“Phase 2 is currently undergoing a massive development of the 

land – building offices, warehouses, etc. We are happy that the 

growth rate for the free zone has been almost 40-50 per cent for 

the last 3 years,” Dr. Rashid said. 

He related that the main focus of the business at the moment is 

on the maritime side. “Worldwide, the Gulf region has become 

one of the lands for hosting the maritime industry. The 

Hamriyah Free Zone is building the facilities related to this,” he 

explained. 

“My vision for the future is to enhance the international 

relations with Germany and other Asian countries for instance, 

to help them build their own industrial free zones; because their 

success is our success,” Dr. Rashid concluded. 

An eminent figure in the region, incumbent Director General 

of HFZ Dr. Rashid Al Leem was the natural choice for the 

position. 

At 19, Dr. Rashid became the Gas Plant Manager at Amoco 

Sharjah Oil Company, and, while employed, obtained a 

scholarship grant from the Government to study Petroleum 

Engineering. In 1995, he received a certificate in completing a 

decade of safe work in the operations from the same company. 

At 24, Dr. Rashid received his Diploma in Petroleum Refinery 

from an International Correspondence School in Pennsylvania, 

USA. He then acquired further studies by finishing his 

Bachelor of Science degree with a major in Business 

Management from Atlantic International University in 2001; 

his Masters degree in Business Administration the following 

year; then his Doctorate at the same university in 2003. 

Also an Honorary Member in Humanitarian Services from 

Islamic Supreme Council of Ethiopia, Dr. Rashid never forgot 

to give back to his community. From 1997 to 2000, he was DG 

of the Sharjah Charity International on voluntary basis. He is, 

until now, involved in several missions for humanitarian 

causes worldwide. 

It is no wonder that Dr. Rashid, at 41, is locally and 

internationally recognized, particularly when he became an 

official member of the American-based ‘who’s who of 

professionals’ in 2002; and, also in the same year, was referred 

to in Dr. Kifa Ayyash’s Golden Experiences as among the ‘Top 

100 Influential leaders of the Arabic World.’ 

In 2001, Dr. Rashid founded the Alleem Learning Center, an 

organization dedicated to helping people maximise their 

communication skills and leadership potential. 



Reclaiming Oman’s status as international logistics hub 

Port of Sohar 

power/desalination plant and a 

polypropylene plant. The methanol plant 

is expected to start commercial 

production in the third quarter of this 

year, followed by the fertilizer plant in the 

last quarter of this year. 

The economic boom in the Middle East, 

apparently, is a repeated phenomenon in 

the history of worldwide trade. Around 

5000 years ago, the ancient capital of 

Oman served as the focal transit port, 

which handled goods destined to the city 

states in primeval Mesopotamia. Exports 

then included copper, diorite, and timber. 

And that hub was Sohar. 

Now, in these modern times, when trade 

is backed by the efficiencies of logistics 

and supply chain management systems, 

Sohar rises to regain its position as one of 

the “principal trade hubs in the region” – 

with the onset of the ambitious Port of 

Sohar. And Sohar Industrial Port 

Company (SIPC), the port operator, 

expects to see this turnaround “within 6 to 

8 years time.” 

The Government of the Sultanate of Oman 

started developing the Port of Sohar as an 

industrial port in 1999 in the Al-Batinah 

region of Oman. The Port of Sohar is 

Jan Meijer 

CEO, Sohar Industrial Port Company 

managed by SIPC, a 50-50 joint venture 

between the Sultanate’s government and 

the Port of Rotterdam, until recently the 

largest port in the world. SIPC holds a 

Concession Agreement of 25 years, and 

during this time, it will be both Port 

Authority and Landlord of the industrial 

site. The Port of Sohar is one of the 

projects developed under the agenda of 

Oman Vision 2020. 

SIPC CEO Jan Meijer talks with The LINK 

and discusses the seemingly infinite 

possibilities of the anticipated mega-hub 

that is the Port of Sohar. 

Kindly give us a brief background on the 

conceptualization of the Port of Sohar. 

The Port of Sohar is a rapidly expanding 

industrial port. Sohar houses three 

clusters: logistics, petrochemicals, and 

metals. Up till now US$12 billion of 

investments is confirmed — and a lot 

more is in the pipeline. All terminals are 

up and running, as well as the refinery, a 

The Port of Sohar has bonded terminals 

which allow in/export possibilities as 

usual in a free port. The port is expected to 

have in the near future something similar 

to a ‘free zone.’ We call it a Special 

Economic Zone (SEZ). Companies which 

choose to set up their businesses in this 

zone, will work under a special one stop 

shop regime covering tax advantages as 

well as special Omanisation levels, 100% 

foreign ownership, etc. Late last year a 

first MOU was signed with a South 

African investment group. Agreed was to 

do a the joint feasibility study with 

OCIPED (the Omani Centre for 

Investment promotion and Export 

Development) regarding the development 

of a South African fresh food processing 

and distribution centre in the SEZ. 

When will the port be fully completed? 

A healthy port continues to grow and 

develop, so you cannot really say that a 

port like Sohar will ever be completed. 

The concession area in which the base 

industries and terminals are located 

consists of 2000 hectares. Almost 80 

percent of this area has been leased out. 

The rest is available for investments that 

are deep sea bound and so to speak 

missing jigsaw pieces in the clusters we 

are developing. In clusters the industries 

‘feed’ from each other and share facilities, 

which give them the benefit of scale. We 

are well ahead of schedule, because 

initially the government envisaged that it 

would take 10 more years to attract 

enough investors. In 2009 most of the area 

will be developed. 

Currently we are extending our 2000 

meter quay walls with another 2500 



meters. The Nautical depth will be 

increased to 18 meters. It will take until 

October 2008 to finalise this phase. The 

use of the extra berths is for containers, 

bulk (like iron ore pellets and alumina), 

steel as well as serving the Larsen & 

Toubro construction yard. Further 

expansion is under consideration, a 

decision is to be taken in the second 

quarter of 2007. 

How is the business growing and what 

is the port focusing on? 

The base industries are only the start of 

the industrial development in Sohar and 

the Al Batinah region. The focus is now 

shifting towards downstream industries. 

Downstream industries make use of the 

products of the base-industries which are 

present in the Sohar Industrial Port. 

Examples of their products are: plastics 

and plastic items (such as packagings, 

household items, and kitchen utensils), 

carpets, electrical equipment, car 

components, pharmaceuticals. 

Elaboration of the logistics cluster, in a 

Special Economic Zone, will give the 

economic development additional 

impetus. Distribution of fresh food is one of 

the expected developments. Industries 

provide business for service providers, 

such as financial and legal service 

providers, car rental companies, real 

estate developers, cleaning services, 

catering, and retail. 

Sohar aims to be an export port, but also 

has the potential to develop into a major 

trade hub in the region. The container 

handling capacity can, if the market 

demand is there, be increased to some 6 or 

even 7 million TEU per year. 

What are the advantages of Port of Sohar 

compared to other areas? 

The competitive advantages of the Port of 

Sohar are its geographical position, the 

deep draft, the proximity to energy 

resources, the state-of-the-art facilities, 

and the availability of labour. With the 

world’s shipping lanes close at hand, the 

Port of Sohar is an excellent point of entry 

to the countries of the Gulf Cooperation 

Council (GCC). Ships do not have to pass 

the Strait of Hormuz and enter the 

Arabian Gulf, which saves the shipping 

companies time and extra insurance 

premiums. We strive to be a ‘paperless 

port,’ allowing visiting ships to use a 

web-based vessel notification system; this 

obviously speeds up procedures. 

Sohar aims to 

be an export port, 

but also has the 

potential to 

develop into a 

major trade hub 

in the region 

“ 

” 

Furthermore, the port is connected by 

excellent roads to its hinterland, with 

Dubai, Abu Dhabi, Al Ain and Muscat 

within a circle of 240 km. Sohar is also 

within close reach of the booming 

economies of the Indian Subcontinent and 

the eastern coast of Africa. Therefore, 

Sohar potentially is an international 

logistics hub. Because the port has its own 

captive cargo base, this helps create a 

balance between empty and loaded 

containers in contrast with regional 

container shipping trends, thus reducing 

the price of transports to Sohar. The 

awareness of these advantages is 

growing. That’s why we were able to 



attract world leading companies like Air Liquide, Alcan, Dow 

Chemicals, Hutchison Port Holdings, Larsen & Toubro, LG, MAN 

Ferrostaal, Methanol Holding International, Odfjell, Oiltanking, 

Shadeed Iron & Steel, Steinweg and Suez. In addition to this I 

want to stress the positive role of the Omani Government. The 

Government of the Sultanate has shown itself very, very 

supportive. 

What were the challenges in putting up the port? 

The challenge was to make it happen. It is inevitable for a project 

of this scale to meet skepticism in the first stages. We have left that 

all behind; people actually see that the skyline of Sohar is rapidly 

changing. The result is that Sohar is now becoming a magnet for 

new investors. So the vision of the Government and the Port of 

Rotterdam was right. 

What other challenges do you foresee? 

You have to keep in mind that heavy industry is new to Oman. Oil 

installations were the closest thing so far. At the same time we 

want to be a world class industrial port. That is why a strict Health 

Safety and Environment regime has been imposed. It is very 

important that all the industries comply with these rules. We as a 

Port Authority and the Government have to make sure that the 

system works. That is the first challenge. 

The second challenge is to establish a good relation with the 

neighboring villages. People in Oman are not used to heavy 

industry. So these people have a lot of questions. We cannot 

simply tell them that the port offers job opportunities, we have to 

explain a lot more. That is exactly what we are working on. 

How do you see GCC Customs Union influencing the business 

in the port? 

The free movement of goods among the GCC States is 

tremendously important. The GCC Customs Union started on the 

1st of January 2003. That was right in time for Sohar. Especially if 

you know that we expect to be a supplier to the UAE. Hopefully 

the authorities will manage to accelerate the border procedures 

that still exist. But I am confident that it will be possible to 

transport a container in less than 3 hours to Dubai in the 

near future. 

Kindly describe how you see the role of Port of Sohar in the 

future of Oman. 

The Port of Sohar was intended to boost the economy of the 

Northern part of Oman – and that is just what it does. If almost all 

of the industries within the 2,000 ha industrial port are 

operational, according to schedule in 2009, the direct employment 

will be around 8,000 jobs. Indirectly the industries will employ 

another 30,000 people. These figures are based on confirmed 

projects. If we include new arrivals and downstream industries, 

which are much more labour intense, we are talking about a 

multiple in the coming 20 years. This will change the region and 

ultimately the country in many ways. Leisure activities 

will come up, hotels, restaurants… So the influence of Sohar will 

be considerable. 



Reaching out to potential companies and investors all around the world 

RAK Free Zone 

Oussama El Omari 

CEO and Director General of the RAK FTZ 

The Ras Al Khaimah Free Trade Zone 

(RAK FTZ) has reported 190 per cent 

growth in the number of companies 

registered with the zone last year (2006), 

during which the zone has attracted capital 

investments worth of Dhs 3.3 billions. 

A total of 1,307 new companies have 

registered with RAK FTZ during the year 

2006, bringing the total number of 

registered companies with zone so far to 

2,653. Addressing a press conference the 

RAK FTZ held recently at the RAK 

Hilton to announce the zone's Annual 

Report, Oussama El Omari, CEO and 

Director General of the RAK FTZ, said 

that because of the guidance and support 

of H.H Sheikh Faisal bin Saqr Al Qasimi, 

Chairman of the RAK FTZ, the zone has 

managed to build a wide international 

reputation and ended up one of the most 

attractive free trade zones in the entire region. 

One of the factors of the international 

exposure of RAK FTZ is the number of 

the international marketing campaigns 

that the zone conducted, which has 

reached more that 23 in 2006. He added 

that the zone's strategic plan that is based 

on reaching out to potential investors 

and companies all around the world to 

promote the state of the art services and 

facilities has proved to be a real success. 

In the year of 2006, the highest ever 

reported numbers of business 

delegations from around the world have 

visited the RAK FTZ which has helped 

strengthening the bilateral relations 

between the zone and other international 

“ 

RAK FTZ aims at 

achieving 35 per cent growth 

in 2007 and enhancing the 

services and facilities to 

attract major international 

companies 

” 

entities. Most of the companies registered 

with the RAK FTZ during 2006 were 

from the Middle East comprising 31 per 

cent of the total number of the registered 

companies, Asia came second on list with 

30 per cent, Europe (27 per cent), North 

America (7 per cent) and companies from 

other parts of the world (5 per cent). 

The RAK FTZ management believes that 

the real investment is in the human 

resources. The zone, which has currently 

more than 200 multinational employees, also 

implements successful nationalization 

programs which improve the employees' 

work performance by enhancing their 

knowledge and skills. The zone has 

offered remarkable job opportunities for 

UAE nationals to encourage the local 

human resources, said El Omari. 

He stressed that many of the recruited 

local employees have been promoted to 

senior positions depending on their skills 

and work performance. In addition to 



that, the national employees have been on regular training 

courses in the UAE and outside it. 

Commenting on the RAK FTZ key accomplishments, El Omari 

said RAK FTZ was presented with two prestigious awards -'The 

Best Emerging Free Trade Zone' 'Young Achiever Award' 

presented to HH Sheikh Faisal bin Saqr Al Qasimi, Chairman of 

the RAK FTZ at the Middle East Logistics Awards 2006 (Mela) 

during its first annual ceremony. These two awards were 

presented for performance excellence and in recognition of the 

industry's best practices. The Advisory Committee of the Mela 

comprised of international advisors and consultants and headed 

by: 'Juan Torrents', President, World Federation for Free Zones 

(FEMOZA), Geneva, Switzerland. 

RAK FTZ has also been presented with the silver trophy in the 

UAE Government Category at the Sheikh Hamdan bin Rashed Al 

Maktoum Web Awards. The RAK FTZ website clearly proved to 

be well-designed, user-friendly and informative website that is 

believed to be a key marketing tool for the zone.El Omari said the 

zone's website www.rakftz.com is a one-stop shop for clients to 

apply online to register their businesses. 

The RAK FTZ has successfully attracted major real estate projects 

to the emirate to push the national economic progress ahead. El 

Omari said the zone in cooperation with a group of investors have 

launched Emirates Flag, a cluster of 7 complex presenting the 7 emirates 

worth Dhs 7 billion to be set up in Ras Al Khaimah. Ta'asees, has also 

launched the Airport Towers in Ras Al Khaimah worth Dhs 1 billion. 

El Omari said RAK FTZ has a strategic plan for the year 2007 

based on attracting commercial and industrial investments. The 

zone offers tremendous opportunities for investors in diverse 

sectors like IT, tourism, industry, health care and education. Ras 

Al Khaimah is currently implementing a comprehensive master 

plan for development which would enable the emirate to attain 

rapid and sustainable growth in all sectors. 

He stressed that the RAK FTZ's guiding principle in attracting 

foreign entrepreneurs has been to adopt simplicity of procedures 

and putting in place a pro- investment business environment. El 

Omari said the RAK FTZ aims at achieving 35 per cent growth in 

2007 and enhancing the services and facilities to attract major 

international companies. 

He said the zone has already constructed 400 new warehouses of 

different sizes which suit all types of businesses provided with 

state of the art infrastructure and facilities as part of the zone's 

expansion plan at the Business Park and the Industrial Park. On 

an area of 24,000 square meters, the zone has also constructed 

residential units at the two parks for employees. 

El Omari said construction in a new nine-storey Business Center 

is underway to cope with the increasing demand for getting registered 

with the zone. The centre that is based next to the premises of the 

RAK FTZ will be operational by the beginning of the coming year. 



The principal gateway for Jordanian container trade 

Aqaba Container Terminal 

With its strategic location on the map, 

Middle East maintains its position as 

one of the important players in the 

business of moving products for world 

trade. And with the growing preference 

for containerized shipment due to 

volume, cost, and security concerns, the 

maritime industry in the region 

continues to thrive, placing its countries 

on the prime list of players meeting the 

demands of the complex supply chain. 

And being the primary port linking Iraq 

to the rest of the world, Jordan’s Aqaba 

Container Termainal (ACT) proves to be 

one of main drivers of the continuous 

economic boom in the Middle East. 

The LINK uncovers more about ACT 

and its plans, with an exclusive 

interview with its main man, CEO 

Patricio Junior. 

Kindly give us an idea of the position 

of ACT in the Jordanian and 

regional economies. 

Aqaba Container Terminal (ACT) is the 

only container terminal in Jordan and 

the main entry point for the growing 

business of Jordanian importers and 

exporters. We are also strategically 

located at the crossroads of four 

countries and three continents, and an 

obvious gateway for the region – not 

least Iraq. 

At a local level, ACT is not just a very 

large employer, but also one of the 

corner stones in the development of the 

Aqaba Special Economic Zone. We work 

closely with Aqaba Development 

Corporation to make it a success. 

What are the advantages of ACT 

compared to its neighbors? 

ACT offers a great value proposition. 

First of all, our unique strategic location 

that is also supported by an excellent 

road network to the hinterland 

economic centres in Jordan and the 

surrounding countries, especially Iraq. 

We have also worked hard to ensure 

ACT today offers services that are up to 

international standards. We are proud 

that congestion is a thing of the past, 

and now offer berthing on arrival in 

fixed berthing windows. 

Patricio Junior 

CEO , Aqaba Container Terminal 

Another advantage comes from our 

strategic relationship with APM 

Terminals, one the world’s leading 

terminal operators. We have undergone 

massive positive changes as a direct 

result of this relationship. We apply 

international best practices, standards 

and technologies in our business, and we 

offer integrated transportation solutions 

coupled with state of the art automated 

systems and transparent operations. 

Kindly expound on your association 

with Aqaba Development Corporation 

(ADC). 

ADC wanted to partner with an 

international operator that could make a 

difference for the regional businesses. 

Together, we have worked hard to start 

with improved operational efficiencies 

and customer service to bring it up to 

international standards, and now we are 

looking at developing further capacity at 

the terminal. The plan aims at achieving 

an annual capacity of 2.4 million TEU 

through three phases, including 

expansion of the terminal, acquisition of 

new cranes and other equipment, and of 

course continued operational developments. 

Since APM Terminals took over the 

management in 2004, we have 

successfully implemented upgrades to 

the port and focused on establishing 

world-class performance. Vessels now 

berth on arrival in guaranteed berthing 

windows. Truckers benefit from 

streamlined landside operations and 

strict safety measures. 

The last element has been a strong focus 

on our people. We have developed tailormade 

development programmes in 

Jordan, and we do, of course, participate 

in the programmes operated by APM 

Terminals globally. 

The results have been fantastic! Shipping 

lines have long since cancelled the 

congestion surcharges that once marred 

Jordanian trade, they are again calling 

Jordan with direct services. And we have 

also received other recognitions – the 

renowned Lloyd’s List has, for the the 

past two years, nominated ACT as one of 

the top three container terminals in the 

Middle East and Indian Subcontinent. 

Traditionally, ACT has served as the 

principal gateway for transit cargoes to 

and from Iraq and other regional 

markets. Has ACT been able to 

capitalise on the Iraq reconstruction 

boom? 

Yes. Aqaba remains a primary gateway 

for cargo moving to Iraq. Currently, the 

situation in Iraq means that volumes 

have slowed down a bit, but we work 

closely with shippers and shipping lines 

to ensure we have the best possible 

service offerings at all times. 

What steps have you taken to increase 

the flow from Far East? 

At ACT, we work closely with the 

shipping lines to facilitate their growth – 

Far Eastern volumes increase, and we 

support this in many ways. Not least 

through offering guaranteed berthing 

windows that ensure the main Asia- 

Europe liners can run optimally and on 

schedule so they can service the Levant 

directly and take the opportunities of 

"double-dipping." 

What challenges do you foresee for ACT? 

Our main challenge is to keep the 

momentum, and keep moving forward 

undeterred. We also want to ensure the 

terminal grows so we can always support 

the regional growth and broaden our 

market appeal to attract further business 

to Aqaba. 



ACT, after privatization 

Before privatization, Aqaba terminal port encountered serious 

problems related to handling the increase in imports and exports, as 

well as loading and discharging of containers in Aqaba port. In 

March 2004, the global company APM Terminals arrived on the 

scene to manage ACT. The international player set on to introduce its 

new strategies, management and operational techniques in addition 

to applying intensive systems for employees that enabled ACT to 

meet the international transit demands of Aqaba’s strategic position. 

ACT then witnessed different achievements during the last two years 

and half which enhanced its image. By March 2005 the company was 

able to put an end to the traffic and cancel all surcharges which led 

to saving the Jordanian economy around USD $120 million. 

The company became fully computerized when it added different 

technologies to its systems such as introducing the advanced 

computerized systems of Navis and IFS terminal and financial 

systems. Targeting enhanced performance, ACT implemented berth 

windows systems that guarantee the ability of all vessels to turn 

around in no more than 12 hours, raising productivity rates from 8 

to 28 hours per crane hour, in addition to launching the Web-based 

Container Tracking process and implementing the International 

Ship and Port Security (ISPS) code, which is related to securing 

safety measures. 

Furthermore, the dwell time to import a container has reduced from 

21 to 2-3 days, while the anchorage waiting time was reduced from 

129 hours to 0, total vessel port stay from 5 days in 2004 to less than 

1 day in 2005. New lines were inaugurated while the growth of 

exports and imports movements in the container terminal has 

reached 3.5 percent compared to last year. As a result, throughput of 

358,000 TEU in 2004 was boosted by 10 percent to 393,000 

TEU last year. 

ACT replaced old straddle carriers with modern new Rubber Tire 

Gantry (RTG) operation. It has as well constructed new ‘in and out’ 

gates with proper security procedures and new marine routes 

between different countries which increased the volume of usage. 

The company followed an international periodical maintenance 

system for its cranes and equipment. Moreover, it provided a hot 

line that enabled clients to inquire about their formalities, submit 

direct complaints and participate in specialized local and 

international conferences. ACT developed its own website that keeps 

the visitor up to date with latest news on the company as well as 

allowing customers to track the movement of containers. 

ACT also applied an approach that focused on developing its 

employees and providing them with the optimal working 

environment. It established its internal training center to offer 

computer courses, English language in addition to courses on safety, 

civil defense and area administration as well as sending them to 

training courses that were held in other countries. It developed and 

implemented a bonus scheme, increased salaries, transportation 

arrangements, a clinic, and other initiatives. Different activities 

were done for the employees, such as a family day, annual Iftar in 

Ramadan, ACT football and chess tournaments, safety workshops 

and computer training for the them and their families. 



The International Gateway of IDR 

Port of Tanjung 

Pelepas 

Port of Tanjung Pelepas (PTP), Asia’s 

fastest-growing port with facilities and 

services, currently ranked amongst the 

best internationally, is a premier world 

class port strategically located at the 

southern tip of peninsular Malaysia and 

at the confluence of the busy east 

west trade lanes going into the straights 

of Malacca. 

Having proved itself as a successful 

transshipment hub and a regional 

distribution, trade and logistics centre 

over the past 6 years, the government of 

Malaysia has entrusted PTP with the role 

of "international gateway for the southern 

region" under Malaysia’s latest and most 

ambitious plans to develop Malaysia’s 

southern most state of Johor into a new 

economic growth area. 

The new economic growth area 

commonly known as Iskandar 

Development Region (IDR) covers an area 

of approximately 2200 square kilometers 

and provides an attractive investment 

environment for a wide range of 

businesses. Analysts predict that the IDR 

will transform South Johor into a new 

international address for businesses and 

investments at par with Hong Kong 

& Schenzen. 

Among the projects identified under the 

IDR master plan are for the development 

of the Southern Industrial Logistics 

Cluster (SILC) which will house 

industrial and commercial parks. 

Activities planned at these facilities 

include "postponed manufacturing," 

where parts and components are brought 

in from various sites to be assembled at 

these facilities before being re-exported. 

Being located within the IDR, the strategic 

location of PTP and it’s integrated Free 

Zone, will bring value to the IDR by 

providing the much needed linkage and 

hence giving the region a high level of 

international accessibility. 

The unique location of PTP has made 

Pelepas Free Zone (PFZ), which is located 

within the same boundaries an 

investment hot spot for investors seeking 

to set up base for their operations to serve 

not only the South East Asia region but 

also the world’s major economies. As the 

southern region’s regional logistics and 

distribution hub, PFZ has managed to 

attract more than RM2 Billion in foreign 

direct investments. 

The growing importance of PFZ as an 

attractive investment location can be 

further demonstrated by PFZ’s latest 

signings in 2006, which saw notable big 

brand names like Intelco (machinery 

spare parts distribution), Century 

Logistics (development of 200,000 sqf 

warehouse space), Cameron International 

(oil and gas processing plant) and Geodis 

International (logistics company) making 

the move. 

Other equally impressive names already 

operating from within PFZ and enjoying 

its many benefits and advantages offered 

include BMW Parts Distribution Centre, 

Schenker Logistics, Maersk Logistics, 

Naigai Nitto, MiEL, Tiong Nam, JB Cocoa, 

Flextronics, Ciba Vision, JST, ICBP, 

Nippon Express and many more. 

In a recent interview, PTP’s Chief 

Executive Officer Harun Johari said that 

PFZ was very significant to the 

sustainable growth of the port. "PFZ 

contributed positively to our overall 2006 

business results by recording an impressive 

57 per cent growth in container through," 

he added. 

"Manufacturing facilities located within 

PFZ has started to create spin offs in 

attracting more local cargo volume 

whilst the commercial activities of the 

PFZ further enhances PFZ’s 

attractiveness through the value added 

logistics services it has to offer," he said. 

Harun also said that through the interest 

generated by IDR and the positive 

commitments indicated by foreign 

manufacturing firms seeking to form 



joint ventures with local Malaysian partners, PFZ would equip 

itself to sign up more new tenants as PFZ was one of the 

"preferred" locations within the IDR. 

"With the state of Johore being an attractive investment 

destination under the IDR, we foresee more interest being 

shown towards PFZ from global companies who want to 

operate within a free zone environment," he added. 

Harun said that despite the competition faced by IDR from 

countries such as China, India and Vietnam, investors were still 

looking at IDR due to the overall competitiveness in respect to 

operational excellence and cost in doing business. 

PFZ has been designed in a unique way where both the 

industrial and commercial parks are located within the same 

compound as the port terminal. With no customs process 

interventions, the movement and transfer of cargo from the 

factories and warehouses within the free zone to the terminal is 

much easier and faster ensuring a quicker turnaround time for 

container loading/discharge. 

"This benefits the tenants directly as a faster turn around time 

for movement of cargo via the close proximity between the free 

zone and the terminal translates into cost savings for the 

logistic providers and manufactures in the form of cheaper 

haulage cost," added Harun. 

The setting up of a one-stop service centre within PFZ offering 

solutions to human resource and employee management 

related matters such as employment of workers, 

accommodation as well as transportation for workers in and 

out of the free zone is part of the value added services PFZ has 

on offer. 

Other incentives on offer and benefits of operating within PFZ 

is the entitlement to apply for corporate tax exemption for up 

to 10 years from the Government, tax exemption on all goods 

and products brought into the free zone as well as being 

allowed to have up to 100 per cent foreign equity in the 

company for manufacturing activities. 

“ 

Despite the competition faced 

by IDR from countries such as 

China, India and Vietnam, 

investors were still looking at IDR 

due to the overall competitiveness 

in respect to operational excellence 

and cost in doing business. 

” 

Ample land space ensures investors of PFZ will have 

scalability for the future. The industrial park is big enough for 

strategic suppliers to co-locate on-site with manufacturers to 

reduce procurement costs and transportation time, providing 

customers a faster "time-to-market." 

The flexibility given to potential tenants of PFZ includes the 

option provided to either build their own purpose built 

warehouse or manufacturing facility; or lease an existing one. 

Harun concluded that "business owners who are looking to 

locate their operations to this region will realize that PFZ offers 

the best solution in terms of location, connectivity as well as 

space for growth and expansion." 



Link between ports and free zones 

strengthen economy 

- By Lachelle Arevalo 

It is approximately over two decades ago 

when the UAE government started to 

build efforts to diversify its oil-reliant 

economy, and make the country more 

conducive to foreign investments through 

the introduction of free zones. And at the 

onset of the first-ever free zone in the 

UAE, Jebel Ali Free Zone Authority, in the 

mid-80s, analysts have made a case on the 

economic phenomenon that followed suit 

– expressing doubts if the ‘free zone 

concept’ would actually work in a country 

which main assets revolved around oil 

and its by-products. 

After only a short span of some five years 

following the establishment of JAFZA, 

when the free zone announced facilitiesupgrade 

and expansion plans to 

accommodate client demand, not only did 

the analysts stop the ‘arguments,’ but also, 

the whole world started to take notice of 

the fact that the UAE is also a big potential 

business venue for non-oil activity. 

Better combined 

If truth be told, JAFZA triggered the 

growth in and around Jebel Ali and 

Dubai, and the rest of the UAE. The 

success of JAFZA encouraged the Dubai 

government to establish the Dubai 

Airport Free Zone in 1996. Around the 

same time, Sharjah and other Northern 

Emirates have all set up free zones around 

their respective seaports. 

And although, now, industry-specific free 

zones, like the Dubai Technology and 

Media Free Zone, contribute largely to the 

amount of free zone-generated non-oil 

business in the region, free zones, in 

general, are deemed to maximise its full 

potential as a revenue-producer when 

established within the vicinity of ports and 

airports – which are tagged as business 

gateways of any progressing economy. 

According to a random survey conducted 

by The LINK, free zone clients, like 

airlines, ship operators, logistics 

providers, and airport managers, agree 

that free zones are more ‘marketable’ 

when closest to a seaport or an airport – or 

best yet, both. 

“Free zones, ports, and airports succeed 

best when they are together. In our 

business, to be able to transport a 

container in a sea port environment to a 

free zone environment in a matter of 

minutes instead of a number of hours is 

obviously a significant factor in costeffective 

logistics,” said Matthew Diggle, 

Business Manager, Freight Services, Gulf 

Agency Company (GAC), Dubai. 

Another free zone user, Saudi Arabian 

Lines, couldn’t agree more: “Free zones 

give airlines a simplified and costeffective 

way to move cargo from one 

place to another. And the beauty in the 

Middle East, in UAE in particular, is that 

there are several free zones. Companies 

can definitely choose which one suits 

their business best,” related Saud Arab, 

GM, Cargo and Airmail Sales and 

Services Systems. 

Apart from cost-effective qualities, a free 

zone, when adjacent to a port or airport, 

outlays cargo increase and timely 

deliveries. “When companies open their 



accessibility to two international airports 

and four seaports. Fujairah Free Zone, 

located near to the port of Fujairah, have 

easy access to all Arabian Gulf ports, the 

Red Sea, Iran, India and main shipping 

lines arrive from northern Europe, the 

Mediterranean, the Far East and North 

Saud Arab 

General Manager, Cargo and Airmail 

Sales and Services Systems 

The beauty in the 

Middle East, in UAE in 

particular, is that there 

are several free zones. 

Companies can definitely 

choose which one suits 

their business best. 

factories in the free zone, this would 

mean more shipment. So when a free 

zone is bordering an airport or a sea port, 

it helps companies within the area meet 

delivery schedules; and because of the 

proximity, at reduced costs,” added Dr. 

Khaled Almazroui, General Manager, 

Fujairah Airport. 

And due to the expertise of the free zone 

operators/hosts in the UAE, and the 

unified approach of the Emirates of 

providing world-class service that meet 

client expectations, most of the ‘betterfaring’ 

free zones throughout the region 

have the accessibility and proximity to 

sea ports and airports. DAFZA is located 

within the boundary of Dubai 

International Airport. Sharjah’s free 

zones, Hamriyah and Sharjah Airport 

International Free Zone are supported by 

seaport and airport, respectively. Ajman 

Free Zone serves the eastern and the 

western markets, as well as ensures easy 

Matthew Diggle 

Business Manager, Freight Services, 

Gulf Agency Company 

If there wasn’t a level of 

congestion (in the ports 

and free zones); if there 

wasn’t a level of active 

business growth and 

pressure, then it would not 

be an effective operation. 

America. The geographic location and 

proximity of Saqr Port, meanwhile, 

positions Ras Al Khaimah Free Trade 

Zone as the port for all northern markets. 

Plus, Ras Al Khaimah is the closest 

Emirate to the main shipping lane 

traversing the Strait of Hormuz. And 

JAFZA, of course, has Jebel Ali Port, and 

the anticipated 6-runway Dubai World 

Central International Airport. 

Challenges 

There would always be several 

challenges that threaten the stability of a 

progressing industry. Hence, experts cite 

Dr. Khaled Almazroui 

General Manager, Fujairah Airport 

When a free zone is 

bordering an airport or 

a sea port, it helps 

companies within the 

area meet delivery 

schedules; and because 

of the proximity, at 

reduced costs. 

a number of foreseen obstacles for the 

free zone and ports industry of the 

region, such as high oil prices, 

competition, and congestion, among 

others. However, when asked about the 

aforementioned ‘threats,’ the The LINK 

survey respondents differed. 

“No. I don’t think there is congestion – I 

think (ports and free zones) just reached 

an optimum level. I think if there wasn’t 

a level of congestion; if there wasn’t a 

level of active business growth and 

pressure, then it would not be an 

effective operation. You have to work at 

a certain level where you saturate your 

business whether in the operation of free 

zones, ports or a warehouse or a fleet of 

trucks or an airline – you always want to 

have an optimum level – a balance 

between under-utilisation and overcommitment; 

having free space, or 

reaching service failure levels: either of 

those is bad. But, ultimately, you always 



control of capital flows. The Chinese 

financial system is not yet sufficiently 

sophisticated to control surges in such 

flow through the normal application of 

interest rates and the operation of 

markets in securities, bonds, and shares. 

The UAE could, through unrestricted 

construction projects, also overheat,” he 

explained. 

Joel Rodricks 

Assistant GM – Line Management, 

Maersk Kanoo 

The port infrastructure 

in the UAE has kept pace 

with the rapid growth 

we have witnessed in 

recent years. 

have to be pushing the limit; pushing 

the boundaries to be competitive. So I 

think our ports and free zones in the 

UAE are a healthy environment to 

conduct business," observed GAC’s 

Diggle. 

For Fujairah Airport’s GM Almazroui, he 

is “sure all free zones and ports have 

master plans that would help configure 

expansion plans as needed.” 

However, according to Peter Ryan, VP, 

FEMOZA (World Federation of Free 

Zones), more than anything else, there is 

one challenge for the region that would 

affect all industries, especially free 

zones: overheating economy. 

“One challenge now emerging is that of 

the overheating economy, shown very 

recently in China where the high growth 

rate of some nine per cent has led to over 

investment in infrastructure, and lack of 

This theory, actually, was echoed by 

Minister of Economy, Sheikha Lubna Al 

Qasimi, in a recent report by McKinsey 

Quarterly: “I don’t think the price of oil 

will threaten the development of the 

UAE economy – the inflow of FDI shows 

it is working – but a more concerning 

issue is inflation, triggered by the high 

oil prices and booming economy. It’s a 

concern, and we need to try and find a 

balanced solution to the issue and avoid 

overheating.” 

Regional capability 

There are approximately 23 free zones 

and special economic zones throughout 

the UAE, with 8 of those located in 

Dubai. And with more ambitious 

projects in the pipeline, particularly from 

bullish Dubai and now-aggressive Abu 

Dhabi, the free zone and ports industry 

is confronted with the challenge to 

sustain its exponential growth, which is 

one of the key drivers of the flourishing 

economy of the region. 

However, despite challenges and doubts 

of a boom-or-bubble economic situation 

that always plagues an emerging giant, 

experts believe that, at the end of the 

day, it boils down to regional capability, 

coupled with availability of capital. 

“ 

Free zones, in 

general, are deemed to 

maximise its full 

potential as a revenueproducer 

when 

established within the 

vicinity of ports and 

airports. 

” 

Peter Ryan 

Vice President, FEMOZA 

In the UAE, the 

availability of copious 

financial resources has 

enabled the Emirates to 

develop a thriving 

export trade 

independently of the Oil 

and Gas sector. 

“In order to encourage and promote 

trading you also need to provide 

excellent infrastructure and transport 

links to the global markets. The port 

infrastructure in the UAE has kept pace 

with the rapid growth we have 

witnessed in recent years,” commented 

Joel Rodricks, Assistant GM – Line 

Management, Maersk Kanoo (LLC) 

UAE. 

“In the UAE, the zero tax and tariff 

position and the availability of copious 

financial resources have enabled the 

Emirates to develop a thriving export 

trade independently of the Oil and Gas 

sector. The availability of capital has 

allowed the investment in both seaports 

and airports, such as state-of-the-art 

telecommunications, or development of 

Internet-based trade, and the like, which 

are essential infrastructure for a free 

zone-based export economy,” concluded 

Ryan of Femoza. 


Market Watch 47 

TNT launches ‘Mobile Worker’ in Kuwait and Bahrain 

TNT Express has launched its ‘Mobile Worker’ communication 

units in Kuwait and Bahrain which enable drivers to send 

and receive delivery information in real-time through one handheld 

scanner. 

Introduced as part of a global strategy for its worldwide delivery 

network, the ‘Mobile Worker’ units enable high speed wireless 

communication of large quantities of data between depots and drivers. 

"We will introduce ‘Mobile Worker’ units in our vehicles in 

Kuwait which will significantly improve the speed and efficiency 

of our delivery operations," said Richard Clayton, Country 

Manager – Kuwait, TNT Express. 

"Mobile Worker" consolidates seven different communication 

systems into one unified and multi-functional solution and 

enables customers across the world to track their shipments in 

less than five minutes of pick up or delivery. This is particularly 

useful for those operating time critical businesses." 

The ‘Mobile Worker’ unit was launched in the UAE last year and 

the company is planning to introduce the hand-held scanners in 

Saudi Arabia by year-end. 

"By implementing a ‘single system’ solution, TNT can deploy this 

technology across its network without the need to install and 

maintain a server infrastructure in each country. This will help 

create savings of up to 70 per cent," added Clayton. 

NTDE, ILB to set up Dubai logistics hub 

National Trading and Developing Establishment (NTDE) Group 

and Integrated Logistics Bhd (ILB) announced a landmark joint 

venture, under which the two companies will build a central hub 

in Dubai to provide extensive logistics services to the Middle 

East and Africa. 

The Dubai hub, built in response to the rapidly growing logistics 

requirements of the region, will provide a plethora of services to 

Middle Eastern and Asian countries, including vendor managed 

inventories, Risk Management through outsourcing, on-site 

logistics management, cross border transportation and regional 

distribution centers. 

The joint venture benefits each company with specialised 

logistics strengths; NTDE has extensive experience in 

warehousing, storage, fleet management, third party logistics 

and IT while ILB is a powerhouse in logistics services, 

warehousing (bonded and non-bonded), international freight 

forwarding and customs brokerage and transportation and 

container haulage. The venture is geared in particular to handle 

logistics operations in relation to electrical and electronics items. 

The Joint Venture also covers Malaysia, China and Dubai, 

United Arab Emirates. 


48 Market Watch 

Emirates SkyCargo lands top honour from Air 

Transport World 

Emirates, one of the world's 

fastest growing international 

airlines, has been awarded 'Cargo 

Airline of the Year' by the editors 

of Air Transport World in the 2007 

Airline Industry Achievement 

Awards programme. 

Air Transport World, a leading 

monthly magazine serving the 

global airline industry, presented 

their awards at a gala ceremony 

in Washington, D.C. recognizing 

excellence in the airline and 

commercial aerospace industries. 

"Emirates is delighted to win the 

esteemed ATW Cargo Airline of the Year 

award and be recognized by experts in 

the airline and cargo industry," said Ram 

Menen, Emirates Divisional Senior Vice 

President, Cargo. "At Emirates 

SkyCargo, we have aimed to achieve the 

highest standards of product quality and 

customer care. We are honoured that Air 

Transport World has identified us as one 

of the top airlines that has characterized 

itself through outstanding performance 

and service." 

Last year, for the first time in its history, 

Emirates SkyCargo carried more than 

one million metric tonnes of cargo and 

generated more than $1 billion in 

revenue. "Beyond the strong growth rate, 

SkyCargo is distinguished by its ongoing 

innovation in air cargo transport, 

developing systems and strategies that 

reverberate beyond Dubai," Air 

Transport World editors said. 

Jadaf Dubai begins plot allotment process at 

DMC facility 

warehouses and other commercial 

outlets. 

The region’s most experienced 

ship repair yard expects 85 percent 

of its total area to be taken by 

companies that are already 

operating out of its existing facility 

near Garhood Bridge on the Dubai 

Creek, while the remaining 15 

percent will be allocated to new-comers. 

Jadaf Dubai, which is relocating its ship 

repair facilities to an ultra-modern 

complex on the man-made Dubai 

Maritime City island, has announced that 

it has begun processing applications and 

executing lease contracts for plots of land, 

ship building and maintenance workshops, 

The Jadaf Dubai complex at Dubai 

Maritime City would include 82 

workshops, with sizes of 884sq m and 

442 sq.m and 82 warehouses of 510 

square meters each, more than 30 

commercial outlets specializing in 

marine accessories, spare parts, engines 

and oils, in addition to office units, 

showrooms and restaurants. 


Market Watch 49 

FAMCO voted ‘Best in the Middle East’ by Linde 

FAMCO has received two awards from 

Linde for the company’s performance in 

2006: ‘Best Distributor in the Middle East’ 

and ‘Highest Sales Organisation’, further 

strengthening the 14-year relationship 

between the two companies. During this 

time some highly prestigious projects 

have been signed by FAMCO for Linde 

products including Du, GAC, Sony Gulf, 

Transworld, Emirates Engineering 

(DNATA), Dubai Duty Free, Ducab, 

Dubal, Gulf Extrusion and Aramex. 

The awards were presented in Germany 

in recognition of FAMCO’s continued 

growth in market share for Linde material 

handling equipment, coupled with 

excellent customer support through 

service and parts operations. In a further 

step cementing the relationship, 

FAMCO’S Storage & Handling Solutions 

Acting Divisional Manager, Ayman 

Ahmed, was nominated to represent the 

Middle East region as part of Linde’s 

international marketing committee. 

Aramex Logistics Centre of Excellence launched 

Dr. Labib Al Khadra, Dean of the German 

Jordan University, and Iyad Kamal, 

ARAMEX's Vice President for Logistics & 

Ground Services, jointly signed a 

Memorandum of Understanding in 

Amman to launch the new education and 

training Centre of Excellence. 

The Centre will play a key role in shaping 

the University's logistics and 

transportation-related programmes and 

will act as conduit for technical, academic 

and industrial information exchange 

about the sector. Overall, it will encourage 

the development of the industry in the 

entire region and contribute to increasing 

expertise and raising standards. 

Aramex has announced the launch of the 

'ARAMEX Center of Excellence for 

Logistics' within the German Jordan 

University (GJU). 

A crucial input from the Centre will see it 

act as a filter to ensure the content of the 

University's courses is in line with local 

and regional business requirements. The 

new training courses that will be offered 

as a result of this initiative will ensure that 

logistics professionals in the region will 

be in tune with the latest techniques and 

processes and be able to deliver services 

to the highest international standards. 


50 Market Watch 

Gulftainer warehousing depot in business 

has been snapped up by customers eager 

to take advantage of the easy access 

location next to the well established 

Sharjah ICD (SICD) linked with Khorfakkan 

and Sharjah Container Terminals. 

The site is also ideally situated away from 

the major infrastructure bottle necks in 

the UAE and offers close access to the 

developing industrial sites and all the 

major centres within the UAE. 

Peter Richards, Gulftainer director and 

general manager commented: 'The 

opening of the SICD nearly three years 

ago prompted large numbers of 

consignees and shippers to re-assess their 

transportation needs and it soon became 

clear in conversations with them that 

many were also looking for more cost 

effective and accessible locations for their 

warehousing activities." 

Gulftainer has announced that its new 

warehousing depot, conveniently situated 

on the outskirts of Sharjah and on the 

Dubai border, near the Emirates and 

'Outer Ring' roads - is now open for business. 

Virtually all of the first phase of the 

11x8000 and 6000 square feet warehouses, 

"We decided to provide these facilities 

where our ICD is located and I am 

delighted that the response has been very 

positive for the initial phase. We are now 

assessing the options for Phase 2." 

GAC launches its online university 

GAC, a Dubai-based shipping, logistics 

and marine services company, has 

launched its online university, called the 

GAC Corporate Academy. Currently 

available only to its employees, the 

company says it is already in discussion 

on opening its doors to partners, 

customers and other stakeholders 

wishing to benefit from state-of-the-art 

courses in the areas of shipping, logistics 

and marine. 

Speaking at launch ceremony GAC 

Group Vice President Jan Farnelid said: 

"The GAC Corporate Academy will 

become a cornerstone of GAC's human 

resource development strategy. What we 

have created in GCA is a platform where 

our people can develop the skills that are 

critical to their personal and professional 

growth. It will even help some discover 

their hidden talents." 

All GCA courses are facilitated by 

certified industry and professional 

specialists to ensure participants gain 

exposure to contemporary and emerging 

trends within and outside the 

GAC World. 


52 KSA Development 

Promoting knowledge through ‘Econmic City’ 

Intelligent City 

Saudi Arabia has launched a number of 

ambitious ‘economic city’ projects; and 

Knowledge Economic City (KEC), on the 

outskirts of Medina, is the first of its kind to 

be initiated by the Saudi Arabian General 

Investment Authority (SAGIA) in an 

aggressive bid to repatriate capital and 

attract value-added foreign investments. 

The move is part of efforts hoped to 

develop the Kingdom’s regions in a hi-tech 

manner while easing mounting pressure 

off the country’s three major urban 

infrastructures. The project is expected to 

attract investments worth more than SR25 

billion ($6.7 billion) and create nearly 

25,000 new jobs. 

The city will comprise various zones 

designed to compliment each other; a 

technology and KBI zone; an advanced IT 

studies institute; an interactive museum on 

the life of Prophet Mohammad (PBUH); a 

center for Islamic civilization studies; a 

campus for medical research and life 

sciences; an integrated medical services 

zone; a retail zone; a business district; 

residential zones including high rises, 

houses, and fully-serviced apartments; 

shopping malls; and a mosque with a 

10,000 worshipper capacity. 

The high-tech park, located over an area of 

360,000 square meters, will contain a series 

of highly-equipped "smart" buildings 

provided with state-of-the-art IT and 

telecommunications infrastructure. 

According to SAGIA, the IT park’s areas of 

focus will include electronic government, 

distance learning, Arabic language 

improvement and technology, religious 

tourism technology and call centers. It will 

also support young Saudi IT entrepreneurs 

and small firms by providing a competitive 

environment in which to grow their 

business. The park will utilize the skilled 

female talent pool in the region and 

provide them with working opportunities. 

The Center of Islamic Civilisation Studies 

and Research, spread over an area of 

205,000 square meters, will benefit from the 

availability of a wide variety of resources 

and scholars in Madinah. It will specialize 

in history and cultural educational 

programs using modern distance learning 

technologies, video conferencing and 

webcasting. It will also provide audiovideo 

cultural programs on Islamic 

civilization in key languages spoken in the 

Islamic world as well as cross-cultural 

discussion panels looking at cooperation 

and tolerance. 

The center is designed to transform 

Madinah’s religious and heritage strengths 

into modern media products that can be 

exchanged and circulated among Muslims 

worldwide. It will also be home to thinktanks 

tasked with working out clear 

strategies for building a prosperous future 

in the Islamic world. 

The Center for Medical Sciences and 

Biotechnology, covering 85,000 square 

meters, will provide medical services to 

Madinah residents as well as to pilgrims 

coming from different parts of the world. 

The likely focus of biotechnology research 

will include the treatment of common 

illnesses in the Kingdom, environmental 


KSA Development 53 

research into waste management and water 

treatment and a genetic engineering 

program to improve palm tree productivity 

and quality in Madinah. 

The Theme Park in the KEC is being 

designed to give visitors of all ages, 

interests and cultural backgrounds an 

unforgettable virtual tour into the history of 

the Prophet’s heritage and Islamic 

civilization. It will include the lives of the 

prophets, the legacy of Prophet 

Muhammad, the dynasties of Islamic 

civilizations and the contribution of 

Muslim civilization to world knowledge. 

According to SAGIA, all activities in the 

theme park are using the latest multimedia, 

laser and digital technologies. 

The Residential Zone will also have major 

retail area in the style of Madinah’s historic 

souks. The architecture of the surrounding 

dwellings, among which are to be two villa 

complexes as well as furnished apartments, 

will be equally traditional. Much of the area 

will be pedestrianized with pleasant 

PROJECT FACTSHEET: 

outdoor spaces. There will also be a hotel 

complex with a convention center and a 

multipurpose hall. 

Transportation within KEC will be 

facilitated via a ring road above which rises 

a monorail connecting the city to 

neighboring Grand Mosque of Madinah 

within minutes. This monorail will be 

tethered to the planned train station thus 

tapping into the railway access to Makkah, 

Yanbou, the King Abdullah Economic City 

as well as the port city of Jeddah. 

SAGIA played a pivotal role in the 

conceptualization of the project. 'The King's 

vision to develop an economic city based 

on KBI is a forward looking step and the 

development will boost the region's 

chances to attract investments hoped to 

overhaul services in Madinah,' commented 

Amr Dabbagh, governor of SAGIA. 

"This vital project falls well within plans to 

upgrade the Kingdom's regions in a 

sustainable fashion taking into 

• Twenty five billion Riyals (USD 7 Bill) of direct investment for 

developing the project 

• Twenty thousand new job opportunities 

• An expected population of two hundred thousand persons 

• The project can accommodate up to thirty thousands visitors 

• Project land area of 4.8 mil. Sq. meters 

• Total build area of 9 mil. Sq. meters 

consideration each region's competitive 

advantages. Given Madinah's historic 

stance as the launch pad of Islamic culture 

by Prophet Mohammad (PBUH) more than 

14 centuries ago, the KEC project is a 

renaissance of sorts as Madinah will be 

used to launch the knowledge-based 

industries," added Dabbagh. 

Governor Amr Dabbagh pointed out 

that the three economic cities launched to 

date by SAGIA are in line with its 

strategy to promote investments into the 

country's sectors that propose the best 

competitive advantages, namely, energy, 

transportation, and KBI. The first 

economic city launched December 2005 in 

Rabegh (the King Abdullah Economic 

City) focused on promoting energy- and 

transportation-related industries, while the 

second economic city launched last week 

in Hayel (the Prince AbdulAziz bin 

Mousaed Economic City) is designed 

around transportation and related logistical 

services. This latest city in Madinah captures 

the essence of SAGIA's third focus, 

knowledge-based industries (KBI), 

concluded Dabbagh. 

The Knowledge Economic City project is a 

culmination of efforts by a group of leading 

Saudi companies to develop an economic 

city to the east of Madinah that is planned 

to become an international KBI icon. 

The total built up area will reach 8.8 million 

m2 including 4,000 stores and 

30,000 residential units that will house 

200,000 inhabitants. 


54 UAE Infrastructure 

Dubai gets hi-tech air cargo facility 

The facility is the only one of its kind in the entire region and will provide 

exclusive services to bullion, jewellery, diamonds and currency dealers. 

Emirates Group Security has 

inaugurated their new headquarters 

and flagship facility for valuables 

processing in the Dubai Airport Free Zone. 

The AED 50 million building was 

officially inaugurated by HH Sheikh 

Ahmed bin Saeed Al-Maktoum, 

Chairman and Chief Executive, 

Emirates Airline and Group. Business 

partners and VIP guests from the 

banking, security and valuables trading 

community also attended the ceremony 

and gala celebrations. 

The new purpose-built headquarters 

for Emirates Group Security and its 

Transguard business divisions, is a onestop 

centre designed to efficiently and 

securely handle valuables and 

vulnerable cargo for commercial and 

international shipping. It is dedicated to 

high-value shipments only, 

consolidating all the related handling 

processes, services and expertise under 

one roof. 

H.H. Sheikh Ahmed said: "This new 

facility will boost Transguard's and 

Emirates Group Security's capabilities, 

and enhance their leadership position 

in the security solutions industry. The 

advanced infrastructure will also play a 

key role in fulfilling Dubai's vision to 

become a premier trading and shipping 

centre for valuables and gold. We look 

forward to providing shippers and 

“ 

The advanced 

infrastructure will also 

play a key role in 

fulfilling Dubai's vision 

to become a premier 

trading and shipping 

centre for valuables 

and gold. 

” 

traders of valuable cargo with the best 

quality services, and a convenient, 

secure environment in which to trade 

and process their cargo." 

The new building is fully-equipped to 

handle valuable goods and vulnerable 

goods such as computer chips, mobile 

phones, and pharmaceuticals - allowing 

such cargo to be speedily processed. 

Cash can be securely packed and 

efficiently shipped around the world, 

making it a boon for banking and 

security exchanges. 

The facility also has airside accessibility, 

offering the fastest route from 

stronghold to aircraft and vice versa. 

Transguard is the only security 

company in the UAE authorised to offer 

this service. In addition, office space is 

available for lease to businesses such as 

exchange houses who could benefit 

from the facility's secure premises to 

reduce cost of insurance and 

movements of valuables. 


UAE Infrastructure 55 

a c c e s s 

international 

information 

systems via the 

internet. 

Dr. Abdulla Al Hashimi, Divisional 

Senior Vice President, Emirates 

Group Security and Transguard, 

said: "Valuables, like perishables, 

are a 'must go' item. Perishables can 

spoil if left unprocessed for an extra 

day, and similarly a shipment of 

cash or gold can experience volatile 

changes in value over a day. So 

seamless and secure handling is 

critical." 

"In designing our new facility, we 

researched and travelled widely to 

look at the best practices in 

different areas. We are proud to 

have one of only a few sites in the 

world that is purpose-built to 

offer all the valuable handling 

facilities under one roof. Many 

representatives from major airlines 

and banks have visited the site to 

date, and all have walked away 

impressed. No security issues have 

been raised by any of the assessors." 

Other key features and facilities 

The Control Centre: Employing the 

latest technologies, the control 

centre is the centre of 

communications from which the 

security team monitors all facilities 

of the Emirates Group, track 

Transguard vehicles by Global 

Positioning Satellite (GPS), and 

ATM cash 

processing 

facility: The 

facility will 

house the 

largest cash 

processing 

machine in the 

region, with 

high-tech 

connections 

that monitor 

the cash levels 

in over 620 

ATM machines across the UAE, 

allowing the team to coordinate the 

reconciliation and replenishment of 

machines. The unit supported with 

a fleet of 110 armoured vehicles. 

Direct access to and from air gate 

bays; cash processing with packing 

facilities, secure vaults for transit or 

long-term storage. 

Integrated handling: Ground 

Handling Agents and the 

regulatory agencies such as 

customs and police, will be 

integrated within the facility. 

Round the clock security: The 

building is completely monitored 

by state-of-the art security systems, 

CCTV surveillance, and will be 

guarded on a 24-hour basis. 

The building is already certified by 

TAPA (The Technical Asset 

Protection Association), making it 

the first TAPA-certified valuable 

handling warehouse in the Middle 

East. Emirates Group Security and 

Transguard's administrative 

functions have already relocated to 

the new building, and the facility is 

expected to commence full 

operations as a valuables and 

vulnerable cargo handling hub in 

April. 


56 Transportation 

DHL Exel Supply Chain fills logistical needs 

in O&G market 

or Cross-Docks in Dammam, Riyadh, 

Jiddah and Yanbu, of a fleet of vehicles and 

personnel, as well as Material Service 

Centers (MSC). To implement these 

activities in MDC and MSC locations, DHL 

Exel SC will manage a staff of over 400 

people. DHL Exel SC will also set up a 

system enabling the customers of Saudi 

Aramco to track the transport of their 

orders on the Internet. 

“We’re collecting from about 7,000 

suppliers on behalf of Saudi Aramco. We 

bring that material into MDCs. And we’ll 

soon construct four dedicated centers 

around the Kingdom. These are 

strategically located, purpose-built 

facilities. And from there, we take the 

material either into storage or we deliver to 

the customer. We also have presence inside 

the Saudi Aramco facilities at 10 MSCs,” 

Wood said. 

Although the whole region is full of 

activity developing the non-oil sector, the 

fact remains that the Middle East is the 

proverbial sea of petroleum and mineral 

resources. Hence, the market potential for 

the oil and gas industry never waned, and 

instead, progressed more than ever. 

Business opportunities abound for sectors 

spanning the whole supply chain in the oil 

and gas industry – from upstream 

activities related to exploration and 

extraction of raw material to downstream 

activities related to refinery of raw material 

and sales of products. 

And taking advantage of filling the 

Dan Wood 

Regional Head of Sales and Marketing, DHL Exel Supply Chain ME 

In light of its promising partnership with Saudi Aramco 

and its successful deal with PDO, DHL Exel SC is 

confident of future deals with other major players in the 

O&G market. 

logistics needs of the market is DHL Exel 

Supply Chain. Dan Wood, Regional Head 

of Sales and Marketing for DHL Exel 

Supply Chain in the Middle East, related 

that the Company believes that, “there is 

an in-scope logistics spend of the major 

players of over 12 billion euros in the oil 

and gas industry, making the market 

potential extremely exciting.” 

Saudi Aramco and PDO 

The world’s leading crude oil producer, 

Saudi Aramco, recently contracted DHL 

Exel SC to develop its national logistics 

infrastructure. This encompasses the 

provision, management, and operation of 

four Material Distribution Centers (MDC) 

Wood also related that DHL Exel Supply 

Chain “invested heavily on the 

partnership,” in terms of providing 

customised services. “We have a fleet of 

over a hundred vehicles dedicated to Saudi 

Aramco. So far, we have also employed 

approximately 370 people specifically for 

the project, 75 per cent of which are 

Saudis.” 

“We also have a training program 

associated with Saudi Aramco project 

called, ‘Careers, not Jobs.’ It’s about giving 

everyone a personal development plan 

and there is English lesson for everyone. 

We are very proud of this program. It’s not 

just helping the employees, but also 

helping their families, as well. Investing 

heavily on the community – this is one of 

the key pillars of our solutions,” he 

continued. 

Starting with the implementation on 

January 2007, the transition to steady state 

of the DHL-Saudi Aramco partnership 

should be complete by July of the same 

year. 

DHL Exel Supply Chain’s partnership with 


Transportation 57 

There is an in-scope 

logistics spend of the 

major players of over 12 

billion euros in the oil 

and gas industry, making 

the market potential 

extremely exciting. 

PDO (Petroleum Development Oman), 

meanwhile, is now around three years 

old. “It’s a 4PL concept. We have a strong 

joint venture partnership in Oman with 

Bahwan Cybertek. We apply a control 

tower concept and we manage rig moves 

around the interior of Oman,” Wood 

explained. 

Wood related that the oilrig-moving 

process is “quite complex, because a rig 

move can take a while to do. We have to 

make sure that planning and execution 

complement, whilst ensuring the highest 

levels of health, safety and, 

environmental compliance.” 

For PDO, DHL Exel Supply Chain “has 

managed to take almost 30 per cent of the 

time out of rig moves. So far, we have 

removed nearly 2 million kilometers out 

of their supply chain through effective 

planning,” Wood related. 

Future deals 

Wood said that in light of its promising 

partnership with Saudi Aramco and its 

successful deal with PDO, DHL Exel 

Supply Chain is confident of future deals 

with other major players in the O&G 

market. 

“I think we’re almost changing the face of 

logistics partnerships through the Saudi 

Aramco deal, and the concurrent venture 

with PDO. There have been a lot of other 

major players, not only from the Middle 

East, but also in other parts of the world, 

like Africa, who have been in touch with 

us to see if can do something similar for 

them, particularly ensuring HSE 

compliance,” Wood said. 

Consequently, Wood noted that DHL Exel 

Supply Chain is looking at providing 

downstream services, like transportation 

of oil in the near future. “It’s definitely in 

scope for us. There is significant scope for 

growth there too.” 

In all, DHL Exel SC, Wood said, is capable 

of maintaining its position as the leading 

logistics partner for O&G major players, 

because: “Our strength lies in the global 

reach of the wider DHL family. We have 

500,000 employees under the Deutsche 

Post World Net umbrella, and that’s where 

we tap into the expertise. We demonstrate 

HSE excellence. Plus, we’re able to offer 

global inventory visibility in these agile 

supply chains – the ability to respond 

quickly with flexibility; we offer quality 

service levels, performance management 

portfolios and efficiency improvements, 

where cost-savings are associated. As you 

can see, we are very well-positioned to 

meet the requirements of the market and 

also of the major players.” 


58 Technology 

G-HANZ, CipherLab form strategic alliance to 

increase AIDC market share 

G-HANZ has announced a strategic 

partnership with CipherLab, a leading 

innovator in Automated Identification 

and Data Capture (AIDC) systems. As G- 

HANZ CIPHERLAB, the companies will 

jointly target emerging opportunities for 

supply chain management systems and 

auto ID equipment in United Arab 

Emirates, Saudi Arabia, and India. 

Exclusive interview with UK Ghosh, 

CEO/Board Member of G-Hanz. 

What is the objective and strategy 

behind home entertainment and 

international business solutions 

provider company such as yours 

entering the SCM and Data Capture 

devices market? 

G-HANZ has been a successful brand in 

the consumer electronics domain over 

the short span of 4 years. We have 

found overwhelming acceptance and 

appreciation among the end consumers, 

power retailers, large concept retailers 

and distributors through out our growth 

process. However, in today’s fast 

changing world, growth and excellence of 

a brand would depend largely on the 

ability to re-invent ones core values and 

adapt to the challenges of the future. We 

always believe in doing things the G- 

HANZ way. We have made a conscious 

effort to project G-HANZ as a technology 

based company with constant innovation. 

In this context, we have been investing in 

developing a project division which 

focuses on system integration solutions 

and technology based products. This 

division has successfully presented 

Hotel Interactive television (HITV) and 

Security Systems (CCTV). Since we 

identified the Supply Chain Management 

and associated vertical market segments 

as a major growth area for the future, it 

was a natural progression to move into 

exciting areas such as AIDC (Automatic 

Identification & data Capture) & RFID. 

Now that you have made a foray into 

Auto Identification and Data Capture 

(AIDC) market, will you shift focus from 

home entertainment to this area? 

There will not be any shift in the focus. G- 

HANZ will continue to maintain 

independent and undivided focus on each 

area through its dedicated divisions for 

Entertainment as well as business 

solutions. Both domains provide 

complimentary forces which will reinforce 

the identity and growth of the company. 

Is this decision a reaction to the fact that 

the AIDC market is increasingly 

becoming more lucrative with less 

competition? 

AIDC global market is already worth 

billions of dollars annually and growing 

at a phenomenal rate, accelerated by the 

enhanced emphasis on automation and 

modernization. With the forces of 

globalization dictating the course of the 

UK Ghosh 

CEO, Board Member of G-Hanz 

future trends in supply chain and data 

management areas, it is inevitable that 

even the emerging markets embrace 

AIDC technology with greater 

commitment. Decision of G-HANZ to 

move into AIDC is strategic and future 

driven. However, it is not motivated by 

so called ‘less competition.’ It is a 

specialized technology field and we are 

prepared to battle it out on merit, in order 

to achieve success. 

What do you really think of the UAE’s 

logistics industry? 

Endowed with its strategic geographical 

location, UAE’s logistics industry has 

attracted well known logistics brands 

over the years. We can see healthy 

fundamentals in place and we can expect 

greater growth in line with the enormous 

untapped potential. However, the rate of 


Technology 59 

“ 

Decision of G-HANZ to move into AIDC is 

strategic and future driven. However, it is not 

motivated by so called ‘’less competition.’ It is 

a specialized technology field and we are 

prepared to battle it out on merit, in order to 

achieve success. 

” 

growth would also depend on the ability 

of the logistics companies in embracing 

the latest technology, modern work 

practices and integration with the global 

trends. While promoting AIDC product 

range, these would be some of the issues 

we would need to point out. 

Tell us about your partnership with 

Cipherlab. What are they bringing to the 

table? 

Cipherlab is a recognized name among 

global leaders in the AIDC industry. Since 

1988 it has focused on the R&D, design 

and manufacturing of wide range of 

solutions. It is counted among the 

TOP-5 brands in the AIDC business 

and it is world’s No.3 in the hand held 

scanner segment. Therefore, G-HANZ 

Cipherlab brand name has absorbed 

elements of global excellence into its fold 

and we are capable of providing winning 

solutions with world wide recognition. 

What models are you planning to launch 

and when? 

Our products have already been launched 

and we are already in business. We have 

the entire range of products on hand. 

Some of the interesting products to name 

are: Mobile Computers, Portable Data 

Terminals, Hand Held Scanners, Fixed 

Scanners, wide range of data capture 

engines and peripherals. 

What does your products have in terms 

of uniqueness and innovation that your 

competitors do not? 

AIDC is a technology based business and 

industry leaders tend to adapt the latest 

trends in the wireless, software and data 

management protocol. In that respect, 

rather than creating distinction, one has 

to look at the parity and conformity with 

the most advanced working platform. G- 

HANZ Cipherlab is right up there 

among the very best. The real distinction 

is achieved through our customer focus, 

service excellence, distribution reach, 

speed of service access and 

approachability. In these areas, we can 

claim to maintain an edge on our 

competitors right from the beginning. 

What are the major changes effected to 

the company's approach to selling these 

products? 

Since AIDC is a technology segment we 

will have to focus on the sales & 

marketing strategies suitable for 

industrial products. Companies and 

corporate clients will be briefed about the 

issues which are critical for the growth 

oriented organizations such as: 

Operational efficiency, cost effectiveness, 

“ 

AIDC global market 

is already worth billions 

of dollars annually and 

growing at a 

phenomenal rate, 

accelerated by the 

enhanced emphasis on 

automation and 

modernization. 

” 

data security and storage, automation 

and flexibility and wire less 

environment etc. 

What kind of competition do you foresee 

from other players in the market? 

Some of the AIDC names have had a 

direct presence in Middle East for nearly 

a decade and they certainly have the pole 

position advantage. However, since the 

industry is young and many potential 

clients are contemplating on the AIDC for 

the very first time, we will use our 

product and service excellence to match 

up to our competitors. 

Which regional markets in the Middle 

East region/ globally do you find most 

promising? 

UAE and Saudi Arabia are the most 

important markets in the Middle East at 

the moment. India is another market with 

enormous potential. We have installed 

separate sales and technical teams in 

Middle East and India so that both 

regions can be addressed professionally. 

What is the future of G-HANZ? What 

surprises are in store for us in the next 

five years? 

G-HANZ is a growth oriented brand. We 

will look at diversity as our most potent 

growth stimulus. We will continue to 

invest in Consumer Entertainment and 

Technology solutions. Besides AIDC, we 

will also create thrust in the Hotel 

Interactive Solutions. We will also look at 

developing life style and leisure product 

lines which will bring synergy and 

complimentary force to our 

existing business. 


60 Product Watch 

Staff on-time and attendance 

biometric system 

Palm Scan is the first palm reader of its kind which identifies 

users by their palm print. Launched in the UK by exclusive 

distributor Databac Group, Palm Scan offers a state-of-the-art 

contactless solution for access control and time and attendance, 

for up to 2,100 users. Palm Scan is ultra-reliable, highly secure, 

easy to operate and very user-friendly. 

Boasting a false negative ratio of less than 0.1 per cent, Palm 

Scan is exceptionally efficient. Contactless operation means it 

can be mounted in a hermetic terminal (in the case of Palm 

Scan Outdoor) for a solution that is vandal-proof, weatherproof 

and totally hygienic - an important consideration in crisis 

situations like the SARS outbreak. Operation is as simple as 

holding the palm up to the reader, with no user training 

required, and importantly offering a user-friendly alternative 

to more intrusive biometric technologies like iris or facial 

recognition. 

With prices starting from around £1,000, Palm Scan offers an 

affordable solution at the high end of the biometric scale and 

comes in at three times cheaper than iris technology. 

Laser System enables paperless picking 

IPTI, Inc., one the industry's leading innovators in pick-to-light 

technology, introduces Laser-Pick(TM), a revolutionary system 

that brings "Pick to Light" picking technology to any operation 

without the limitations and cost of standard pick-to-light systems. 

Rather than paying for expensive electronics at each pick/put 

location, Laser-Pick(TM) utilizes high intensity laser beams aimed 

at special reflectors that visibly light up like a light bulb to direct 

pickers to pick/put locations. The highly visible green laser beam 

can service thousands of pick or put locations and can be utilised 

where pick-to-light can't at a substantially lower cost per SKU for 

fast ROI. 

The system, an industry first, utilizes the proven IPTI pick-tolight 

hardware and software backbone. Because the laser beam 

guides the picker, reflectors can be put anywhere without the 

limitations of wiring runs. For operations that must deal with 

changes in their layouts this approach is ideal. 

As with all IPTI picking systems, Laser-Pick(TM) handles 

multiple interfaces including wireless, Ethernet and RS-232 to 

manage the pick/put process. It is an excellent companion to 

voice recognition and RF Terminal based systems, reducing 

picking errors common to those systems while increasing 

productivity at the same time. 


Product Watch 61 

Next Generation Container 

Security Solution 

GE Security has announced the release of version 3.0 of its in-container security 

CommerceGuard System. 

The CommerceGuard container security device is located inside the container 

for protection from sabotage and the harsh maritime environment. 

CommerceGuard registers any opening of the container door. Fixed and 

handheld readers at critical points along the supply chain collect container 

status from the device and report it using the CommerceGuard Information 

Network. 

The CSD can deter and detect theft, smuggling and international terrorism by 

integrating container security devices with a global information network. 

Axis 211 Network camera, motion 

detection, PoE 

The Axis 211 is a professional-level network 

camera, suitable for indoor and outdoor security 

surveillance and remote monitoring applications. 

It is an ideal choice for monitoring buildings, car 

parks and other facilities over a local area network or across 

the Internet. Advanced functions include video motion 

detection, pre and post alarm buffers and alarm 

notification via e-mail. Using a progressive scan CCD 

sensor and a varifocal DC-iris lens, this camera 

provides high quality images at up to 30 frames per 

second (VGA 640x480 resolution). 


64 Case Study 

Juma Al Majid ‘marries’ all systems 

with Oracle 

Challenges 

The challenge for Oracle was to set up an 

integrated IT system to answer Juma Al 

Majid’s needs. 

The implementation of the new IT system 

of Juma Al Majid basically started from 

scratch. “We started the first phase of the 

project with the new digital firm setup. We 

bought new networking systems and new 

servers. We started standardizing and 

centralizing the IT and linking companies 

together with office automation – like 

email, windows, processing… Initially, we 

trained all the users to learn how to use 

PCs. We have a character-based system 

that was 20 years old. We started to teach 

them windows, outlook, and how to send 

e-mail,” shared Abu Farha. 

Juma Al Majid Group is one of the Middle 

East’s oldest and most diverse trading 

conglomerates. Made up of more than 40 

business units, it is engaged in a variety of 

industries including contracting, 

manufacturing, real estate, trading and 

automotive. The automotive business 

operates three companies that represent 

major automobile manufacturers, such as 

Hyundai, Isuzu, and Kia Motors in the 

United Arab Emirates. 

Before the utilisation of Oracle software, 

Juma Al Majid did not have a common 

platform and business strategy across the 

automotive division. 

The president of the IT division of Juma Al 

Majid, Jawad Abu Farha, said that, “the 

turning point for Juma Al Majid to organize 

Jawad Abu Farha 

President, IT Division of Juma Al Majid 

its IT system was the inspiration from 

government, which is a very good initiator 

of automation.” Abu Farha further 

added that, “we cannot be using very 

old technology systems and compete in 

the market.” 

Consequently, Juma Al Majid’s IT 

renovation started in 2000 with a complete 

plan to implement new technology. “This 

plan started by an initial return on 

investment study and also started with a 

strategy that has been detailed and outlined 

for all kinds of technologies, companies, 

and businesses, for all implementations. 

Once this return-on-investment plan was 

approved by top management, we started 

the implementation. And at that point in 

time, the Company’s computer system was 

de-centralized,” Abu Farha related. 

The implementation of the new IT system 

of Juma Al Majid basically started from 

scratch. 

The second phase, he added, started with the 

selection of the application. “We went 

through a selection process and then we 

chose Oracle. We started Oracle 

implementation in 2002 and finished mid 

2003. All the SBUs of Juma Al Majid were run 

by Oracle modules, including HR, Finance, 

Management, Accounting, Contracting. 

Also, we implemented CRM, Sales and 

Marketing services,” Abu Farha said. 

Another major problem area of Juma Al 

Majid was the “visibility of the division’s 

enterprise-level financial position to 

accurately measure and control costs of 

subsidiaries.” More, the Oracle system was 

required to “create a uniform application 

environment for staff to manage changing 

customer needs and optimize resources.” 

Solution 

A unified program was one of the key 

factors that Juma Al Majid needed, as 

Oracle studies showed, to “provide the 

needed flexibility and agility to enter new 

markets and add new companies to the 

corporate portfolio.” 

“That was the fastest and the most 

successful project for Oracle, and for a big 

group like us in the region at that point in 


Case Study 65 

time. The live run started in mid July 2003,” 

explained Abu Farha. 

Oracle E-Business Suite was put in place in 

order to consolidate Juma Al Majid’s 

systems for enterprise resource planning 

(ERP) and customer relationship 

management (CRM) into a single distance. 

Oracle then also “installed an array of 

financials, HR, and project-management 

modules to serve all companies in the 

division; and implemented a sharedservices 

structure for back-office financial, 

human resources, and logistics functions.” 

Using Oracle Discrete Manufacturing and 

Oracle Project Manufacturing improved 

speed and reduced costs of Juma Al Majid 

by streamlining and automating 

production processes at its concrete 

products plant. Oracle also employed 

their signature Human Resources to track 

skills, competencies, and performance in 

support of overall company goal to 

develop its skills base and expand its 

business portfolio. 

In all, Juma Al Majid’s operations gained 

overall efficiency and flexibility through 

the common systems framework created 

on Oracle E-Business Suite. This also 

provided Juma Al Majid with visibility 

over subsidiary activities and finances, and 

support decision-making. 

Benefits 

According to Abu Farha, all the companies 

under Juma Al Majid benefited from the 

implementation of the new Oracle 

technology. “At the group level, we were 

able to close our accounts faster, cleaner, 

precisely. We were able to achieve up-tothe-minute 

accounting and information 

system. There were many areas where we 

were able to acquire more functionality like 

CRM for example – instead of having 

more manpower, we had more systems. We 

have now much less people.” 

“In areas like inventory optimization, reorder 

planning is much precise for the 

group level and again for all types of 

businesses. The control is much more 

powerful because there is a system now. 

Collection has been enhanced. Ultimately, 

we deliver to the customers on time. Cash 

flow is much more optimized and 

utilized,” he added. 

Abu Farha also cited that Juma Al Majid’s 

automotive services now is more 

enhanced, using more powerful 

interactive tools like e-mail, SMS and the 

traditional but improved CRM through 

follow up calls. He related, “now that 

information is readily available, ROI is 

now more evident. The year 2005 was the 

golden year for us, hopefully this year we 

will exceed again our mark. All this surge 

profit is reflected because of good 

IT solutions.” 

“To sum it up, our automation was one of 

the most successful in the Middle East. This 

is admitted by many experts and by many 

other parties. Several companies have 

followed us. Many companies chose Oracle 

after our automation,” Abu Farha 

concluded. 


66 Legal Outlook 

Maritime law 

in the UAE 

The UAE is set to become a global 

shipping industry hub, from supplies, 

bunkering, and repair, to ship finance and 

maritime law. 

The UAE has become a sophisticated 

global shipping environment, with half of 

the world’s internationally trading fleet of 

tankers passing UAE shores once a year 

and a number of new companies are 

setting up their maritime business 

headquartered in Dubai. 

According to the maritime industry 

statistics, the UAE spends about half a 

billion dollars every 

year to buy materials 

for building, repairing, 

and servicing ships, while 

Dubai’s ship repair and supply 

sector caters to the needs of up to 

400 per year. With a surrounding 

sophisticated multi-dimensional 

maritime service sector, it is natural that 

the UAE has taken the opportunity to join 

the emerging maritime centres, with 

excellent facilities and a world-class 

infrastructure. 

The UAE is established as a major 

strategic hub for container operations and 

as a regional centre for ship management 

and a wide diversity of maritime 

service infrastructure, ship-repair and 

ship supply to ship classification and 

maritime law. 

The UAE Maritime Law is based on 

modern international law and maritime 

principles set out in International 

Conventions. 

Maritime disputes in UAE are determined 

in conjunction with laws such as Federal 

Law No. 26 of 1981 as amended (maritime 

Code), Federal Law No. 11 of 1992 (Civil 

Procedures Law), Federal Law No. 18 of 

1993 (Commercial Transactions Law) and 

International 

Conventions (e.g. 

IMO Convention of 

1948, SOLAS Convention of 1974, London 

Convention of 1972, Salvage Convention 

of 1989 and etc.) where the UAE is a 

member-signatory State. 

Discussed below are the UAE Maritime 

Rules concerning maritime accidents, 

collisions, and salvage. 

A ship is any installation or object 

which operates or is prepared to 

operate in maritime navigation 

without consideration as to its 

power, tonnage or the purpose behind 

its sailing. 

Maritime Collision takes place when two 

ships or other vessels run foul of each 

other, or when one runs of the other. In 


Legal Outlook 67 

such cases, there is almost always damage incurred. There 

are four possibilities under which an accident of this sort 

may occur. 

It may happen without blame being imputable to 

either party, as when the loss is occasioned by a 

storm, or any other fortuitous events, (a fortuitous 

event shall include, but not limited to: war, fire, 

labor strike, extreme weather or other 

emergency). In that case, the loss must be borne 

by the party on whom it happens to light, the 

other not being responsible to him in any 

degree. 

Both parties may be to blame, as when 

there has been a want of due diligence or 

of skill on both sides; in such cases the 

must be apportioned between them as 

having been occasioned by the fault of 

both of them. 

The suffering party may have been the cause 

of the injury, and then he must bear the loss. 

It may have been the fault of the ship which ran down 

the other; in this case the injured party would be entitled to 

an entire compensation from the other. The same rule is 

applied to steamers. 

Another case has been put, namely, when there has been some 

fault or neglect, but on which side the blame lies is uncertain. 

In this case, it does not appear to be settled whether the loss 

shall be apportioned or borne by the suffering party. 

Considering that the parties to shipping contracts do not only 

focus locally but also internationally, it may well be 

considered that these parties to an international contract will 

most likely be coming from different cultural and legal 

backgrounds, hence, contractual conflicts have to be dealt 

with uniquely as compared to domestic disputes. 

The shipping industry in the Middle East and the UAE in 

particular calls for highly specialized Admiralty Courts and 

Maritime Arbitrators in view of the fact that most contracting 

parties come from different languages, cultures, legal systems, 

and manner in conducting business. 

Due to the complexity of jurisdictions between contracting 

parties, the shipping industry prefers to have their dispute 

decided by a commercial man who has practical experience in 

the field, thus opting for Arbitration. 

Thus, UAE, with its state of the art facilities, is fast becoming 

a favoured turnaround destination for cargo ships. 

Dr. Khalid M. Kadfoor Al Mehairi 

Emirates Advocates 


68 Insurance 

Business Interruption Insurance can help you get back on your feet 

Risk Advice 

It is difficult to comprehend why many 

otherwise responsible businesses do not 

arrange business interruption (BI) 

insurance. For many, the awareness of 

insurance protection stops at the cover 

provided for physical assets such as 

buildings, contents and stock. But in the 

event of a major incident occurring, it is 

often the interruption to a company’s 

activities that will result in the greatest 

loss. In extreme, yet too often 

circumstances, this can result in a business 

having to cease trading. 

Even a relatively minor incident can have 

a big impact on a business if it relates to an 

integral part of the production process. 

For instance, damage to just one machine 

can completely halt production if that 

machine is a critical part of the procedure. 

This interruption may be long-lasting if 

the machine cannot easily be replaced. 

How does Business Interruption Cover 

work? 

BI cover will be arranged in conjunction 

with the property damage insurance. 

Effectively, it extends that cover to also 

include the ‘consequences’ of a major 

incident. These ‘consequences’ may result 

in a reduction in a company’s turnover. 

Additionally, there can be an increase in 

costs as the company attempts to make 

alternative trading arrangements and 

thereby minimise their turnover 

reduction. Both these factors will reduce 

the company’s gross profit over a period 

of time. BI insurance can compensate for 

this loss of gross profit. 

For a major incident such as a fire, 

explosion or catastrophic weather, the 

resultant damage can be so significant that 

a company will no longer be able to 

occupy their business premises. It may 

take time and expense to move operations 

to an alternative location. It can also take 

time to replace damaged stock, which might 

have to be sourced from another country. 

“ 

For many, the 

awareness of insurance 

protection stops at the 

cover provided for 

physical assets such as 

buildings, contents 

and stock. 

” 

When arranging cover, the policyholder 

will need to select an appropriate 

‘indemnity period’. This represents the 

MAXIMUM period of time that the 

policyholder considers it will take to 

resume full trading and, importantly, to 

recover any loss of market share. Usually, 

this will be set at a period of between 12 

and 24 months, although longer periods 

can be selected. 

What can be included in Business 

Interruption Cover? 

Interruption as a result of a major incident 

directly impacting the policyholder’s 

business is the obvious and most common 

situation. However, there are a number of 

additional scenarios not directly related to 

the policyholder’s business premises that 

may also have a devastating impact on 

turnover. BI policies can usually include 

these either in the standard policy cover 

or by way of special extension. These may 

include loss of business due to: 

An incident at a major supplier’s premises. 

If you are heavily reliant on one particular 

supplier of raw material, parts etc., then 

your business may be impacted by a 

significant interruption of their operations 

An incident at a major customer’s 

premises. Likewise, you may be heavily 

dependent on one particular customer 

who may be forced to cancel orders 

should their business be interrupted 

Denial of access to your premises following 

an incident at the premises of a neighbour. 

This may involve access to your premises 

for yourself or your customers 

Damage to public utilities. If, for instance, 

a local electrical sub-station or waterworks 

is damaged, this may have a big impact on 

your business for a period of time 

As is the usual comment here, insurance 

should be only part of the solution. A 

business can take additional steps to 

minimise the risk and consequences of an 

interruption. This may include having a 

contingency plan to enable continued 

trading; good physical protections to 

minimise the risk of an incident occurring; 

alternative suppliers who may be called 

upon or reciprocal arrangements with a 

‘friendly’ business to share premises or 

machinery on a short-term basis. 

But Business Interruption cover should 

never be ignored. It can often make the 

difference between business survival and 

business oblivion! 

Keith Byrne-MBA, ACII, 

Senior Underwriting Advisor Tokio Marine & Nichido 

Fire Insurance Co. Ltd 


70 Human Resources 

Cost of living 

in Gulf outstrips 

salary rise 

The cost of living in the Gulf is outstripping salary increases, 

leading to an increasingly disgruntled workforce and a more 

volatile job market. 

Salaries in the region went up by 15 per cent on average in 

2006, but the cost of living shot up by 24 per cent - and living 

expenses went up the most in the UAE. 

Everyone, everywhere is talking 

about this, whether its soaring rents, 

high education costs, escalating 

parking tickets or the price of a 

dinner at your local beachfront 

restaurant. It has replaced the 

weather as the main topic of 

conversation and has regional 

economists and bankers grappling 

with their spreadsheets. 

That was the verdict of a comprehensive online study of Gulfbased 

professionals by the Middle East's premier jobsite' 

Bayt.com and leading market research firm YouGovSiraj. The 

survey interviewed a cross-section of employees in the six 

GCC countries across more than 20 industry categories, from 

automotive to pharmaceuticals. 

Employers in Qatar and Kuwait awarded the highest pay 

rises in 2006, an average of 17 per cent. The UAE was second 

on the list with 15 per cent, but the Emirates recorded the 

biggest cost-of-living jump in the Gulf, 28per cent. 

Looking at the regional picture, workers in the private sector 

fared better than their government peers, earning an average 

pay hike of around 17 per cent compared to approximately 

13 per cent for public sector employees. 

According to Rabea Ataya, CEO, Bayt.com: “This new study 

presents a clearer picture of labour market conditions in the 

Gulf than ever before and uses the additional expertise of a 

recognised market research leader, YouGovSiraj. The rapidly 

growing regional economy is creating new human resources 

challenges, and employers and employees alike need to 

understand their implications.” 


Human Resources 71 

Despite the cost of living in the UAE shooting up 28% according to 

the survey, nearly half of the polled respondents said Dubai is their 

preferred place of work. 

The banking and finance sector awarded the most generous 

raises in 2006, increasing salaries on average by 19.5 per cent. 

Healthcare professionals (excluding doctors) were among the 

least pampered, receiving only 11.2 per cent more pay last year. 

Nassim Ghrayeb, CEO, YouGovSiraj, said: “A detailed 

questionnaire was shared with more than 270,000 registered 

members of the Bayt.com website, representing the broadest 

cross-section of working professionals in the region.” 

He added: “The survey addresses conditions, perceptions 

and behaviour in each GCC country and in over 20 different 

industry sectors.” 

cent according to the survey, nearly half of the polled 

respondents said Dubai is their preferred place of work. 

But the UAE's many attractions might not include more cash. 

Kuwait comes in with the highest average monthly salary in the 

Gulf, US$3,100. Saudi Arabia is second with US$3,000, and the 

UAE is in fourth place with an average monthly pay packet 

of US$2,750. 

Perhaps a change of career is the way forward? The majority of 

respondents in all the GCC countries would rather tackle a new 

industry than seek a better position in the same field in order to 

address the problem of higher living costs. 

Despite double-digit raises, most Gulf professionals want more - 

and employees in the UAE and Bahrain consider themselves the 

most deserving. The raise they felt they 'deserved' in 2006 was 

put at 33 per cent reflecting the higher cost of living in both 

countries. 

Employees were the least demanding in Saudi Arabia, where the 

average 'deserved' pay rise was recorded as 27 per cent. Overall, 

public sector employees in the GCC feel the most unsung, claiming 

they justified a pay hike of 39 per cent on average in 2006. 

So is throwing in the towel the answer to higher earnings? Gulf 

countries with large expatriate workforces appear the most 

volatile. In Qatar, 37 per cent of the survey's respondents said 

they would consider going back to their home country or 

relocating elsewhere in the Gulf to boost pay. 

Dubai stands to prosper from the itchy feet of disgruntled Gulf 

workers. Despite the cost of living in the UAE shooting up 28 per 

Rabea Ataya added: “Increasing inflation is putting pressure on 

lifestyles, but the general picture remains optimistic. On average, 

more than four fifths of respondents in the Gulf consider 

themselves 'on a par with' their peer group or 'somewhat better 

off'. But perceptions of living standards appear to have a 

direct impact on the length of time people expect to stay in 

one location.” 

Employees in Qatar are the most unsettled according to the 

survey, holding an average of 2.4 jobs in the last five years. And 

job-hopping across the region is most pronounced in the 

advertising, tourism, PR, travel and IT industries. 

Public sector employees may be less well paid, but they are more 

loyal. According to the survey, the average government worker 

spends more than seven years in the job while advertising 

employees stick around in the same post for less than four. 

Ataya added: “Interestingly, the lack of growth opportunities, not 

pay, is cited as the number one reason for leaving a job. 

Employers therefore need to pay equal attention to career growth 

and performance recognition, as well as to ensuring that salaries 

are competitive.” 

He said: “More than 60 per cent of our respondents said they look 

for a job while they're still in one, so employers should plan pay 

structures and growth strategies for their staff well.” 

Founded in 2000, Dubai-based Bayt.com has offices in 10 regional 

cities - Abu Dhabi, Dubai, Riyadh, Jeddah, Al Khobar, Doha, 

Manama, Kuwait City, Amman and Karachi. 

Based in the UK, YouGov uses online panels to provide research 

for public policy, market analysis and stakeholder consultation, 

and has a track record as the UK's most accurate pollster. 


72 Trade and Economy 

Non-oil trade through free zones reach new heights 

Growth Engines 

Dubai's non-oil foreign trade continued its steadfast growth last 

year despite tough competition in the international markets. 

Data compiled by Dubai World's Statistics Department show a 

robust rise of 9.15 percent in this sector of the economy 

during 2006. 

The statistics, based on information from Dubai Customs, 

showed that last year the value of non-oil trade stood at AED 

523.5 billion as against AED 479.6 Billion in 2005. 

H.E. Sultan Ahmed bin Sulayem, Chairman, Dubai World, said, 

“These results reflect the emirate's rapid economic growth in a 

relatively short span of time and what we can achieve in the 

global trade arena. There are many factors that have helped in 

pushing this economic expansion, especially the impressive 

growth in the real estate sector and the sharp increase in the 

number of international companies operating from Dubai 

including around 6,000 companies in Jebel Ali Free Zone which 

have also contributed to the robustness of our economy.” 

Adel Al Ashram, Senior Manager of the Statistics Department 

said, “Compiling the annual statistics for Dubai's foreign trade in 

a record time of just 15 days is a real achievement for us and is 

unmatched in the Middle East. These statistics play a crucial role 

in influencing decision makers and business leaders as they plot 

their strategies and future plans.” 

According to the figures released, direct non-oil foreign trade, 

that is trade carried out outside free zones, netted AED 316.5 

billion as against AED 280.4 billion in 2005 - an increase of 

12.8 per cent. 

Adel Al Ashram, 

Sr. Manager, Statistics Dept., Dubai World 

PERFORMANCE OF FREE ZONES 

Dubai's non-oil foreign trade through the emirate's eight free 

zones recorded an 8.9 per cent increase during the year 2006 

compared to 2005. 

Figures show that the total value of non-oil trade that passed 


Trade and Economy 73 

through the free zones last year amounted 

to AED 193.6 billion compared to AED177.8 

billion in 2005. 

“Imports through the emirate's free zones 

increased by 12 per cent, from AED 99 

Billion in 2005 to AED111 Billion in 2006, 

whereas the exports grew by only five 

per cent, from AED78.7 Billion in 

2005 to AED82.6 Billion in 2006,” 

Al Ashram informed. 

China topped the list of exporters to 

Dubai's various free zones with goods 

worth AED 18 Billion, followed by Japan 

with AED 10.7 Billion, USA (AED 8 

Billion), Finland (AED 6.8 Billion) 

and Germany in the fifth place with AED 

6.4 Billion. 

Iran was rated the top Exporter from 

Dubai Free Zones with a total value of 

AED 9.4 Billion, trailed by Saudi (AED 7.2 

Billion), Iraq (AED 4.7 Billion), India (AED 

4.5 Billion) and Belgium (AED 4.3 Billion). 

Al Ashram said: “The number of 

companies operating from the emirate's 

eight free zones has also witnessed 

substantial jump over the last few years, 

reflecting their role as growth engines of 

Dubai's commerce.” 

The Jebel Ali Free Zone reasserted its pole 

position by taking the lion's share of the 

“ 

The Jebel Ali Free 

Zone reasserted its pole 

position by taking the 

lion's share of the total 

non-oil foreign trade 

volume passing 

through free zones. It 

accounted for AED 136 

Billion, AED 79 

Billion in imports and 

AED 57.6 Billion in 

exports. 

” 

total non-oil foreign trade volume passing 

through free zones. It accounted for AED 

136 Billion, AED 79 Billion in imports and 

AED 57.6 Billion in exports. 

The Free Zone of Dubai International 

Airport took the second place with AED 

46.8 Billion, AED 25.8 Billion in imports 

and AED 21 Billion in exports. 

The Dubai Metals and Commodities 

Centre (DMCC) netted AED 6.3 Billion, 

AED 3.6 imports and AED 2.7 Billion 

exports, followed by Dubai Cars and 

Automotive Zone (DUCAMZ) which 

recorded AED 2.9 Billion, AED 1.8 Billion 

imports and AED 1.1 Billion exports. 

Dubai Internet City recorded AED 534 

Million, AED 472 Million for imports and 

AED 62 Million exports. 

Dubai Media City accounted for AED 251 

Million in business. 

And finally, Dubai International Financial 

Centre (DIFC) and Dubai Health City 

recorded imports worth AED 23.5 Million 

and AED 21.6 Million respectively. 


74 Events Spotlight 

Fifth edition of Gulf Maritime Exhibition to 

begin on April 16, 2007 

The fifth edition of the Gulf Maritime 

Exhibition, the only event dedicated to 

meeting the complete requirements of 

the region's commercial, government, 

and the military maritime industry, 

will begin at Expo Centre Sharjah on 

April 16, 2007. 

The three-day exhibition, under the 

Patronage of Sharjah Crown Prince and 

Deputy Ruler His Highness Sheikh 

Sultan Bin Mohammed Bin Sultan Al 

Qassimi, will host 110 exhibitors from 20 

countries including a national pavilion 

from Romania. 

“The Gulf Maritime exhibition is the 

Middle East's only exhibition that can 

claim to be full-fledged sourcing 

platform for each and every sector of the 

regional maritime industry,” said 

Saif Al Midfa, Director General, Expo 

Centre Sharjah. 

The 2007 edition of the Gulf Maritime 

exhibition will showcase Deck 

machinery and other vessel equipment, 

Docking equipment, Electronics, 

Communication and navigation systems, 

Engine and propulsion systems, Fuel 

and lubricants, Ride control systems, 

Sound and vibration control systems, 

Marine interiors, Paints and coatings, 

latest vessel building designs and 

technology, equipment for fishing, 

Offshore support vessels, cargo 

ships, tankers, tugs, ferries, and patrol 

boats, Ship repair and port operations 

products, and Cargo handling services. 

Among the major companies that have 

already confirmed participation at the 

coming edition of the show are Rolls 

Royce, Stromme, MTU, Cummins, 

Kobelt, Saab Rosemount, Reintjes, 

Hamriya Free Zone, Sharjah Ports 

Authority, ZF Marine, Westfalia, 

Wartsila, IHC Holland, UTS, Asry, Berg 

Propulsion, Kobelt, Thrustmaster, 

and Kongsberg. 

Major retail real estate developers to 

participate in MECSC Annual Convention 

The Middle East Council of Shopping 

Centres (MECSC) has announced that 

the MECSC Annual Convention will 

take place from 19-20 March 2007. 

The two-day leasing fair, trade expo and 

conference will see some of the region's 

leading retail real estate developers 

come together to showcase new mixed 

use retail projects and network at Hall 4 

of the Dubai International Exhibition Centre. 

Mike Davidson, President for the Middle 

East Council of Shopping Centres 

(MECSC), said, “Retail is becoming a 

major contributor to gross domestic 

product (GDP) for a number of Arab 

countries, particularly in the GCC. The 

Forum provides the ideal opportunity 

for the industry, retailers, analysts and 

other interested parties to see the scope 

for retail in the region.” 

The announcement comes as Retail 

International®, an independent retail 

consultancy offering specialist 

professional services to the retail 

industry has announced that organised 

retail space in the Gulf Cooperation 

Council countries will top six million 

square metres by 2007. The findings 

were published in Retail International's 

Review of the Year from a pan-regional 

survey of 250 shopping centres. 

With a number of new malls scheduled 

to open during 2007, existing malls are 

undergoing massive redevelopment and 

remodelling, firstly to attract new 

brands, and also to maintain footfall.

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