Business | Investment
Dubai to invest in trade zones worldwide
Dubai is to export its proven expertise in the free zone management by investing Dh29 billion in setting up industrial parks in different parts of the world.
- By Shakir Husain, Staff Reporter
- Published: 00:00 January 23, 2007
- Salma Hareb, chief executive of Economic Zones World, speaks to Chuck Heath, managing director of Jafza International, during a press conference.
- Image Credit: Tracy Brand/Gulf News
Dubai: Dubai is to export its proven expertise in the free zone management by investing Dh29 billion in setting up industrial parks in different parts of the world.
Economic Zones World (EZW), a new commercial entity created under government-owned holding company Dubai World, already has several projects under discussion in Pakistan, India, Oman, South Korea and Morocco.
EZW plans to invest Dh29 billion in developing and managing industrial zones both in the UAE and abroad over the next three to five years, a senior official said yesterday.
"That (Dh29 billion) will cover our capital expenditure, buying of land, acquisition of equity stakes," Salma Hareb, EZW chief executive, told Gulf News yesterday.
Hareb could not say how much money would be spent on international operations.
EZW will develop various kinds of economic zones, including free trade zones, business parks and industry-specific clusters.
EZW's domestic portfolio includes the Jebel Ali Free Zone Authority (Jafza), its international business arm Jafza International, Techno Park and Dubai Auto Zone.
The move comes following the acquisition of CSX World Terminals and British ports and ferry operator P&O by DP World, a sister concern of EZW and a Dubai World entity.
The initiative will help Dubai World to offer a comprehensive transportation, storage, logistics and real estate solution to create larger hubs in the port terminals acquired by DP World that would attract investments, officials say.
"We have learnt a lot while managing the Jebel Ali Free Zone in the last 20 years. We want to use our expertise globally," Hareb said, adding that Dubai wanted to move beyond providing consultancy and management services to owning industrial zones.
EZW's ambitious expansion drive is seen linked with the success of sister concern DP World in the ports business.
"Economic Zones World is well positioned to carry forward the mandate of Dubai World to bring new dynamism and strength to Dubai's role as a major economic powerhouse," Dubai World chairman Sultan Ahmad Bin Sulayem said in a written statement.
Jafza International manages free zones in Djibouti, Malaysia and Morocco. It has signed agreements for ventures in Oman, South Korea and Senegal.
Chuck Heath, managing director of Jafza International, said EZW is also keen to develop economic zones on a franchise basis and is willing to offer its expertise for a license fee.
He said EZW is studying industrial zone projects outside Karachi and at Port Qasim in Pakistan.
The new entity will pursue joint ventures, acquisitions, equity participation in South Asia, Southeast Asia, Africa, South America and the Middle East.
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