New free zone for trucks, heavy equipment

Dubai has announced one more free zone - Heavy Equipment and Trucks Zone (Hetz) in a view to boosting the re-exports of trucks and heavy equipment.

The new zone will have all facilities needed for the promotion of heavy equipment and trucks trade like administrative offices, licensing offices, banks, customs, chamber of commerce office, etc to serve the needs of the traders setting up office inside the zone.

Though the exact features of this free zone are yet to be worked out, Sultan bin Sulayem, chief executive of Dubai Ports, Customs and Free Zone Corporation, said that the new zone is also being set up in line with the already existing Dubai Customs, Automobile Zone (Ducamz) operating from Al Awir.

The new zone will also function under the umbrella of Jebel Ali Free Zone Authority. A working group has been set up from the representatives of truck and heavy equipment trade in order to hold discussions with the authorities on the future plan of action for the zone.

The new zone will also lease out space for those who intend to open shop in the zone as is being done in Ducamz. "However, the period of lease and details of rate will be announced later," Sulayem informed.

According to Sulayem, Jebel Ali Free Zone Authority has already acquired enough land and the development of the land is also completed. "We will be able to accommodate any number of traders in the new zone and there won't be any constraints on the space front," Sulayem said.

Dubai has been aggressively promoting free zones for the last last couple of years. It was during 1998, Ducamz was set up in Al Awir to promote the re-exports of pre-owned cars.

More recently, Sulayem announced the setting up of another zone for auto parts, called Dubai Auto Parts City (DAPC), aiming to boost the re-exports of auto parts from Dubai.

As per rough estimates, Dubai currently re-exports Dh300 to Dh400 worth of spare parts annually. Work on another zone dedicated for the promotion of textiles is also on and is expected to be completed soon.

Last few months saw Dubai announcing free zones for the promotion of financial services - Dubai International Financial Centre (DIFC), followed by Dubai Metals and Commodities Centre (DMCC), exclusively meant to promote trade of gold and other precious metals.