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Hamriyah Free Zone: springboard for expansion activities in the regional markets

Hamriyah Free Zone: springboard for expansion activities in the regional markets



Hamriyah Free Zone attracts investors

From rent holidays to sterilisation campaign to promoting its food park, Hamriyah Free Zone Authority (HFZA) in Sharjah, UAE, is making all efforts to attract investments and new clients

July 2020

As businesses across the region formulate strategies to overcome the challenges emerging out of the Covid-19 pandemic, free zones in the UAE are offering various incentives to retain existing clients and to attract new ones. Recently, DP World, the owner of the Jebel Ali Free Zone in Dubai, slashed fees for new licence registrations and administration fees for businesses operating in the free zone by 50-70 per cent.

The Hamriyah Free Zone Authority (HFZA) in Sharjah, UAE, is not far behind. From rent holidays to sterilisation campaign to promoting its food park, the Zone is making all efforts to attract investments and new clients.

The free zone, offered rent holidays during the construction phase for new units as well as existing units undertaking expansion to attract more investors to the industrial free zone.

The Zone’s Director Saud Salim Al Mazrouei said the rent holiday during the construction of projects is an added advantage for units (industrial and warehousing) apart from the usual incentives on offer.

“We offer very attractive rates, flexible payment schedule, the best incentives, and the best possible discounts to our customers, and probably the best prices in the market,” Al Mazrouei said.

Arab & India Spices will build 12 silos at the Sharjah Food Park

Arab & India Spices will build 12 silos at the Sharjah Food Park

Additionally, HFZA, launched a disinfection drive to sterilise all its facilities in cooperation with the Sharjah Environment Company (Bee’ah).

The sterilisation campaign covered the authority’s head office, Hamriyah Port Office and Hamriyah Port Customs Office as well as main and service roads, various internal and external facilities and offices, using highly effective disinfectants, according to the highest international standards.

The drive comes in line with HFZA’s precautionary measures being taken to prevent the spread of coronavirus (Covid-19) and to safeguard the health and safety of its employees and customers. It is also in line with the National Disinfection Programme.

Al Mazrouei said HFZA had intensified its sterilisation efforts in support of the ongoing measures taken by the UAE especially by the government of Sharjah to limit the spread of Covid-19.

“We, at HFZA, are working as part of our country’s comprehensive system in the face of this pandemic, which entails utmost efforts to ensure the health and safety of everyone. We are committed to be among the frontliners to confront and prevent the spread of the virus,” he noted.

The new drive that we recently launched comes in line with the national sterilisation programme and was carried out in cooperation with our strategic partners,” Al Mazrouei said.

Meanwhile, HFZA, announced that Arab & India Spices (AIS), the world’s second-largest pulses processor, will build 12 silos at the Sharjah Food Park with a total operating capacity of 52,000 metric tonnes of pulses at a time.

Located in the HFZ Food Park Phase 2, the facility consists of 12 pulses silos spread over an area of 11 million sq ft. It was developed by Ajman-based Arab India Spices (AIS) with a total investment of Dh150 million ($41 million).

The 12 grain storage warehouses will be constructed over a total area of 300,000 sq ft in the food park, a regional hub for the Middle East and North Africa’s multi-billion-dollar food industry, dedicated to food import, export, storage, manufacture and packaging.

This will be the Middle East and North Africa’s first of its kind facility with such a large organised storage capacity. It would cover the UAE’s consumption needs of beans and lentils for six months.

Hamriyah Free Zone Authority (HFZA): international recognition

Hamriyah Free Zone Authority (HFZA): international recognition

“We developed the food park to promote and develop value-added services for the sector as well as to contribute to the food security of the UAE. We can support all food companies who need good incentives for the long term. The free zone has space to accommodate more food clients as well as industrial units from other sectors,” said Al Mazrouei.

Currently, the food park houses more than 100 food factories developing, exporting and selling in the domestic market various food products, and offers services for certification and training in food safety and quality, according to an HFZ fact sheet.

The Arab & India Spices’ joining of companies investing in the Food Park is concrete evidence of the growing attractiveness and importance of the Hamriyah Free Zone, being a springboard for expansion activities in the regional markets. This will reinforce Sharjah’s position as a leading destination for foreign direct investment.

The project was announced during a ceremony held at HFZA’s premises in the presence of Sheikh Khaled bin Abdullah bin Sultan Al Qasimi, Chairman of HFZA, Saud Salim Al Mazrouei, Director of HFZA, Harish Kumarlal Tahiliani, owner of Arab India Spices, as well as senior officials from both sides.

Al Mazrouei stressed the joining of Arab & India Spices to the group of companies investing in the food park is a step in the right direction and will support Sharjah’s food industry in addition to enhancing its contribution to the Emirate’s diversification strategy.

“The global leader in the pulses and spice industry will definitely achieve significant gains thanks to HFZA’s competitive services and facilities, which will help it develop and augment its investments,” Al Mazrouei said.

The storage warehouses of Arab India Spices would have a capacity of 52,000 metric tonnes of pulses, the company’s managing director Harish Tahiliani said. He noted that eight of the 12 silos would have a capacity of 5,000 tonnes each and the other four are of 3,000-tonne capacity each. The new facility can store, process and cater to the pulses needs of the entire population of the UAE for at least six months, he said.

The facility is a fully automated loading and unloading system for storage and delivery in wholesale of pulses and lentils. Mysilo of Turkey erected the silos.

AIS is also setting up a factory adjacent to the silos for splitting and processing lentils, meant for export. The new factory in Sharjah will free up the Ajman facility, which is going for capacity expansion of lentils and pulses processing from the current 700 tonnes per day to 1,000 tonnes in phases.

Tahiliani said, “The competitive services offered by Hamriyah Free Zone perfectly meet our expansion requirements, especially its shipping and logistical facilities, which match the highest international standards, facilitate and accelerate the doing of businesses.”

“The project’s launch is promising, once inaugurated, it will shoot up our investments in the UAE from Dh350 million to  Dh500 million, a growth of 43 per cent,” he said, adding that if more silos and warehouses are built, they will be used to store rice, wheat and grains.

He highlighted that the GCC markets account for about 60 per cent of the company’s operations and activities and that the UAE is the first market targeted by the company followed by the Kingdom of Saudi Arabia.

 

EXPORTERS FROM KERALA

Federation of Indian Export Organisations, Kerala Chapter jointly with Hamriyah Free Zone Authority organised a seminar on the opportunities available in UAE for exporters.

Speaking on the occasion, Ali Al Jarwan, Deputy Executive Director, Hamriyah Free Zone, said India has emerged the third largest trading partner of UAE after China and the US and the trade between two countries has touched $60 billion today compared to $180 million in the 70s. Moreover, UAE is the second largest export destination of India. For UAE, India is the largest trading partner.

With this strong bilateral trade opportunities, both the countries are looking forward to see higher growth in the coming years, he said.

Free zones provided a congenial environment for the acceleration of economic development in UAE. Following the emergence of UAE as a major re-export centre, Indian companies have emerged important investors in the free trade zones such as Hamriyah free trade zone, he added.

 

BRAND RECOGNITION

The zone bagged the “UAE’s Fastest Growing Brand 2O18-19” award in India, reaffirming the Zone’s international standing as hub for businesses.

Also, Saud Salim Al Mazrouei, Director of the Hamriyah Free Zone Authority and Sharjah Airport International Free Zone, also won the ‘Leader Award’ in recognition of his efforts to develop, improve and modernise HFZA’s services and facilities meet the growing needs of investing companies.

The two awards were presented to Al Mazrouei during the Awards and Business Summit held on the sidelines of 12th Asian Business and Social Forum 2019 recently organised in Mumbai, India. The event was attended by a number of business leaders and owners of successful international brands.

The accolade will promote the status of Sharjah and enhance the reputation of its free zones as a global magnet for business and innovation.

“Winning the UAE’s Fastest Growing Brand 2O18-19 is yet again another international recognition of the quality and efficiency of the services, infrastructure, facilities and amenities provided by the Hamriyah Free Zone to its customers and investors,” said Al Mazrouei.

“It is also a recognition of the wise vision of His Highness Dr Sheikh Sultan bin Mohammed Al Qasimi, Member of the Supreme Council and Ruler of Sharjah that catapulted Sharjah into new levels of excellence and economic diversification, making it an attractive destination for all foreign investments” he added.




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