The Hindu Business Line : `Hamriyah Free Zone has everything for businesses'

THE Hamriyah Free Zone in Sharjah, UAE, offers businesses a free operating environment, ready infrastructure, a tax-free regime and quick clearances, said its officials during the course of a presentation to businessmen and industry hands here.

At a seminar organised by the Madras Chamber of Commerce & Industry, officials of the Free Zone said that businesses set up there could be entirely owned by investors. General ownership rules in the UAE require a local partner.

The delegation of officials, led by the Head of Sales, Mr Suood Al Mazrooei, said all businesses in the zone were allowed to recruit people from anywhere in the world. The delegation assured participants at the seminar that once investors submitted relevant documents, the clearance would come through in 24 hours.

In response to a question from a participant about special finance for businesses located in the zone, Mr Al Mazrooei said that investors would have to rely on the general banking network.

He added that Indian banks had provided assistance to Indian investors there - about 26 per cent of the existing investors are from India.

Another official told participants that labour laws were framed in a manner that favoured employers, while the environment requirements conformed to "international standards."

The electricity charge in the Free Zone is 6 cents (Rs 2.60) for a unit. Mr Al Mazrooei said the Free Zone authorities hoped to reduce the charges by the end of the year by using natural gas to generate electricity.

The delegation told the participants that goods imported into the zone for subsequent export would not attract customs duty.

In the event goods made in the Free Zone are sent into the UAE for eventual sales, a 5 per cent customs duty would have to be paid, said officials.

An Emiri Decree established the Free Zone, spread over 12 million square meters, in 1995. Businesses located there are leased space for a period of 25 years at a time, and given an option to renew the same.

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