Dubai Financial Free Zones Part II
This column continues the discussion of Dubai Financial Free Zones.
Dubai Biotechnology & Research Park
Dubai Biotechnology and Research Park (DuBiotech) is a science park development in the city of Dubai modelled on the free zone concept. It has been under construction since the official launch in February 2005 by Sheikh Mohammed bin Rashid Al Maktoum, the vice-president and Prime Minister of the United Arab Emirates. The DuBiotech headquarters will be based in the bio headquarters building with the laboratories to be located in the Nucleotide Complex, which can accommodate up to 160 laboratory units.
DuBiotech is a subsidiary of Dubai Holding and will work with the biotechnology industry in facilitating government funded research and development (R&D). The world-class infrastructure includes facilities and services for incubators, R&D labs, biotech-related educational and research institutions, manufacturing as well as organisations from supporting and related industries.
100% foreign ownership, repatriation of profits and tax-free operations are provided to business partners. The web site states DuBiotech provides fast-track administration, easy company licensing and visa procedures.
DuBiotech will offer products such as office space, laboratory space, and land area for manufacturing and R&D operations to facilitate a networking environment for collaboration within the biotech community. Due to the presence of hotels, retail, hospital, schools, safety and security measures and residential facilities within the park, a high quality lifestyle will be available.
In accordance with regulatory standards established by key organisations, DuBiotech regulations are being developed. These organisations include the FDA, WHO and ICH that govern all sectors of the life sciences industry, including Biotech and Pharmaceutical, Diagnostic and Medical devices. DuBiotech is committed to developing and enforcing regulations for health and safety, good manufacturing practice (GMP), good laboratory practice (GLP), quality control and assurance, waste management, environmental issues, and bioethics.
The DuBiotech Foundation for Research and Innovation (FRI), with government support, plans to fund research focused on medical, environmental and agricultural issues relevant to the Gulf region. DuBiotech is developing the grant policy, application process, and funding mechanisms for FRI. Grants proposals will be reviewed on their scientific merit, economic impact, and potential regional benefits. DuBiotech’s science investment committee will consider joint ventures between DuBiotech and biotechnology companies.
DuBiotech has partnered with leading national and international institutions in an effort to focus on developing a world-class R&D infrastructure and a dynamic business environment. These partners include: RTI International, Frankfurt Biotechnology Innovation Centre (FIZ), CUH2A, DOHMS (Department of Health and Medical Services, Government of Dubai), UAE University and CERT (Centre of Excellence for Applied Research and Training). Companies interested in partnering with DuBiotech may contact: info@dubiotech.com
Biotech Offerings listed include:
• fully furnished executive office units with access to a business centre and meeting rooms;
• fully equipped workstations, each with a PC and high-speed internet connection;
• core and shell office space in various sizes;
• shell laboratory modules allowing flexibility of design ranging from clean rooms to analytical operations, and a small office area. Laboratory modules can also provide a fume hood, wet and dry bench;
• land available for manufacturing units, R&D facilities, training centres, warehousing facilities, headquarter buildings, etc.;
• on-site district cooling, waste management systems and gas distribution network;
• academic/research institutions;
• training institutes for continuing education;
• convention centre for hosting regional and international events.
Companies operating from DuBiotech enjoy a one-stop-shop that facilitates easy incorporation and entrance into the region, in addition to specific benefits that relate to the biotech industry.
DuBiotech partners also receive these listed benefits:
• 100% foreign ownership;
• 100% repatriation of profits;
• 100% tax-free operations;
• Single window for government services;
• Long-term lease;
• Partners easily incorporate companies;
• Special customs exemptions;
• Fast-track visa services.
Dubai Multi Commodities Centre
Dubai, popularly known as the “City of Gold”, in 2002 established the Dubai Multi Commodities Centre (DMCC) Free Zone; a commodity market place in Dubai. It provides a market infrastructure and a full range of facilities specifically for the gold & precious metals, diamonds & coloured stones, energy and other commodities industries. It is “A” rated by Standard and Poor’s. It will integrate the refining, manufacturing and trading of gold and the trading of platinum, palladium, silver and other precious metals.
The DMCC’s listed objectives include:
• creation of a dedicated market place in Dubai;
• increasing the value and volume of commodities traded in and through the region;
• facilitation and integration of the entire value chain of its key segments;
• broadening the local market horizon e.g. Refining – Manufacturing – Trading;
• creating industry specific market infrastructure for its core segments, innovating new products and services;
• providing a supportive business environment through purpose-built infrastructure;
• promoting regional industry growth;
• enhancing local industry through implementation of international standards.
DMCC offers market participants the following listed benefits:
• 100% business ownership;
• purpose built infrastructure;
• ability to purchase or lease premises;
• world class security systems;
• single Window Clearances (incl. Licensing, Immigration, etc);
• preferential freight rates;
• guaranteed 50 year tax holiday on personal and income taxes;
• regulated environment;
• no foreign exchange controls or barriers to entry;
• no restrictions on capital repatriation;
• one facility for the processing of all documentation including immigration, registration and licensing.
The DMCC development will include the Almas Tower (Diamond in Arabic), the AU Tower and the Ag Tower, in addition to plots of land allocated for special manufacturing operations, located in close proximity to Dubai’s emerging projects and developments. Each purpose-built tower will have facilities that enhance trading and will provide commercial and support facilities for market participants in DMCC’s specialised segments: gold & precious metals, diamonds & coloured stones, and commodities.
DMCC’s listed facilities include:
• high tech, secure vault facilities;
• assaying facilities;
• settlement;
• package delivery;
• shipment facilities;
• preferential rates - bullion freight;
• a purpose-built Jewellery and Gemplex (Offering Secure Connectivity Worldwide to Under-Served Business Markets) to facilitate the manufacture of precious metal jewellery; and
• a commercial tower to house wholesale, trading and banking operations.
Dubai Gold & Diamond Park
The Dubai Gold & Diamond Park officially opened on 29 May 2001, with 37 retail outlets and 118 manufacturing units. The Dubai Gold & Diamond Park is a ground floor retail facility and a three-story manufacturing block (G + 2), all with lease arrangements.
The listed services of the Gold & Diamond Park include:
• assisting tenants in all government-related issues;
• 100% foreign ownership of the businesses and full Free Zone facilities and benefits of the Jebel Ali Free Zone (JAFZA) (See http://www.uaefreezones.com/fz_jebel_ali.html);
• all capital and profits may be repatriated;
• no corporate or income taxes;
• may operate 24 hours a day, 7 days a week;
• expatriate workers may be hired;
• central air conditioning and gas distribution system for each unit;
• proper ventilation systems, exhaust facilities and provision for acid disposal waste collection;
• security personnel, video surveillance, fire alarms and fire defence systems;
• shuttle transportation to five-star beach hotels.
Emaar Properties PJSC is a Dubai-based Public Joint Stock Company listed on the Dubai Financial Market and is part of the Dow Jones Arabia Titans Index. Emaar Properties approved the Gold & Diamond Park Phase 2 Project, with construction having begun. This project will consist of one retail office building, three offices with showrooms, and two manufacturing buildings with 154 workshops.
A lease agreement must be entered into with the management of the Gold & Diamond Park. Prior to entering into the lease agreement, rent must be paid for the leased unit, which consists of a refundable security deposit in the amount of 15% of the yearly rent, as well as a refundable deposit of 15% of the yearly fit-out costs, maintenance charges and other charges, if applicable. In addition, after the signing of the lease agreement, an AED 5,500 licensing fee must be paid. Upon receipt of the necessary applications, the Jebel Ali Free Zone Authority issues a certificate of incorporation and a letter to the tenant’s bank where the account will be opened.
Dubai Health Care City (DHCC)
DHCC was launched to serve Europe and Southeast Asia. Its purpose is to provide the highest quality health care services with respect to medical care and wellness through creating a world-class group of health care professionals and service providers in the heart of Dubai. It aspires to provide services with respect to problems facing patients in the region with state-of-the-art medical care services in specific disciplines. The DHCC also desire to offer local and international investors, regional businesses and the global health care industry investment opportunities.
Dubai Logistics City (DLC)
DLC is a part of the upcoming Dubai World Central International Airport and is next to Jebel Ali Port and Free Zone. It is the world's first truly integrated logistics platform with all transport modes, logistics and value added services, including light manufacturing and assembly, in a single customs bonded and Free Zone environment. Dubai World Central (DWC) is a 140 square kilometre urban aviation community around the DWC-Al Maktoum International Airport. It is a city-within-a-city, currently being built 40 kilometres from the existing Dubai International Airport (DXB). DWC supports Dubai’s aviation, tourism, commercial and logistics requirements until 2050 and beyond.
Jebel Ali Port, constructed for port workers in the 1970s, is 35 kilometres southwest of the city of Dubai. The Dubai Port Authority (DPA) announced in 2008 that all cargo operations would be moved from Port Rashid to Port Jebel Ali. Port Rashid is a cruise terminal and mixed-use urban waterfront area. Port Jebel Ali is 134 kilometres (52 square miles) it is the largest man-made harbour in the world and it is the largest Middle East port. It consists of over five thousand companies from 120 countries. It is the US Navy’s most-visited port because of its deep harbour and large facilities. The harbour and facilities will accommodate Nimitz-class aircraft carriers and battleships. US service personnel frequently visit the port and refer to it as “The Sandbox.”
Companies optimise their supply chains, due to the location of DLC and use it in the following listed areas:
• a hub for sea-air or air-air transport combinations;
• logistics operations such as merge-in-transit, customisation, postponement, packaging and labelling, final assembly;
• a hub for the expanded region with reduced warehouses and improved customer service;
• a platform to control distribution, such as by direct sales.
DLC is part of the Dubai World Central Free Zone and provides the following listed advantages of a free zone:
• no corporate or personal income tax, no customs duties;
• 100% foreign company ownership and free capital transfers;
• visa regulations are easy to comply with and there is an easy availability of skilled workforce.
The March issue of Dubai Digest, will conclude the discussions on Dubai Free Zones.
END NOTE
The information used to write this column came primarily from the following Web site for the Free Zones in the United Arab Emirates: http://www.uaefreezones.com |
