Mumbai group planning project in Fujairah Free Zone

NEGOTIATIONS ARE in the final stage with Mumbai based group of investors for locating a $40 million project in the Fujairah Free Zone (UAE). The secretly guarded deal under `wraps' for now will be finalised within a month.

The Fujairah Free Zone Authority, which takes pride in having attracted 75 Indian companies into the zone with investments to the tune of $100 million made in the last decade, is likely to come out with the announcement clinching the investment (project) proposal soon.

Sherif Al Awadhi, Director General, Fujairah Free Zone Authority (FFZA), who was here on Tuesday to invite entrepreneurs to set up projects in the Free Zone, told The Hindu that the proposal was getting finishing touches, and requested that the area in which the investment was to be made be kept confidential, given the extremely competitive environment.

The non-oil producing 10 km radius city of Fujairah Free Zone has 140 companies, 41 of them into manufacturing. There are several companies from India which are into manufacture of cigarettes, foundries and recycling aluminium. The zone has a turnover of about $300 million and is targeting a $1 billion business in a few years. The total foreign investments in the zone since 1990 are estimated at $260 million.

Mr. Awadhi is now on one of his frequent visits to India to attract investments. He carries with him the commitment of the FFZA ``To licence you within one hour in one visit through a one window operation".

The investments they are looking at are in the fields of trading, manufacturing and assembling in all sectors including IT, steel, oil, electronics, among others. Incentives for foreign investors include 100 per cent foreign ownership, no personal and corporate income tax, and free repatriation of capital and profits. There are also no import duties and no currency restrictions. The USP is, of course, the ``approval and licensing within one hour''. All this assistance at what cost? Mr. Awadhi says all licensing formalities can be completed within less than $3,500. And the service does not end here, he says. It extends to areas such as helping in accommodation, schools, hospitals opening of bank accounts and even obtaining driving licences. Mr. Awadhi who visited Bangalore and Hyderabad, will be back by the month end on his single man mission to Chennai and Kerala to attract entrepreneurs from those places.

Vikram Reddy

in Hyderabad

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