Dubai's airport-oriented free zone has indicated it will proceed towards a third-phase expansion having already succeeded in attracting reputed international companies that originally had planned to set up regional offices in the Far East.

The expansion will include two new buildings and light industrial units, the Dubai Airport Free Zone Authority (Dafza) said. It comes in the wake of completion of two phases of infrastructure development that has seen 141 companies establishing a presence in the zone including high-calibre blue-chip organisations selected from more than 400 applicants.

They include Boeing, Chanel, Estee Lauder, FedEx Logistics, IBM, Johnson & Johnson, Matsushita Avionics, Porsche, Ricoh, Rolls-Royce, Samsonite, Thomson Broadcast Systems and Juma Al Majid.

The first phase of the free zone was completed in March 1999 and included two six-storey buildings totalling 14,772 sq m, of which 9,500 sq m was available for rent. That phase also embraced 24 warehousing units, with a space of 353 sq m each. Dafza saw to it that the infrastructure was world class to include digital communications, satellite facilities, reliable power supply and ultramodern equipment and utilities.

In addition, facilities have been provided for further business convenience. Dafza's business hall includes the conference room, which offers advanced visual aids and occupies 115 sq m of space, enough to accommodate a large audience. Another facility is the business lounge, a spacious 93 sq m facility, meant to be a place of relaxation for senior managers and executives. Furthermore, a 99 sq m lecture room, designed for training and seminars conducted by the free zone's companies, has been provided.

Dafza has successfully given out on rent all of its "current" buildings and warehouses. The phase 2 expansion of the new building has been successfully completed. The expansion includes a total office space of 10,830 sq m in the new building, from which 41 per cent is already reserved, and 14 warehouse units.

Dafza, part of Dubai Airport's $500 million expansion programme, was established in 1996 to strengthen the Dubai government's strategic plan to be an investment-driven economy. It became operational in 1999 with the construction of the first-phase facilities. The following year Dafza became a fully independent authority.

"We are the only airport-oriented free zone in Dubai. Companies that need to manufacture, store and move goods out by air at short notice will opt to invest in our free zone. We can help these companies meet their world demand from here", said Mohammed Al Zarouni, the Free Zone's director general.

"The idea behind the establishment of Dafza was to create an ideal business environment for big international companies that would select the zone not only as a base for UAE activities but also as a regional base for manufacturing, distribution and services," said Shahla Abdul Razak, sales and marketing director of the authority.

"The free zone's location on the threshold of the Asian and Commonwealth of Independent States (CIS) markets makes it an ideal base for any company seeking to service those enormous and profitable markets. Dubai's geographical location at the crossroads of the world and its excellent networking with the rest of the Middle East and the Indian subcontinent gives the companies the delivery and logistical edge that their customers would demand," she added.

The official also said recently that Dafza had scrapped the system of charging a fixed rate for land leasing and rates were now negotiable for companies intending to open shop in the free zone. This was done in the hope that more world-class companies would seek to come in as tenants.

Dafza's location on the north side apron of the airport gives it another advantage since Dubai International Airport is already one of the most modern in the world, ranking amongst the top 50 international airports, carrying 12.3 million passengers and serving 91 international airlines that cater to 136 destinations. Additionally, Dafza is just 15 minutes from Port Rashid and only five minutes from the city centre, which allows businesses to increase their efficiency and profitability, as their response times and transportation costs are reduced.

Since Dafza is situated within the vicinity of an airport, activities permitted at the zone are limited to high-value, low-volume products, which require a rapid access to markets. Therefore the free zone is an ideal location for high-tech and IT products, luxury items, jewellery, light industries and assembly operations and activities related to the aviation industry.

In line with Dubai's policy of offering a free and fair business environment, the Dubai Airport Free Zone provides attractive business incentives including 100 per cent foreign ownership, a corporate tax holiday for 15 years renewable for an additional 15 years, no personal income tax, freedom to repatriate both capital and profits, full exemption of import duties and no currency restrictions. Dafza's striking feature is that it is a gateway for a market of over 1.5 billion people.

It also provides top-level services as evidenced by the ISO 9001 award in March 2000, which came as a result of its implementing a policy of quality assurance in all types of services provided to customers at various stages.

Dafza offers a one-window operation that takes care of such things as staff recruitment, maintenance, 24 hours' security, sponsorship of companies and dealings with local government agencies such as the Naturalisation & Residency Authority (Immigration) and customs authorities. This would entail sponsoring the companies' personnel, handling of visas, residency and entry permits, health cards and medical records.

Moreover Dafza's administration department handles all telecommunication applications of its companies for services including the Internet, ISDN, telephone and fax. The Authority has invested Dh 1 million for introducing an e-government service system.

Dafza is capable of meeting all cargo handling, storage and distribution needs efficiently and professionally with just-in-time delivery systems through superior logistic services operated by DNATA and other well-known international companies such as Danzas, DHL and FedEx.

A healthy working environment exists at Dafza with the presence of banks, travel agencies, a duty free shop and postal services as well as a food court with many restaurants and cafes.

"So, if you are looking for a stronghold in the Middle East for your business, rest assured, we at Dubai Airport Free Zone Authority look forward to providing you with the best of opportunities to ensure your success," remarked Dr. Al Zarouni.