Warehouses in the free zone

With 47 per cent of the UAE’s industrial activity concentrated in the emirate of Sharjah, special business enclaves such as the Sharjah Airport International Free (Saif) Zone assume importance.

Saif Zone began operations in 1995 when the Sharjah and federal government authorities concluded the area around the airport had potential to house a great deal of industrial enterprises, particularly the not so heavy ones, thanks to its splendid geographical location.
As the only emirate with access to the UAE’s western and eastern coasts, Sharjah is well positioned to serve as a channel for trade.  Saif Zone is connected to both coasts by a highway, and this connection, known as the “Sharjah Link” has tremendous implications for the emirate and the country, providing as it does great transportation access to the Gulf states, the Indian Subcontinent, the CIS and African markets.  And that means, looking at a market of more than a billion consumers.
No wonder, Saif Zone has progressed to the extent it has. In 10 years, it has enrolled more than 1,600 businesses and the number is growing at the average rate of 35 per cent per year. A decade ago, the zone had just 55 tenants.
Saif Zone authorities are certain it is not only the geographical position that has mattered but also the range of incentives it is offering along with an aggressive approach in marketing.
The free zone has launched several road shows in recent years to take the message of high-class facilities to the Middle East and beyond. It has particularly been successful with Indian investors and about half the operating companies are Indian.
Heading a delegation to India recently, Saif Zone deputy director-general Saqer Al Qassemi told potential investors that one of the spinoffs from the oil bonanza was greater spending on the zone’s facilities so that it could attract even more entrepreneurs. An additional 2.5 million sq m was acquired to create plots for companies, both existing ones and new establishments. He told them activities such as IT services, mass media, trading, light-to-medium manufacturing and a range of service industries were in operation at the zone and all of them enjoyed quick access to Sharjah International Airport. The zonal companies could also enjoy the maritime cargo facilities at Port Khorfakkan, Port Khalid and Hamriyah Port.
One of the points marketing officials have been particularly successful in emphasising is that there are time benefits in being based at the free zone. They stress that goods going through the Sharjah International Airport do not even have to leave the premises, citing an internal access to the airport.  Many investors have appreciated the huge advantage of ease of cargo movement.
Saif Zone authorities like to think theirs is a unique organisation among the Gulf’s 26 free zones simply because it provides quick cargo movements and hassle-free administrative services on top of the usual benefits that free zones offer. As regards cargo, it has been explained that shipments routed by sea-air from the Far East to Frankfurt via Sharjah International Airport cuts up to 40 per cent of pure air freight, while taking a third of the time if only the sea route was taken.
Investors are also happy over the relative lack of red tape. The zonal authority is happy to take care of the administrative aspects with the least botheration to tenants, leaving companies to concentrate on the business for which they have enrolled at the zone in the first place.
 Investors at Saif Zone can avail themselves of some basic but state-of-the-art facilities including fully serviced and furnished executive office suites with reception, pre-built warehouses in two sizes with adjacent office space, lease land for unrestricted private development, a container parking area and temporary storage capacity.
Drawn by what’s on offer, a number of aviation-related firms have registered at the zone including, Chapman Freeborn and Caravella Inc, which provides aircraft chartering and leasing; Attibco, which deals in aircraft spare parts, and Cargo Net Airlines, active in aircraft leasing, chartering and airline operations.
Also among the tenants are Allsafe, which manufactures and assembles web slings and accessories; BRC Alfadi Reinforcing, manufacturer of welded wire, steel rebars, security fences and other steel products; Clipsal, which makes and distributes electrical appliances, switches, light fittings; Concorp, manufacturer and assembler of petroleum equipment; Aeroaire, manufacturer of heating, ventilation, air conditioning and related items; Al Rehab Perfumes, manufacturer of perfume and cosmetics, and Al Abdeen, producer of food items.
A number of trading companies have set up base at the free zone. These include firms active in repacking auto spares and trading in construction materials, leather products, electronic goods and ferrous and non-ferrous metals.
The free zone is also well known as a centre for the garment industry.