Riding high on the strengths of its diverse economy, business-friendly environment and low operating costs, among other competitive advantages, Sharjah has emerged as an important Middle Eastern industrial hub, with the sector accounting for around 17 per cent of Sharjah’s GDP and around a third of manufacturing activity in the UAE as a whole, according to official sources.

Strategically located between Africa, Europe, and Asia, Sharjah is largely considered as the shipping sector of the country. However, much of its industrial activity is concentrated in two free zones that allow for full foreign ownership, namely the Sharjah Airport International Free Zone (SAIF Zone) and the Hamriyah Free Zone (HFZ).

And in recent times, the government has taken proactive steps to bring foreign investment to create enormous opportunities for the businesses set up in Sharjah free zones.

Lalu Samuel

Lalu Samuel, Chairman of Kingston Holdings Group and Chairman of the Representative Committee of the Industry Sector at the Sharjah Chamber of Commerce and Industry (SCCI), who is also an investor in the UAE is a testimony. In an interview with Wam, he said his success in the UAE began in 1995, mainly at the Sharjah International Airport Free Zone, thanks to the UAE’s distinctive investment climate that enabled him to grow his business into one of the largest in Asia and the region.

Samuel said that Sharjah is an ideal base for industrial operations, as it accounts for 44 per cent of the country’s industrial sector, with nearly 2,800 manufacturing units spread across 18 industrial zones and two free zones.

The Sharjah International Airport Free Zone is a comprehensive ecosystem that is conducive for all commercial businesses, especially as it provides integrated services and qualified staff who can provide all forms of support to various businesses, to complement its many other facilities and advantages, he added.

Samuel expressed his appreciation of the efforts of HH Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, in supporting business owners and investors, especially during the Covid-19 pandemic, highlighting the attractive incentives that Sharjah Government offers to companies operating in the emirate, such as exemption from fees, discounts on rentals and diverse payment methods.

Samuel further added that the Sharjah Government not only aims to attract investments, but is also eager to help existing companies achieve profitability and prosperity, as it prioritises economic stability, as well as corporate social responsibility and environmental preservation.

Hamriyah Free Zone

He explained that they have launched several social programmes, such as the transformation of Wasit Police Station into an eco-friendly operation, in collaboration with Sharjah Police, and the establishment of a mechanical engineering lab, in cooperation with Sharjah University, affirming that sustainability among their top priorities.

Touted as the oldest, largest, and fastest-growing free trade zone in the Middle East, SAIF zone is famous for providing quality services in line with the forward-looking strategy of the UAE leadership.

SAIF Zone delivers a host of incentives and privileges, such as: customs clearance, sophisticated infrastructure, state-of-the-art facilities with air-conditioned and furnished executive suites, pre-built warehouses in various sizes with adjacent office space, and lease lands for unrestricted private development.

The free zone’s incentives also include 100 per cent foreign ownership of businesses, 100 per cent repatriation of capital and profits, and 100 per cent corporate or personal income tax exemptions, 100 per cent import and export tax exemptions. This is in addition to 24-hour services, all licenses issued within one day, and a hotline that guarantees the availability of immediate manpower, equipment, shipment and customs clearance, 24/7 security and emergency services as well as labour accommodation within the zone.

New Investments

SAIF Zone further enhanced and secured its position as a prominent hub for global investors after signing an investment deal with the Indian Forpack Industries, a leading manufacturer of recycled Kraft Board & Coreboard Paper.

SAIF Zone: providing quality services

Under the terms of the deal, Forpack Industries is set to establish its first headquarters in the UAE by leasing four warehouses at SAIF Zone’s U2 area across a total area of 25.833 sq ft.

The MoU was signed by SAIF Zone’s Director Saud Salim Al Mazrouei and Samir Lakhani, Chairman of Forpack Industries, in the presence of senior officials from both sides.

“This agreement represents a new global recognition of the lucrative opportunities provided by the Emirate of Sharjah and SAIF Zone to investors and companies willing to get the most out of growth opportunities in the industrial and logistical services sector in the region, as well as the advantages provided by the ‘U2 area’, which is equipped with new world-class warehouses and state-of-the-art equipment in the field of warehouse engineering and design,” noted Al Mazrouei.

“By investing in SAIF Zone with its strategic location and competitive advantages, I can confirm that we are on the right track to strengthen our bonds with our customers in new parts of the world and enhance the competitiveness of our company,” he added.

The new industrial facilities are furnished with Italian machines with a production capacity of 1,000 kg per hour, with 60 per cent of the production to be allocated to UAE markets and 40 per cent to European, American, and South Asian markets, he added.

Agreement with Torrecid

Earlier, SAIF Zone signed an investment agreement with Torrecid, under which, the Spanish group will lease three state-of-the-art warehouses stretching over an area of 20,000 sq ft.

This will make it the group’s first headquarters not only in the UAE but also in the GCC countries, a WAM report said.

SAIF Zone is securing its leadership as a global investment hub

Torrecid is a Globalised Multinational Business Group dedicated to providing products, services, solutions and future trends to the Ceramic and Glass Sector, The agreement is in line with SAIF Zone’s ability to attract foreign direct investments across strategic economic sectors, and also boosts its reputation as one of the fastest-growing free zones in the Middle East.

 Speaking on the occasion, Al Mazrouei said: “Torrecid’s decision to base its regional operations in Sharjah is yet another testament to the emirate’s good reputation, which has grown to become a regional and international hub for doing business. It also reflects global investors’ trust in the emirate and SAIF Zone in particular thanks to its unique environment, competitive services, facilities and above all the wise directives and vision of H.H. Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah.”

“Backed by a world-class infrastructure, SAIF Zone provides more than 2,000 modern warehouses that perfectly meet the needs and requirements of all investor in addition to offering competitive advantages and logistical services coupled with topnotch facilities that all serve as a magnet for foreign direct investment,” Al Mazrouei added.

“With Torrecid becoming a new investor in the free zone, we are sure it will help strengthen Sharjah’s position as a favoured destination and business centre for global and regional investments in the industrial sector,” he emphasised.

SAIF Zone, the oldest, largest and fastest-growing free trade zone in the Middle East, is famous for providing quality services in line with the forward-looking strategy of the UAE leadership, which has heavily invested in the country’s capabilities to transform it into a global business hub.

Shores up Concord Enviro

The SAIF Zone further secured its leadership as a global investment hub after concluding an investment deal with Concord Enviro FZE, an Indian company operating in the treatment and recycling of industrial wastewater and seawater desalination.

Under this agreement, the Indian company will lease additional 130,000-sq ft plots of land to set up new facilities to cope with the increasing demand of the local and regional markets for the latest industrial wastewater recycling products produced by the company in multiple sectors, including pharmaceutical industries, textiles, distillation industries, tanneries, steel industries, yeast, paints, dyes, cement, food and beverages, paper, electrical industries, and others.

The deal is yet another testament to the outstanding position of SAIF Zone as one of the region’s most important and competitive investment hubs with its outstanding success in attracting direct foreign investments.

 Commenting on the deal, Al Mazrouei said: “We, at SAIF Zone, attach special importance to such strategic investments due to its significance in the national plans and strategies,” underlining that Concord Enviro’s decision to expand its business at SAIF Zone clearly reflects the efforts being made to provide distinguished services to investors, stressing the Zone’s commitment to helping enhance the success and growth of such companies that provide sustainable solutions and preserve natural resources, which is a key pillar of the future of the UAE economy.   

Hamriyah Free Zone (HFZ)

Located adjacent to Hamriyah Port, one of the emirate’s three deepwater ports to the north of Sharjah City, and near the emirate of Ajman, which is completely surrounded by Sharjah and the sea. The port is the emirate’s main oil and gas terminal and HFZ, which hosts 6600 companies, is also dominated by hydrocarbons- and petrochemicals-related industries, as well as heavy industry more generally.

In addition to offering industrial and commercial plots of land, HFZA, the second-largest industrial-free zone in the UAE, provides advanced infrastructure and modern facilities to investors, especially in import and re-export to the world’s markets. Some other competitive advantages provided by HFZA are: a single-window operation; multiple tax exemptions; repatriation of capital and profits; full foreign ownership of the business, and quick access to regional and global markets.

HFZ is sub-divided into a zone for small and medium-sized enterprises (SMEs), known as Hamriyah SME Zone, a microbusiness zone (Hamriyah MB Zone) and a logistics zone (Hamriyah Logistics Village). Hamriyah SME Zone, which is 10m sq m in size, is in turn sub-divided into seven industry-themed areas, respectively focusing on oil and gas, petrochemicals, steel, timber, perfume, construction and maritime-related industries such as ship-building and repair.

New deals

Bee’ah, a UAE-based leader in integrated environment and waste management, said it has renewed its strategic partnership deal with HFZA, in a bid to provide integrated waste management services for the free zone community.

As per the deal, Bee’ah will provide solid and liquid waste collection services to the free zone community. The company already has an office in the Hamriyah Free Zone for direct coordination with the Environmental Health and Safety Department regarding waste management and collection.

This renewal has resulted in a fruitful collaboration and beneficial outcomes over the past four years. It underscores both Bee’ah and HFZA’s commitment to sustainable growth and environmental protection, stated Group CEO Khaled Al Huraimel at the signing ceremony.

Kanoo Shipping in HFZ

Kanoo Shipping, a member of the Kanoo Group and a major regional shipping agency, has opened a new port office in Hamriyah Free Zone adjacent to Hamriyah Port, a deepwater seaport and accompanying facilities located in Sharjah, UAE.

Hamriyah Port can accommodate very large and deep drafted vessels and its main harbour is designed for handling LPG, oil products, general cargo, heavy-duty cargo, cement, grain and forest products. LPG loading terminal is currently operated by Petrofac, a leading international service provider to the energy industry. The inner harbour is located in the north part of the Hamriyah Free Zone. Offshore of Hamriyah, there is an SBM operated by BP, handling crude and condensate cargo.

Hamriyah Port is a few kilometres from Sharjah proper and industrial areas. Investors are able to save time and cost as the port is adjacent to Hamriyah Free Zone. It also has easy access to linking all seven emirates and provides connections to the adjacent Gulf States closer to the Straits of Hormuz.

With this new office of Kanoo Shipping, it said that their Husbandry, Crew Care, Port and Cargo Operations services to clients are more robust than ever as port authorities, Customs, Immigration and other government agencies are also located in the same vicinity.

Medtra unveils plans

HFZA signed an investment agreement with Medtra, one of the world’s major companies in the production and manufacturing of healthcare equipment and products, to expand its operations in the Mena markets.

 Under this agreement, Medtra, which operates in 40 countries, is set to invest some AED100 million ($27.2 million) in HFZA through the construction of state-of-the-art manufacturing facilities, using the latest technologies and innovations.

Headquartered in Saudi Arabia since 2004, Medtra is serving Mena’s healthcare sectors, along with food, agriculture, farming, poultry, hospitality, oil and gas, as well as industrial sectors with more than 3,000 high-quality products, while the company has been serving the UAE market since 2013.

Commenting on the Medtra deal, Al Mazrouei said: “This is yet another testament to Sharjah’s outstanding position as a global business destination. Meanwhile, choosing Sharjah as a new headquarters for the company, amid rising demand for healthcare and hygiene products due to the Covid-19 pandemic, clearly reflects the robustness and reputation of the emirate’s business environment wat the global level in these challenging times.”

 “In today’s fast-paced environment, we see a lot of global and multidisciplinary companies opt for Sharjah to kick-start their operations in the region. At HFZA, we support the companies by offering fantastic benefits and facilities that help them achieve their economic aspirations,” noted Al Mazrouei.

In addition to offering industrial and commercial plots of land, HFZA, the second-largest industrial-free zone in the UAE, provides advanced infrastructure and modern facilities that strengthen external expansion plans for investors, especially with importing and re-exporting to the world’s markets, he added.

Sharjah Food Park

 Meanwhile, HFZ’s is promoting its first and largest integrated facility dedicated to the food industry Sharjah Food Park. Extending over an area of 11 million sq ft, Sharjah Food Park is home to 1,700 companies operating in food manufacturing, preservation, packaging, re-packaging, import, and export to markets around the globe.

 Starting from 2,500 sq m, Sharjah Food Park offers investors and companies various plots of land to operate their businesses, as well as all food licences, with state-of-the-art logistics, sophisticated warehouses, and modern office spaces.

Al Mazrouei said: “It’s not surprising that HFZA in general and Sharjah Food Park, in particular, are home to the world’s top food and beverage companies, thanks to our outstanding facilities, on-site customs services, and state-of-the-art logistics, including modern warehouses that are equipped with advance cooling systems for ideal food preservation.”

 Al Mazrouei made it clear the Covid-19 pandemic has proven the importance of food security, where logistics and an integrated supply chain are two major components of maintaining the supply chain. From this perspective, we, at HFZA, have been keen to establish a world-class transport network along with storage facilities proximate to airports and ports.