Logistics News Middle East caught up with HE Saud Salim Al Mazrouei, Director of Hamriyah Free Zone Authority (HFZA), to discuss how the free zone stands out.
- Tell us about your vision and goals for HFZA
Experts agree that free zones play a vital role in supporting the country’s economic development. From strengthening the performance of our national economy to attracting foreign investment, UAE free zones have been turned into incubators of prosperity for local and global companies.
Since its inception in 1995, Hamriyah Free Zone is the second largest free zone in the UAE. It is has grown to become a leading hub for providing logistical services thanks to its strategic location, which facilitates the trading of materials and end products between Asia, Europe and Africa.
HFZA seeks to build long-term relationships with its customers and strengthen its partnerships with global investors by providing a world-class infrastructure offering high quality, value-added services along with unmatched incentives that help businesses take advantage of huge investment opportunities being made available in the free zone.
- How has COVID-19 affected your operations in the Free Zone?
Covid-19 has left grave impact on the global economy as a whole and no sector was excluded. This crisis has created unprecedented challenges. However, seeing the glass half full, this challenge has highlighted an important fact, which is the leading role that free zones can play in ensuring the supply chain remains functional for the business ecosystem.
This is what we have been doing at HFZA through strengthening our logistical networks with global markets to meet the increasing demand for goods and commodities, be it food, medical supplies or even basic commodities.
We are also keen to provide exceptional facilities and additional competitive advantages that helped smoothen the work of businesses, ensured their continuity, and connection with global partners via an interconnected commercial, industrial and investment network.
- Did HFZA offer any exemptions to companies due to COVID-19?
It goes without saying that enhancing the competitiveness of companies operating in the free zone is an unwavering priority and one of the most important pillars of our vision at Hamriyah Free Zone. Given the tough conditions the world is going through, it has become necessary now more than ever to develop new competitive solutions for our customers to help them survive, grow and flourish despite what we are experiencing.
We have been one of the first entities to respond to COVID-19 and took swift actions to mitigate its negative economic repercussions on operating companies. Besides offering a package of incentives and initiatives, we also exempted all shipping companies and customs clearance agents from bank guarantees required to carry out their activities.
We also exempted businesses from inspection fees, fines for late renewal of commercial licenses, visa fines, along with offering a 50% discount on the fees for transferring shares of companies, and exempting all new companies from license fees.
- What are the advantages being offered by HFZA to attract companies?
The Covid-19 pandemic has proved a significant fact that free zones are the best option for investors looking to expand their businesses and launch into a world of promising opportunities. Over the past years, the Hamriyah Free Zone has been able to attract more than 6,500 companies from 165 countries around the world, operating in various sectors.
In addition to its advanced infrastructure and modern facilities that support external expansion plans, especially in importing and re-exporting sectors, HFZA provides many competitive advantages, most notably a single window operations that strengthens performance efficiency and facilitates business practice, coupled with multiple tax exemptions, 100% repatriation of capital and profits, full foreign ownership of businesses, and easy access to regional and international markets, as well as a 14-meter deep water port where the Hamriyah Port is located.
The port was specifically designed to receive giant ships dedicated to petrochemicals and various goods and features berths dedicated to unloading freight loads, in addition to 7 meters deep inner harbour to accommodate small and medium-sized ships. This is why HFZA has become a major destination for marine transportation and shipping from Sharjah to the various global markets.
What are your expectations after 2020?
Being a key player within the vital services sectors of the UAE economy, we reassure our customers that we will work on every single effort to guarantee the continuity of their businesses during such turbulent and unstable times.
We will do whatever it takes to provide companies with further commercial and investment opportunities that ensure the sustainability of their businesses, even post Covid-19, so they can benefit from more value-added and, comprehensive services at a lower cost.
Existing or upcoming businesses will certainly find our innovative services helpful and will get them back right on track within an investor-friendly environment conducive to business entry, expansion, and international competition despite all challenges.