About 600 new companies have registered with the Jebel Ali Free Zone Authority under the Offshore Companies Regulations enacted in May last year, a top government official said yesterday.
These are in addition to the 3,860 companies that are in operation at the free zone.
Sultan Ahmad Bin Sulayem, executive chairman of the Ports, Customs and Free Zones Corp (PCFC), said Dubai will not relax the regulations on accounting, auditing and reporting criteria.
"We are very particular about the offshore regulations. Had we kept it as open as many others, we would probably have had more than a thousand instead of the 600. But that's not the prime objective. We want them to operate as per our laws."
The regulation was designed to attract increased offshore investments to Dubai. The emirate otherwise has been banking on the various free zone clusters to attract investment.
Dr Khalid Maniar, founder partner of AGN-MAK, said: "Had the processes been simplified and relaxed, like those with the British Virgin Islands, Cayman Islands or Isle of Man, offshore investment in Jebel Ali would have been higher."
One of the hindrances is the bank operation rule for offshore companies.
Bin Sulayem was speaking after inaugurating the Chalhoub Group's Dh36.75 million corporate headquarters at the Jebel Ali Free Zone. The group, which represents a number of luxury lifestyle brands in the UAE, and has more than 30 companies and over 2,500 employees, played an instrumental role in bringing in Saks Fifth Avenue to Dubai.
Patrick M. Chalhoub, managing director of the Group, said: "Over the last 14 years, we have improved our annual turnover by at least ten times. With rapid development, a strong boom is taking place in the region, especially in Dubai, and we expect this to continue."
"Most people are into organised retailing these days and high-end lifestyle products have witnessed a strong growth in consumption thanks to the growth in Dubai's tourism industry," Chalhoub added.
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