Sharjah 13th of May 2009: Under the patronage of H.H. Sheikh Dr Sultan Bin Mohammed Al Qassimi, Member of the Supreme Council and Ruler of Sharjah, the Special Economic Zones Forum was held in Sharjah's Radisson SAS Hotel on 11 May 2009.

The Forum was organized by the Sharjah Economic Development Department (SEDD) and Al-Iktissad Wal Aamal Group, with over 350 participants representing 15 countries taking part in the two day event, including government ministers and policy makers, officials in charge of the most successful economic zones in the region, investors and industrialists, and representatives of UAE, Arab and international organizations, financial institutions and development authorities and funds.

Factors of success, and development of special economic zones were discussed in the session, with the focus on selecting the appropriate model of economic zone that can be applied in a particular country and ideally fits its economic needs, geographical location, economic competitiveness, existing infrastructure, telecommunication facilities and transport network. Other vital factors of success highlighted included the necessity of providing an investor-friendly climate, flexible legal framework, simple procedures and a fair tax system, in addition to the provision of funding resources and qualified human resources with competitive costs.

Sharjah's investor-friendly climate was presented at the forum, with emphasis on the facilities and incentives offered to investors, and how to further improve the support extended to investors. The forum focused on the significant contribution of Sharjah's industrial sector to the economy of the emirate, as it accounts for 48 percent of the Gross Domestic Product (GDP). The successful experiences of some of the region's most prominent special economic zones were presented, including the economic and industrial zones in the UAE, KSA, Jordan, Tunis and Oman.

Speakers focused on the role of industrial sector in economic growth and the existing openness in global economies and their trend to move towards new and untraditional markets.

The global financial crisis and its potential implications for special economic zones was thoroughly analyzed in a special session of the forum, where such issues as funding resources, direction of foreign investment flow, international trade movement, protectionism and export restriction were examined.

Speakers underlined the necessity of benefiting from the ongoing economic crisis, and of being prepared to face the coming period. This can be achieved when the Arab countries set strategies that focus on improving the investment climate, developing infrastructure, training human resources, establishing alliances between special economic zones, adopting common standards, and simplifying procedures.

The forum discussed the positive development of foreign investment in Arab countries and the active role of special economic zones in providing the ideal investment climate for foreign investors. Speakers highlighted the UAE's successful experience in establishing 20 special economic zones. The country's economic diversification policy, which aims to achieve steady economic growth to ensure sustainability of non-oil resources based on librated economy, modern infrastructure and political stability, was highlighted, with special focus on its significant contribution to making the UAE a destination of choice for direct foreign investment, which reached an estimated $35 billion in 2008.  

A number of economic leaders were presented with awards for outstanding performance in their fields. The 'Al-Iktissad Wal Aamal and Special Economic Zones Forum Award' in the achievement category was presented to H.E. Abdulla Juma Al-Sari, Chairman of FAL Group, and to H.E. Mohammed Abdullah Al Omran, Chairman of Al Omran Group. The Royal Commission for Jubail and Yanbu was presented with an award in recognition of its outstanding contribution to making the KSA a major petrochemicals manufacturer. The 'Al-Iktissad Wal Aamal and Special Economic Zones Forum Award' in the investment in Sharjah category was presented to H.E. Abdullah Al Shakrah, Chairman of Al Hanoo Holding, the leading real estate and industrial investment firm in Sharjah.

Recommendations arising from the forum included:

  • Setting the special economic zones as main part of countries' growth strategies.

  • Improving the investment climate in the region; creating and regularly reviewing incentives for investors; simplifying procedures; and adopting a fair tax system.

  • Creating positive interaction between investors in the special economic zones and the insurance and banking sectors.

  • Establishing modern infrastructure and staying abreast of the latest developments and trends.

  • Relying on local abilities and available resources.

  • Selecting a strategic geographical location for the special economic zones and taking easy access to logistic facilities into consideration.

  • Giving tax exemption for products manufactured in special free zones, solving the certificate of origin problem.

  • Adopting a transparency system in the special economic zones.

  • Implementing long-term planning based on demand and supply study, and guiding investors to feasible investment opportunities.

  • Coordinating and integrating the activities of special economic zones.

  • Determining appropriate follow up and support mechanisms to help investors in marketing their products in the local markets.

  • Providing training courses for human resources and offering the necessary incentives to attract local manpower.

  • Focusing on competitive industries that rely on local raw materials.

  • Giving special interest to environmental protection.

  • Simplifying procedures and adopting a 'one-stop-shop' system.

  • Activating public-private partnership and preparing for the coming period.

  • Supporting the industrial sectors and the special economic zones, and reducing the operational costs.

  • Implementing continuous follow up with investors.

  • Facilitating visas between Arab countries.

  • Securing legal protection for labors.

  • Benefiting from the crisis and attracting Arab capital.

  • Supporting small and medium enterprises (SMEs).

  • Setting up a crisis alert system under the custody of the Arab Monetary Fund.

  • Establishing bailout and economic stimulus systems.

  • Establishing a special economic zones association.

  • Innovating smart incentives to encourage certain types of investments, particularly in the technological sector.

  • Launching the theme of research and development and establishing innovative business incubator.

  • Solving the problem of certificates of origin.  

-Ends-

For further information, please contact:
Sharjah Economic Development Department
Media Department
Tel: 00971 6 5122162
Cell: 00971 50 8611198

Farah Mahmoud
SAHARA PR
Tel: +971 4 3298996 
Fax: +971 4 3298995
E-mail: farah@saharagcc.com

© Press Release 2009