Free Trade
Many people asked if Dubai really needed another free zone when work on the Dubai Airport Free Zone began. Zac Sharpe found out why this 1.2 million square metre project will stand out from the rest
From Chanel to Boeing, some of the most instantly recognisable names in the corporate world have singled out the Dubai Airport Free Zone as the ideal hub for their Middle East operations. Covering more than 1.2 million square metres at the Dubai International Airport, the opening of the free zone will represent the culmination of a massive infrastructure and engineering project. And plans for the next decade of the Dubai Civil Aviation Department project allow for the unique business district to swell to 2 million square metres.
While the free zone will operate according the same principles and laws governing the Jebel Ali Free Zone, the location and infrastructure of the site will ensure it attracts an entirely different type of corporate citizen.
Although the exact date of a grand opening has yet to be announced, the red carpet is expected to be rolled out in the first quarter of the new year. Mohammed Al Zarouni, director of administration and research of Dubai Airport Free Zone, acknowledged there was one recurring question he encountered in any discussion of the project.
"Why do we need another free zone?" "Jebel Ali is one of the biggest in the world but the nature of business in an airport is completely different. Jebel Ali caters for products moving by sea whereas this will service the needs of businesses which require transportation by air," said Al Zarouni.
"These differences are highlighted when you look at the 37 companies which have signed up so far. They tend to be low weight, high value products - gold, electronics, that sort of thing," he explained. The exception to the rule of low weight would be aviation. Several companies involved in the supply and servicing of aviation equipment and spare parts are keen to call Dubai Airport Free Zone home.
"We are in no way even competing with Jebel Ali. The companies moving to the airport are not moving from there to here. They are coming from outside. Why would they do that now all of a sudden after ten years. It's because the airport is perfectly located for their particular business," stressed Al Zarouni.
Jebel Ali aside, the airport free zone differed markedly from any other in the world, he added. "Most of the other similar operations around the world were created in response to a perceived need to boost opportunities for local employment and as such were very labour intensive. But in the UAE's case, employment is not an issue allowing us to focus on high-tech industry and the skilled workers accompanying these fields," he said.
The common thread which links the multifarious group of companies either moving or already moved to the airport free zone is technology. "Whether its light industry, distribution, assembly or re-export, the business must be involved in advanced technology otherwise it is simply not accepted. For example, there is one company which manufactures the latest disc technology, DVDs, using the most advanced technology from Holland," said Al Zarouni.
"This is the type of industry we want to bring not only to the free zone but also to the UAE". There are no stipulations enforcing the host of multi-nationals to use national labour. But the presence of such a quality manufacturing base can only serve as an incentive for national graduates looking to apply their skills in science, management and business beyond the sphere of local government.
The provision of 24 warehouses, millions of square meters of land, feeder and ring roads, utility services, customs gatehouses, cargo handling facilities, reception buildings, fencing and landscaped surrounds does not come cheap.
To be precise, it costs about Dh 180 million. But the budget forecasts for the operation project the total outlay will be recouped within just eight years.
Contributing to the cost savings by virtue of its fast-tracked construction work completed by Al Habtoor Engineering Enterprises (HEE). Contracts worth Dh107 million to construct the administration area facilities on the east and west wings, the entrance feature gate, customer gatehouse and central chiller plant were scheduled for completion over 12 months.
"We did it in ten," said QA manager Richard Corish. "Technically it wasn't all that demanding but we had work day and night to meet the client's request to finish the work two months ahead of schedule. It was a definite test for HEE and proved to be an outstanding accomplishment," said Corish.
The layout of the area appropriately resembles an aeroplane, divided into concentric east and west wings with the central zone forming the body of the plane.
It is situated adjacent to the Al Towar Road to the north of the airport. The east and west wings occupy the majority of the site and accommodate light industrial units (LIUs) and serviced plots. A main ring road ensures easy circulation throughout the two wings. All of the LIUs are grouped inside the central ring road with the bulk of the service plots on the outer periphery of the ring.
The LIUs are grouped in rows of four to eight and are characterised by their mirrored appearance both front and back. Offices are situated in the front and served by a vehicular road with parking for employees and visitors. Service access for loading and unloading is provided from the rear of the units.
Service plots are also directly accessible from the ring road but also from landscaped cul-de-sacs. Each serviced plot has its own access gate, perimeter fence, parking and loading and unloading bays. For ease of transport, cargo handling facilities have been allocated large plots adjacent to the airport aprons. A central pedestrian spine threads through the LIUs and serviced plots from east to west in both wings of the free zone providing access to amenity areas. Landscaped, it will provide a welcome relief to the overall character of the industrial development.
Three amenity areas are provided, one in the west wing and two in the larger east wing. Each will contain a mosque and a small canteen set in a landscaped open space and acting as a focal point for the pedestrian spine.