ABU DHABI - Abu Dhabi plans to set up its first free zone for the manufacturing sector by the end of next year as the emirate steps up efforts to lure foreign direct investment.The chief executive of the emirate's Higher Corporation for Special Economic Zones (Zones Corp), which is responsible for developing and managing industrial areas, said on Tuesday the free zone will cater mainly to small-and medium-sized businesses.
“We are studying it… we are targeting by the end of next year,” Mohammed al-Qamzi told reporters on the sidelines of the Abu Dhabi Conference.
Neighbouring Dubai has developed a network of free trade zones over the last several years with the biggest located in Jebel Ali.
The free trade zones in the country allow tax benefits, 100 percent foreign ownership and less red tape to companies, while onshore companies must have a minimum of 51 percent UAE ownership.
At present Abu Dhabi airport and clean energy firm Masdar operate in free trade zones in the UAE capital.
There are about 3,000 industrial manufacturing facilities in Abu Dhabi at present.
Qamzi said a location for the industrial free zone has not been decided yet.
Zones Corp is developing industrial areas in six phases over a period of next several years. The first two have been completed and work on the third phase is under way, while the remaining three are under study, he added.