World Free Zone summit calls for increased synergy between free zones

His Highness Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, opens prestigious summit – his first official event since becoming ruler

“Total value of FDI through UAE free zones have touched AED268 billion,” says HE Sheikha Lubna bint Khalid bin Sultan Al Qasimi, UAE Foreign Trade Minister

More than 200 delegates from free zones and officials from government departments across the world attend global event

The two-day World Free Zone Convention 2010 opened at Ras Al Khaimah’s Al Hamra Convention Centre today with a clarion call for increased cooperation between the world’s free zones to ultimately benefit their clients and remain profitable.

The 10th edition of this industry event, hosted by Ras Al Khaimah Free Trade Zone (RAK FTZ), was inaugurated by His Highness Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, in his first-ever official event since becoming the emirate’s ruler following the death last week of his father, His Highness Sheikh Saqr bin Mohammed Al Qasimi.

The World Free Zone Convention 2010 is the first of its kind to be held in the Middle East and hosts over 200 international and regional delegates reviewing the opportunities ahead for free zones worldwide in the current economic climate.

In his message to the convention, H.H. Sheikh Saud said: “We welcome initiatives such as the World Free Zone Convention that further underline Ras Al Khaimah’s profile as an important free zone innovator on an international level. The convention comes at an important time when our economic policies are beginning to deliver success and leading to strategic partnerships with key players across the world.”

Held under the patronage of H.H. Sheikh Saud, the prestigious two-day conference and exhibition featured a keynote address by Her Excellency Sheikha Lubna bint Khalid bin Sultan Al Qasimi, UAE Minister for Foreign Trade, is hosted by His Highness Sheikh Faisal bin Saqr Al Qasimi, Chairman and Mr. Oussama El Omari, CEO of RAK FTZ and attended by Mr. Graham Mather, World Free Zone Convention Chairman and President of European Policy Forum, London & Brussels and other international dignitaries.

In welcoming the delegates, Sheikh Faisal and El Omari each paid tribute to the leadership of Ras Al Khaimah, acknowledging the emirate’s economic and social success spearheaded by the ambitious policies, begun under the farsighted vision of H.H. Sheikh Saqr and continued now by the new ruler, H.H. Sheikh Saud, which have now positioned Ras Al Khaimah as a powerful international business hub synonymous with Progress, Potential and Purpose.

Continuing his address, Oussama El Omari, Chief Executive Officer of Ras Al Khaimah Free Trade Zone, touched upon success factors for free zones urging his peers to explore building relationships with their counterparts in other countries in order to ensure expansion and increased market share.

“Many decision-makers in supra-national organisations such as the World Trade Organisation, UNIDO, UNICTAD, OECD and the European Commission make the superficial argument that when tariffs disappear economic incentives for free zones will die and zones will dissolve,” El Omari said. “They simply do not understand yet that zones have transformed themselves into leading service centres for attracting foreign investment in the world and are greatly needed.”

In her keynote address, Sheikha Lubna pointed out to the significant contribution made to the economy by the 36 free zones operating in the UAE. “The UAE’s Free Zone model has proved to be an excellent catalyst for development in line with our vision for diversified economic growth. Our free zones are very unique in that they were developed in accordance with an economic development strategy that puts economic diversification and creating a suitable economic and business climate as a top priority,” she said.

“Moreover, the total value of Foreign Direct Investments that have flowed into the United Arab Emirates (through free zones) has reached approximately USD 73 Billion (AED 268 billion), making us the second most FDI attractive country in the Arab World, according to the UN Conference on Trade and Development [UNCTAD],” Sheikha Lubna said.

The minister added that the UAE is ranked 14th globally in the number of new Foreign Direct Investment (FDI) projects in 2009, accounting for 230 projects or 1.7 per cent of the overall global share of new FDIs, as per the UNCTAD report. “We have been able to successfully grow our projects by 123 per cent in just a span of five years,” she said.

“Free zones in the UAE play a very important role in international trade and re-export activities. The UAE is now one of the top commercial centers in the world and this is further strengthening the competitiveness of its investors as they enter new markets and expand their commercial operations,” Sheikha Lubna said.

The convention also featured Graham Mather, Chairman, World Free Zone Convention Chairman and President of European Policy Forum, London & Brussels, along with a host of international dignitaries and important speakers from various organisations around the world.

During the convention, free zone representatives will examine ways to further attract the small and medium business (SMB) sector to operate within their purview. “We believe that the global SMB sector is extremely under-served and constantly explores cost-effective solutions to launch business operations. Therefore, it is this important segment that will continue to remain the focus of our dialogue during the convention,” said El Omari.

RAK FTZ is the Platinum Sponsor of the two-day conference and exhibition, being held under the theme ‘Gathering Global Support For Free Zone Industry’ and the slogan ‘Harnessing economic zones worldwide to the cause of economic recovery, dynamic growth and strengthened world trade.’

The Gold Sponsors for the event are HSBC, Morrison Menon Chartered Accountants, RAK Chamber of Commerce, supported by Bronze Sponsors Dolphin RAK Duty Free, and Business Action to Stop Counterfeiting and Piracy (BASCAP), among others.

Details about the convention and its agenda are available on www.wfzc2010.com.