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UAE keen on helping free zones flourish: minister

Xinhua, May 10, 2016 Adjust font size:

The United Arab Emirates is committed to supporting local and international efforts to reform and enhance existing regulatory, economic and business mechanisms to help free zones thrive, UAE Minister of Economy Sultan Al-Mansouri said on Tuesday.

Speaking at the opening of the second Free Zones Economic Outlook International Conference of the World Free Zones Organization (FZO) Congress, the minister said the over 40 free zones in the UAE account for over 30 percent of the country's non-oil trade and have been instrumental in the diversification of the national economy.

On a global level, free zones in any country "can facilitate the participation of countries in such global value chains, giving access to new markets," said Al-Mansouri.

The Emirati minister went on to say that the fact that the number of members in the World FZO was growing at a rapid pace gives proof that governments across the globe identified the free zone with zero or little taxes and no customs as an important instrument to spur domestic and international trade.

"World FZO today boasts 189 members from nearly 50 countries -- a far cry from its 14 founding associates and a testimony to its growing role as a vital voice for the international free zone community," he said.

He urged the governments to remove roadblocks for existing and upcoming free zones.

"Free zones need an enabling environment for their effective implementation and management and that is why policies matter," said Al-Mansouri.

"Governments must take the lead by introducing effective legislation and measures to help the private sector adjust to this paradigm shift," he added.

In 2015, the UAE's total trade via its free zones stood at 497.2 billion dirham (135.5 billion dollar), representing a 35.2 per cent growth rate over 2011's 367.7 billion dirham (100.20 billion dollar) figure, he said.

The three biggest Dubai free zones Dubai Multi Commodities Center, Jebel Ali Free Port Zone and the Dubai International Financial Center have attracted thousands of companies across all continents, among them many of the Fortune 500 firms, which set up a branch in the UAE in order to benefit from growing trade relations between Asia, Africa and Europe and the Americas.

Only 29 percent of the UAE's gross domestic product is based on oil, making the Gulf Arab state the second most diversified economy behind in the Middle East after Iran. Endit