ABU DHABI — The Abu Dhabi government has enacted a landmark law to attract foreign direct investment (FDI) into the emirate by allowing 100 per cent ownership to foreign investors in the Industrial City of Abu Dhabi (ICAD) and about a dozen sector-specific industrial clusters to come up in a phased manner in the next three to four years, said Shaikh Hamed bin Zayed Al Nahyan, chairman, Abu Dhabi Economic and Planning Department (ADEPD).

"A law has been enacted that will give regulatory powers to Higher Corporation for Specialised Industrial Zones (HCSEZ) to deliver on Abu Dhabi’s new economic diversification drive by developing a new economic model of public private partnership (PPP), granting companies 100 per cent ownership, issue licences and permits, provide tax exemptions, issue customs duty deferrals, carry out municipality functions and provide utility services," Shaikh Hamed told a big gathering of investors, diplomats, government officials.

He was speaking at the launch of ICAD-2 project which will cost Dh400 million and be ready by the summer of year 2007.

Al Jaber Group has won the competitive bidding against ten bidders to construct ICAD-2 along with making investment in the project, 75 per cent of whose plots have already been leased out even before its official launch.

Shaikh Hamed said HCSEZ is in the process of creating economic zones for basic metals, building products and construction materials, oil and gas services, agricultural and food services, paper and wood products, automotive industries, logistics services, high-tech industries, financial services, pharmaceuticals, medical sector and chemical and petrochemical industries.

He said along with Adnoc and ADIA, HCSEZ will become a third new engine that will drive economic development and diversification of Abu Dhabi.

Shaikh Hamed said Abu Dhabi realises that oil alone will not take the emirate to the next level of socio-economic development, so the choice was to expand its industry which can benefit from abundant energy, capital and good infrastructure.

"Today, Abu Dhabi 's industrial base is composed of individual companies in fragmented industries. But now, our goal is to create high value industry clusters and transform the emirate into an industrial, services and logistics hub," Shaikh Hamed said.

HCSEZ was established in June 2004 to promote economic investment in Abu Dhabi and serves as the key government entity in developing and diversifying the economy of the emirate through the creation and promotion of specialised economic zones.

Shaik Hamed said: "We aim to develop new and strategically important sectors by having HCSEZ as the main gate to all aspects of economic development. This will be achieved by ensuring that HCSEZ provides integrated state-of-the-art infrastructure and services through specialised economic zones that offer investors a business-friendly environment. Our objective is to attract and promote industries that are knowledge and capital intensive."

Courtesy: Khaleej Times