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Umm Al Qaiwain to establish Industrial City
Manufacturing can be a true catalyst for growth, says expert
February 17, 2014 4:28 by kippreport
His Highness Sheikh Saud bin Rashid Al Mu’alla, Member of the Supreme Council of the UAE and Ruler of Umm Al Qaiwain (UAQ), has issued a law to establish an industrial city in the emirate, according to the country’s national news agency, WAM.
“It’s great to see the creation of an industrial zone in UAQ, which could become a focal point for large-scale economic development in the emirate,” says Thomas Bradtke, partner and managing director at The Boston Consulting Group. “As many other places have shown, manufacturing can be a true catalyst for growth, creating well-paid jobs and many positive ripple effects.”
In line with the UAE Vision 2021, which seeks to promote economic diversification, it has stepped up its efforts on industrialisation through the creation of industrial zones across the nation, the latest being the Umm Al Qaiwain Industrial City.
The establishment of this zone “aims to keep pace with the steady growth that is being witnessed, particularly in UAQ and the UAE in general, in both economic and industrial fields,” reveals an official decree. It also aspires to make UAQ a hub for regional and international operations by attracting companies to the emirate.
While the government has complete authority on managing affairs within the city, UAQ’s industrial zone will enjoy financial and administrative independence, as well as full legal capacity when it comes to signing contracts and carrying out other transactions.
While the announcement is welcome, Bradtke adds: “To ensure long-term success, UAQ will need to come up with a distinct value proposition for its industrial zone in order to differentiate itself versus competing zones in the UAE and across the GCC region. The space is getting increasingly crowded with many industrial zones (on-site or planned) and differentiation will be key to attract a critical mass of right investors.”
The Khalifa Industrial Zone Abu Dhabi (Kizad), another leading industrial zone in the UAE, will grow to become one of the largest of its kind in the world in the next two decades. It already houses the world’s largest aluminum smelter, Emirates Aluminum.
As per the official decree, the new industrial city will have a chairman and CEO. The former will be appointed based on a declaration issued by His Highness, while the latter will be appointed as per the decision made by the chairman.