The UAE’s Khalifa Industrial Zone Abu Dhabi (Kizad) and HSBC Tuesday signed a Memorandum of Understanding (MOU) to identify potential tenants and establish them in the industrial zone.
As it also covers opportunities to offer financing and banking services to Kizad tenants, the agreement represents a commitment from HSBC and Kizad to work together to bring in foreign investment in support of the economic diversification and industrialisation objectives envisaged under Abu Dhabi Economic Vision 2030.
The Abu Dhabi Economic Vision 2030 aims to achieve effective economic transformation of Abu Dhabi Emirate’s economic base and bring about global integration and enduring benefits to all.
Kizad, launched late last year by Abu Dhabi Ports Company (ADPC), covers 417 sq km, at Taweelah, half way between Abu Dhabi and Dubai.
Kizad, which offers freezone and non-freezone options, aims to attract investors to industrial clusters defined in line with the 2020 vision. These include aluminium, steel, engineered metal products, petrochemicals, pharmaceuticals, paper, print and packaging, food and trade and logistics.
Free zones, which are sometimes also called free economic zone, duty free zone, tax free zone, trade free zone or free trade zone, in the UAE allow 100 percent foreign ownership and have no taxes – usually guaranteed for 15 or 50 years.
Each free zone has its own specific requirements regarding minimum office/warehouse space and permitted activities.
The companies, which are outside the free zones, require a local sponsor and allow maximum 49 percent of foreign ownership.