Top Indian cos plan production units in UAE free trade zone

MUMBAI: Leading Indian business houses including Reliance Industries (RIL), the Tatas and the Aditya Birla group are planning to set up production units and service centres at the Ras Al Khaimah (RAK) free trade zone in the UAE. Zone chairman Faisal Bin Saqr Al Qassimi, and chief executive officer Oussama El Omari are in Mumbai to meet the Indian businessmen including Mukesh Ambani.

“We are planning to attract a $1.5-billion investment from India, in five years. We already had discussions with many Indian business houses in automobile, petro-chemical, pharma and textile sectors, and they have evinced keen interest in the zone,” Mr Al Qassimi told ET.

For starting the production unit in the zone, Tata Motors is expected to form joint venture with Turkey-based Isotlar group. Tata Motors have an existing tie-up with Mesin, an Isotlar Group company, for marketing and after sale service for Tata vehicles in Turkey. RIL is planning a petrochemical plant in the zone.

Top executives of Infosys, Mahindra & Mahindra, Ranbaxy, Cipla and ICICI are also meeting Mr Al Qassimi. “ICICI had already opened a service centre at the zone. Birla group has an engineering institute, where over 500 students are studying. Recently, Ashok Leyland had signed agreement with the RAK zone to open a production centre. Indian investors are doing 25% of the trade in the zone every year, which is $400 million,” said Mr El Omari.

“The specialities of the zone include political safety, zero corporate and income taxes, competitive labour, low-cost living and easy road, sea and air access. For the last five years, the zone has registered a 100% growth. We are planning to increase the pace of growth in the coming years with the help of Indian majors,” added Mr Al Qassimi. Now, telecom and information technology companies are more interested in joining the zone. Global majors in IT are also in talks and some of them have agreed to open development centres. there.