DAFZ Woos Japanese Investors

by Lorys Charalambous, Tax-News.com, Cyprus

08 June 2010

During a recent trade mission to Japan, Japanese investors were invited to establish operations within the Dubai Airport Freezone (DAFZ) by its Director General, Mohammed Al Zarooni. The DAFZ has recently been recognized as the second best free zone, in terms of its low tax offerings, in the world.

Speaking at a meeting with the Japanese Consul General, Takashi Ashiki, Al Zarooni said: “Dubai Airport Freezone is host to a large number of Japanese companies who are taking advantage of its strategic location, tax free benefits and superb infrastructure and modern management practices that adhere to international standards.”

“These Japanese companies contribute greatly to the economy of Dubai and the United Arab Emirates with their technological know-how and best practices,” he added.

Al Zarooni noted that the Japanese companies operating in Dubai Airport Freezone are quality companies that work in many sophisticated industrial, services and business fields.

Some examples of successful Japanese companies currently operating in the Freezone, Al Zarooni said, are: NSK Middle East, Sumitomo Rubber Middle East FZE, Isuzu Motors Limited, the Yokohama Rubber Company Limited, Mitsubishi Corporation, Isuzu Business Division, Kawasaki Heavy Industries Middle East, Nohmi Middle East, Idemitsu Lube Middle East & Africa FZE, and Toyota Tsusho Corporation.

In response, Ashiki said: "We are here to work with the UAE organizations to encourage investment in the United Arab Emirates and search for good business opportunities for Japanese companies wishing to enter the Middle East markets."

"We are certain that the Dubai Airport Freezone is one of the projects where many Japanese companies would prefer to operate because of the privileges that meet their needs and would further future plans," he added.

The Free Zone’s facilities and incentives have to-date attracted over 1,500 companies, a number that is set to increase dramatically in the build-up to Al Maktoum Airport’s full opening. The Free Zone offers a number of incentives to prospective investors, including: exemption from corporate income tax, import and export taxes, and personal income taxes; no customs duties; no restrictions on foreign ownership; no currency restrictions; and no restrictions or taxes on the repatriation of capital and profits.

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