Sharjah Airport Free-Zone

Sharjah is the industrial heartland of the UAE, accounting for more then 40% of the country's industrial GDP. Its geographic location has led to a unique integration of land, sea and air links. This in turn offers unbeatable logistical, warehousing and distribution advantages. The only emirate with seaports on the Arabian Gulf and the Indian Ocean, Sharjah has carved a niche in the sea-air traffic sector, experiencing growth rates of more than 50% in the last few years.

Sharjah Airport International Free Zone (SAIF-Zone) and the Airport have been instrumental in helping Sharjah's economy scale new peaks. SAIF-Zone is the fastest growing airport free zone in the region, while the international airport has gained an enviable reputation as a leading cargo hub.

Speed, reliability and cost effectiveness have been the cornerstones of Sharjah's industrial policy. A stable government, proactive policies, solid industrial base and an attractive incentives package have drawn a very high proportion of foreign investments into Sharjah in recent years.

Sharjah International Airport

When in 1932, Imperial Airways (known today as British Airways) built an airfield at Sharjah, it was merely a stopover for planes en route to India and Australia. Much later in 1977, Sharjah International Airport opened as the first category II airport in the Arabian Gulf with an annual capacity of two million passengers.

In 1980, two purpose built terminals for cargo came into being along with aprons to park six DC8 cargo planes. This was further expanded in 1995 with four additional aircraft parking bays and an additional cargo shed. This was also the year when the Sharjah Airport International Free Zone came into existence.

It is the only major airport of the region dealing with charter operations and it has created a niche as one of the largest cargo hubs in the entire region. Having registered a 10-fold rise in volume, it handles more export volumes than any other airport in the region. Its rapid growth and commitment to providing cargo facilities to international standards led to the establishment of a major hub by Lufthansa Cargo. In 1998, it was awarded the best International Air Cargo Award instituted by the European Institute For Transport Management (EITM) and for two consecutive years (1999 and 2000) was selected as the Best Cargo Hub for Middle East and North Africa.

SAIF-Zone Departments

The operations in SAIF-Zone are handled by various departments. These ensure smooth handling of paperwork and documentation required to set up a business within its premises.
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Business Incentives : SAIF-Zone offers its patrons extremely attractive incentives. Geographically well positioned with excellent land, sea and air links to the rest of the world, SAIF-Zone is a dream come true for the businessman. Modern premises, equipped with the latest facilities and a secure environment ensures maximum returns for the investor.

• Access to over 2 billion consumers
• Strategic location between east and west
• Abundant and inexpensive energy
• Competitive fee structure, property & management leases
• 24-hour hotline for equipment and provision of labour
• Unlimited work force with an economical wage structure
• Sponsorship & visas for all staff
• Highly qualified bilingual staff
• Access to ports in the Arabian Gulf & Indian Ocean
• International air links across the world via Sharjah International Airport
• Back-up services include those provided by the Sharjah Chamber of Commerce and Industry, Sharjah Expo Center and over 40 international banks.

Tax Incentives : An oppressive and restrictive tax regime is the most effective way to kill business and initiative. A lenient and customer oriented tax structure makes the SAIF-Zone an attractive business proposition.

• 100% exemption from corporate and personal income taxes, for the company, the Investor and their employees.

Trade Incentives : In order to maintain flourishing trade in a competitive business environment, SAIF-Zone offers excellent trade incentives. This is evident from the fact that the number of companies has gone up from just 55 in 1995 to more than 1800 in June 2005.

• 100% foreign ownership
• 100% repatriation of capital and profits
• 100% free transfer of funds
• 100% exemption of import and export duties
• 25 years lease extended to similar period

Salient Features:

• 100% foreign ownership & repatriation of funds with no currency restrictions
• 100% exemptions from corporate and personal income taxes
• 100% import and export tax exemption
• 100% exemption from all commercial levies
• Free transfer of funds & stable currency linked to the US$
• Highly qualified bilingual staff
• Access to over 2 billion consumers
• Strategic location
• 25 years lease extended to similar period
• A choice of location and plots in different size pre-built warehouses & office space
• License issued in 24 hours
• Abundant & inexpensive energy
• Competitive structure for fees, property & management
• A 24 hour hotline for equipment & provision of labour in cargo operation
• On-site staff accommodations,administration & management services
• Sponsorship & visas for all staff
• Economical wage structure & no restriction on hiring of 100% expatriate workers
• Global & regional communications with excellent sea,land & air transport links
• Access to ports in the Arabian Gulf & the Indian Ocean
• Global airlinks across the world via Sharjah International Airport
• 6 to 8 hrs. of Sea-Air transfer
• Home of Lufthansa Cargo regional aviation hub with 360 flights & more than 14,000 tonnes of cargo movement per month
• High frequency of cargo airlines operates to 42 CIS destinations & 32 Indian & Far Eastern destinations from Sharjah International Airport.
• Largest export volumes in the U.A.E. and one of the major airports in charter operations
• No deposit customs policy for cargo in-transit between Sharjah seaports & the SAIF Zone
• Sharjah offers the cost-effective living & modern business & leisure amenities
• Quality banking services at competitive rates from over 47 banks including 31 international banks
• Sharjah dominates half of the industrial activities in the U.A.E. with easy access to International Exhibitions hosted in the U.A.E. and Middle East

Company Registration

To operate from within the SAIF-Zone, a company has to be incorporated. The Legal Status of the companies in SAIF-Zone are classified as here under.

Legal Status

1. Branch of a Company : Companies established in U.A.E or a foreign country may establish a branch in SAIF-Zone. Branches are of two types classified as hereunder
   1. Branch of a Foreign Company : A company situated in a foreign country, if so authorised by it's documents, can establish a branch of their company in SAIF-Zone. The SAIF-Zone branch of such company shall have the same name as that of the parent company.
   2. Branch of a U.A.E (Local) Company : A company established in U.A.E, if so authorised by it's documents, can establish a branch of their company in SAIF-Zone. The SAIF-Zone branch of such company shall have the same name as that of the parent company.
2. Free Zone Company (F.Z.C) : Two or more legally capable persons natural or juridical can establish a Free Zone Company in SAIF-Zone with a minimum capital of AED.150,000/- or it's equivalent in US Dollars. In normal cases the maximum number of shareholders is up to 5 and if approved by the SAIF-Zone management the maximum number of shareholders can go up to 7 shareholders. Liability shall be limited to the FZC's share capital.
3. Free Zone Establishment (F.Z.E) : A legally capable person natural or juridical can establish a Free Zone Establishment in SAIF-Zone. In other words there shall be only one owner (shareholder) in a Free Zone Establishment. The minimum amount of capital required is AED.150,000/- or it's equivalent in US Dollars. Liability shall be limited to the FZE's share capital.

Choice Of Licenses

Investors can avail different types of licenses in order to do business in the SAIF-Zone.

• Industrial License - Allows the investor to import raw material, manufacture, process, assemble, package and export the finished product. (Subject to clearance from SAIF-Zone Health & Environment Dept.)
• Commercial License - Allows the investor to import, export, distribute, consolidate and store items specified in the license. There is a maximum limit of three similar product lines.
• General Trading License - As the name suggests, a large number of products fall within its ambit. This type of license can be obtained under the commercial license.
• Service License - Allows the investor to carry out only specified services. (Unless restricted by the federal or local authorities, all types of services are allowed within the SAIF-Zone).

Leasing and Licensing Procedures

Keeping red tape and procedural hazards to the minimum, SAIF-Zone offers its patrons a single window solution to all their requirements. Within 24 hours of submission of the requisite documents, all licenses and permits are issued.

Registration Steps (24 hrs. processing of License/Permits)

• Presenting complete documents and project outline to the Marketing and Sales Dept.
• Receiving the approval letter, paying the leasing amount and signing the lease agreement with the Marketing and Sales Dept.
• Receiving your license, lease agreement and keys of the premises from the Lease and Licensing Dept.
• Receiving visas, ID cards etc. from Client & Investor Services Department

Land on Lease : For the investor who is keen to build his own factory, SAIF-Zone provides plots of land of various sizes (min.2500 sqm)

Utilities : Electricity and water connection rates are as per requirement of investor and usage at investor is expense.

Terms of Lease: Annual, with investor option for 25 years and renewable for a similar period.

Warehouses : SAIF-Zone has made provisions for high quality insulated warehouses. Available in four sizes and functional, they can be used for storage and distribution or for assembling and packaging or even for light and medium industry use. Investors can lease more than one unit at a time as per requirement.

Temporary Storage Area : This is provided on request and as per the requirements of the investor.

Container Parking Area : Parking area for containers (20feet or 40feet) is provided for the investor on monthly or yearly basis.

Bunkers : Small sized bunkers that can be used for storage and larger bunkers that can be used by industrial units are offered by the SAIF-Zone. To safeguard against fires, electronic cranes and manual lifter (fire systems) are also provided.

Tenant & Labour Accommodation : The on-site provision for the accommodation of male and female laborers is yet another facility given to the investor.

One Window Operation : Efficiency and speed are cornerstones of the operations at SAIF-Zone. In order to ensure this, all required services and formalities are provided under one roof, saving valuable time and money for the businessman.

Customs : No taxes are levied on goods imported and exported from the UAE through any of the Sharjah seaports or the Sharjah International Airport. However, if the distributor would like to sell his product within the UAE, 5% custom duty is levied. There is no deposit required for cargo in-transit between Sharjah seaports and the SAIF-Zone.

Banks : High quality banking services are available from over 40 locally and internationally incorporated banks that operate from Sharjah and within the premises of the SAIF-Zone.

100% exemption from corporate and personal income taxes, for the company, the Investor and their employees.

Post Office : Postal services are available inside the Zone. Red mail collection boxes too are available within the premises.

Courier : Representatives of some of the major courier companies like DHL besides a number of local courier companies operate within the Zone.

Restaurants : A multi cuisine food court on the Zone's premises Provides the customers with a choice to choose from. Besides multi cuisine small resturants and cafeterias offer good food at reasonable rates.