Business News
International Free Zone Authority (IFZA): A catalyst for business excellence in the UAE
Mar
In conversation with Martin Pedersen, Chairman, IFZA:
How does IFZA set itself apart from other free zones in the UAE?
We constantly think from the perspective of our target groups. Together with the mindset of excellence in every aspect, this leads to a culture of constant progress, presenting the IFZA platform and its products in a much better way than anybody else.
Our commercial understanding meets the commercial need of our clients, which leads to an excellent experience in every touchpoint they have with IFZA.
You have an entrepreneurial flair and are encouraging others to do the same. Why do you think that the UAE provides such a wonderful platform for entrepreneurs?
The UAE’s long-term vision, strong leadership and will to continuously strive for progress are what fascinated me 30 years ago and continue to do so today.
I am impressed by the high activity level and noticeable efforts to become better with every day. This is the place where new visions arise and immediately transform into projects.
The fact that entrepreneurs, their employees and their families all benefit from this unique development is what makes the UAE so extraordinary.
What makes Fujairah especially attractive is the fact that there is a lot of room to develop new businesses. The emirate is undoubtedly not yet saturated and offers attractive opportunities for investors.
It is the positive vibe that attracts people like me to invest all their energy and makes them spend their entire business and personal life in the UAE.
My belief in long-term progress and my trust in the UAE to maintain and even extend its position of being the most business-friendly — and one of the safest — places in the world is the key for investors to choose the UAE. And what makes Fujairah especially attractive is the fact that there is a lot of room to develop new businesses. The emirate is undoubtedly not yet saturated and offers attractive opportunities for investors.
Why do you think the next decade is an exciting one for IFZA?
IFZA is just at the beginning of an exciting journey. Its purpose is to support the progress of the emirate of Fujairah, contributing to shaping its positive reputation.
Our long-term strategy is very ambitious yet realistic, when considering our excellent performance so far. This gives us confidence that our long-term targets will be achieved or even exceeded.
In terms of IFZA, our target group are international customers who seek their future in a place with excellent and promising conditions. The potential in this regard is almost unlimited, so we are working with all our energy to grow, while maintaining a spirit of long-term success and responsibility.
The UAE, as the trading hub in the region, is and has always been a logistics-oriented place, and the perfect location of Fujairah in particular, with its excellent infrastructure, attracts investors and international business people to us. Also, the logistics sector has to adapt to a changing world, and we want to be a part of that.
As a free zone that attracts entrepreneurs from all over the world, what key sectors do you think will boom over the next five years?
I believe that we will see more businesses following global megatrends shortly — be it artificial intelligence, the internet of things, e-commerce, healthcare or sustainability with all its various subjects.
The terms sustainability or going green will turn from more or less vague intentions to concrete measures in various aspects of our life. Many business opportunities will arise as a contribution to securing our future.
We can see some of our clients already today starting businesses in these areas, which is exciting to follow.
In conversation with Jochen Knecht, CEO, IFZA:
IFZA witnessed growth in 2019, what do you think the future will hold?
We are currently monitoring the situation with Covid-19 and its implications. I believe we must not identify this solely as a problem, but rather see this as a challenge to overcome and learn something from it for the future. We can do this by adapting our product offering, to offer specialised packages and adapt to the situation. Looking beyond, to a brighter future, there is potential in various aspects.
There is certainly potential in attracting companies to Fujairah from Europe and other areas of the world. Another aspect is targeting logistic-orientated companies and bringing them to Fujairah with a view for them to benefit from the unique strategic location and the remarkable infrastructure of the emirate. I expect the future to be very positive.
In terms of the market positioning, surely we want to be the number one choice for companies and entrepreneurs who are looking for a place where they can develop their business in a professional, flexible and fair environment, so that they can concentrate on their business.
What is your vision for IFZA?
For me, the vision for the company means how we are positioned in the market in the mid-to long-term future. The second aspect is our culture. How do we interact with our customers, with the authorities, our employees and other stakeholders? In terms of the market positioning, surely we want to be the number one choice for companies and entrepreneurs who are looking for a place where they can develop their business in a professional, flexible and fair environment, so that they can concentrate on their business. For the culture, our approach is very simple, we treat everybody with respect, offer a truly professional set up and feel responsible for social and environmental matters. This is very important.
What projects do you have in the pipeline?
Our ongoing smart logistics city project certainly keeps us busy. We are starting with a sustainably developed smart warehouse office concept on our plot in Fujairah itself.
What do you think is the key to the company’s success?
IFZA is not the first free zone in the UAE and there will be more to come. All free zones are bidding to attract local and international customers through various channels, with some targeting specialised groups. Even though it’s not a new idea, or approach, the key to success for me is customer orientation. We try to provide a real peace of mind environment for our customers. They should not feel trapped in a contract, but should be allowed to flexibly adapt their package whenever necessary.
As told to Helga Jensen Forde, Special to GN Focus
In conversation with Gerard Hobby, Registrar and Head of Legal, IFZA:
What steps has IFZA taken to ensure compliance with all UAE laws?
We are in the process of upgrading our regulations and standard documentation to take into account all the current UAE legal developments, particularly the newly evolving requirements of the 2018 Anti-Money Laundering Law and the 2019 Economic Substance Test (EST) regulations.
How do you assess the importance of a stable and transparent legal system for free zones in general?
We are in the process of upgrading our regulations and standard documentation to take into account all the current UAE legal developments, particularly the newly evolving requirements of the 2018 Anti-Money Laundering Law and the 2019 Economic Substance Test (EST) regulations.
Extremely important. We recognise the intrinsic limitations of what a commercial free zone can do in terms of creating a separate legal jurisdiction. To the extent we can, we choose to co-opt best practice. For instance, under the new pro forma Articles of Association for incorporation of limited liability companies in the IFZA, under our new company and licensing regulations, shareholders will agree to refer all intra-company disputes to the courts of the Abu Dhabi Global Market (ADGM). We believe in doing the basic things well and ensure that our client registration and compliance processes are clear and concise.
Do you foresee the introduction of EST having an effect on IFZA and on the company formation sector in the UAE as such?
It will definitely have an effect in certain niche areas but will not affect the overall appeal of the UAE’s free zones as a flexible and attractive place to do business from. The EST regulations themselves are relatively straightforward for genuine businesses to comply with.
Would you say IFZA’s rules and regulations appeal to or deter international clients?
We are excited to be releasing our new company and licensing regulations, which will be accompanied by a new pro forma set of company Articles of Association and associated template forms. We believe these will propel IFZA to being one of the preferred free zones in the UAE to set up business in.
How IFZA contributes to the investment ecosystem of the UAE
“The UAE, and especially the emirate of Fujairah, encourages new international investors to enter and engage in business. International Free Zone Authority (IFZA) has been established to drive business activities in the emirate.
We are constantly increasing the quality of collaboration, both in Fujairah and the UAE, in order to become more professional, efficient and successful.
“The collaboration with various authorities on the level of the emirate, as well as on the federal level is very important for the overall target of being the first choice for international investors.
“We are constantly increasing the quality of collaboration, both in Fujairah and the UAE, in order to become more professional, efficient and successful.”
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