India-UAE to foster trade opportunities
Edwin Lammers, Vice President for Commercial and Business Development, Khalifa Industrial Zone Abu Dhabi, talks about the trade aspects between India and UAE regarding the food export and import.
Kindly highlight on the IndiaUAE investment prospects?
The UAE is a gateway to 4.5 billion consumers across several regional and international markets and is the second largest economy and the most important business hub in the GCC. It is also the largest re-export centre for food products serving the entire MENA markets.
The market trends for the UAE are highly conducive for Indian investments. Fuelled by a growing population and increasing disposable income, UAE’s food imports is estimated to be over USD 100 billion. There also exists a market for Indian products as approximately 2.8 million Indian expatriates live in the UAE and food is the 3rd highest commodity sold between India and the UAE.
What are the opportunities for Indian exporters?
The UAE is expected to consume 10.1 million tonnes of food by 2021 and the retail sales value for packaged food goods will grow to a projected $ 5.6 billion tonnes.
The region continues on the same trajectory, with the GCC being a major hub for food re-export and the value of its food retail sector estimated to be $106 billion – opening considerable opportunities for Indian exporters. As the food products market in the MENA is expected to grow to $1 trillion by 2030 – the potential for expansion will hopefully rise.
Please give us some insights on KIZAD’S food manufacturing cluster.
KIZAD’s food manufacturing cluster is the largest in the region, and has successfully partnered with big names in the food production industry including Spinneys and Sadia. The Khalifa Port Free Trade Zone as part of KIZAD offers serviced land plots for food processing and logistics to support a wide range of food packaging, processing, flour mills and rice production companies. Both international and regional companies benefit from the unrivalled competitive advantages offered by KIZAD including its low registration and utility rates as well as its outstanding access to international markets and its world-class infrastructure facilities.
How do investors benefit from KIZAD’S multi-modal transportation infrastructure?
KIZAD provides multimodal connectivity with Khalifa Port (fastest growing deep-water port in UAE) that is connected to 60 different ports, four international airports in close range, express-highways and road networks across the GCC and a planned railway network. Through this infrastructure, investors for the food industry have quick and efficient access to the UAE itself, the wider region and international markets smoothens trade processes, and opens new avenues for expansion.
How is Khalifa Port, KIZAD, and its free zone (KPFTZ) supporting companies to grow and access more markets?
The location offers shipping lines efficient transhipment options and an excellent platform to serve the entire Gulf Region, the Indian subcontinent, the Red Sea, East Africa and other neighbouring countries. Given a rising demand for KIZAD and Khalifa Port Free Trade Zone services, we have invested in the construction of 35 new free zone warehouses and 75 Pre-built Light Industrial Units (LIU). It also offers customised free trade zone business policies such as 100 per cent foreign ownership, no restriction on repatriation of capital and profit, duty free import and re-export etc. that create a competitive environment for operating companies.