Arab investments in Alat FEZ hit $500 million

Investors from the United Arab Emirates (UAE) have invested $500 million in the creation of production in the Alat Free Economic Zone (FEZ), an informed source told Trend on June 11. At the same time, the source did not specify what project it is.

Investors from the United Arab Emirates (UAE) have invested $500 million in the creation of production in the Alat Free Economic Zone (FEZ), an informed source told Trend on June 11. At the same time, the source did not specify what project it is.

The FEZ is being created in the Alat settlement of Baku on the basis of the order signed in March 2016 by the President of Azerbaijan Ilham Aliyev. The territory of the new Baku International Sea Trade Port is also included in this zone.

Consulting services within the creation of the FEZ are provided by the Arab company DP World (Dubai Port World – one of the world’s biggest port operators) and the Islamic Corporation for the Development of the Private Sector (ICD, part of the Islamic Development Bank Group).

“The rules of the FEZ provide for exemption from taxes and customs duties for residents. Their expenses may be related only to the initial registration of the company,” the source noted.

Alat FEZ is expected to bring up to $1 billion just in the first few years. Special tax and customs policy, which will be pursued in the territory of the free trade zone will also stipulate further development and simplification of a number of procedures.

FEZ will be located within the grounds of the new port, covering an area of 100 hectares. Since the new port is being built at the major railway juncture connecting the NorthSouth and the East-West railway lines in Azerbaijan, FEZ will also have rail access.

Serving as a multimodal transit logis¬tics hub, the new port and FEZ will become a major consolidation and distribution centre in Central Eurasia that provides a wide range of value added services.