At 40%, Europe was Dubai Airport Free Zone's (DAFZ's) biggest foreign investor, followed by the Gulf Cooperation Council, which included Saudi Arabia, Bahrain, Oman, Qatar, Kuwait, and the United Arab Emirates (UAE), with 19%, and North America's 12%.

At a function organised in Johannesburg to draw investment and educate local entrepreneurs about investing and doing business in the booming city, DAFZ marketing director Ibrahim Ahli said that Dubai was seeking South African investment.

He noted that petrochemicals giant Sasol had already established an office in the city.

Other South African companies that had set up shop in Dubai included restaurant chain Nandos, construction firm Murray & Roberts, defence company Denel, and retailer Woolworths, department of Tourism and Commerce marketing Southern Africa director Antoinette Lintvelt Lloyd detailed.

South African investment in Dubai had risen by 130% since 1999.

She said that, in 2006, some 4 000 South Africans visited Dubai, one of the UAE seven emirates, which shot up to almost 100 000 last year.

GROWTH

Since oil was discovered in the region in the 1960s, the city had shown phenomenal growth, but is currently only dependent on the fuel for under 5% of its gross domestic product (GDP).

Industry was now the biggest sector, contributing 15,7% to GDP.

Dubai, the commercial capital of the UAE, had enjoyed economic growth of an average 13% since 2000, well ahead of the targeted 11,3% growth by 2015.

Lintvelt Lloyd said that the city operated as a hub to three major regions - Europe, Asia and Africa - offering a market of around one-billion people. Dubai itself housed a 1,4-million-strong population.

INCENTIVES

The city boasted a number of incentives for companies that wanted to invest there, particularly in the "free zones" Dubai's government had established.

These zones included Dubai Internet City, which Lintvelt Lloyd stated was envisaged to be the "Silicon Valley of the Middle East", Dubai International Finance Centre, and DAFZ.

Investing in these zones meant that companies would not have to pay tax for 50 years, 100% ownership, and other incentives.

Ahli said that DAFZ had grown rapidly since its inception in 1996.

In 2000, it had 10 000 m2 of office space, but would boast 132 000 m2 by the end of this year, 85% of which were occupied.

OPPORTUNITIES

For South African companies, the main business opportunities were in the healthcare, media and technology, and education and training sectors, amongst others, Lintvelt Lloyd stated.

Tourism, trade, transport, construction and financing also offered opportunities, she said.

Johannesburg Chamber of Commerce and Industry Keith Brebnor said that South Africa had some catching up to do in taking advantage of business opportunities in Dubai, against which "even the Singapores of this world are going to pale in the end".

To subscribe to Engineering News's print magazine email subscriptions@creamermedia.co.za or buy now.