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    Posted March 17, 2014 by
    prospectgrp
    Location
    Abu Dhabi, United Arab Emirates

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    ZonesCorp CEO Mohamed H Al Qemzi on delivering industrial growth in Abu Dhabi

     
    Mohamed H Al Qemzi is the CEO of the Higher Corporation for Specialized Economic Zones (ZonesCorp), the government entity directly responsible for the establishment, management, and operation of specialized economic zones in Abu Dhabi. He spoke with The Prospect Group about ZonesCorp growth and expansion plans, working together with other industrial stakeholders in Abu Dhabi, and the benefits of ZonesCorp’s regulatory structure.

    FULL TRANSCRIPT:

    What new initiatives and developments are currently underway at ZonesCorp?

    AL QEMZI: From its inception in 2004 until today, ZonesCorp has managed to develop around 50 km sq of specialized economic zones tailored for the industrial sector. Today, ZonesCorp is considered to be the largest purposed zone in UAE tailored for the industrial sector and that's something we are very proud of in Abu Dhabi and in the UAE. Our initiative is not going to stop here. We have some more things coming in the pipeline. We are looking forward to the development of further industrial cities in the Western Region. We're talking about 16 km sq of land that will be developed in the near future, tailored to serve the Western Region based on Abu Dhabi Vision 2030. The Western Region is a very important area in Abu Dhabi and the industrial sector will play a bigger role over there

    ZonesCorp is not going to stop here. We believe in 2020, ZonesCorp's land will be expanded up 100 km2, in line with the vision of Abu Dhabi 2030, where the industrial sector will play a bigger role and ZonesCorp is a leader in that role, in operating industrial zones. We're going to be reaching that target based on a studied road map we have come out with, the Abu Dhabi industrial strategy vision. The 100 km sq is already in the pipeline. We know exactly what we are planning to do. We have an Auto City development in an area of 6.9 km sq. We also have in the future, in line with the Etihad Railway, the creation of the ZonesCorp Logistics Centre in an area of 8 km sq. We are building the value chain, supporting the industrial sector, and coming in with these initiatives in our zones.

    How does ZonesCorp fit into the overall industrial infrastructure in Abu Dhabi? In what ways do you work together with KIZAD, Etihad Rail, and other industrial sector stakeholders?

    AL QEMZI: All the entities, ZonesCorp, KIZAD, Etihad Rail, our aim is to serve Abu Dhabi to the best mandate being given to us. There is a very strong level of collaboration between all of us. We talk about the ZonesCorp Logistics Centre in ICAD IV, which will be a main hub for Etihad Rail. We talk about our colleagues in KIZAD; we are working together to diversify the industries between us. There are industrials coming to us, there are some investors coming that are keen to have access to seaport operations. We direct those investors to go toward KIZAD. Likewise in KIZAD, there are investors looking forward to having a closer distance to Abu Dhabi city and other anchor operations within our zones, such as Emirates Steel. They divert such investment or investors toward us. So there is collaboration between us, both of us, and all other stakeholders that are related to the industrial sector. There is harmony; there is integration and a way forward. At the end, it's Abu Dhabi that we are working for.

    How successful has ZonesCorp, and Abu Dhabi in general, been at developing clusters and creating downstream activity around anchor industries?

    AL QEMZI: The clustering approach that ZonesCorp implemented was based on the environmental impact of that operation. If we talk about a real clustering approach, that would require heavy investment in the beginning, which is not our approach, not our execution. When we execute, or we say when we create a cluster based on the environment impact of that operation existing, we manage to do so by doing that approach. We’ve managed, every year from 2011 until today, to lease land of around 2 km sq every year, and that helps. We are also shifting toward the eco-friendly operations. The knowledge, the base of understanding and the proper, real, industrial contribution or added value to the economy, is now becoming very clear to the investors themselves. This is also part of the strategy of Abu Dhabi.

    We have managed to create those clusters. We managed to create the value chain around the existing anchor investors, for example Emirate Steel. We managed to gather any operation related to the steel sector in ZonesCorp, and we believe this is a very beautiful model we can continue moving forward on, and that will help us down the road. When you look at ZonesCorp's master plan, you will see there's clustering based on the environment, where any investor, when he comes, he knows his land and his operations will not be impacted by the neighbour’s operation. We believe, even though the government of Abu Dhabi has always been very sincere toward environment related issues, that we also play a very important role in that because as much as we do contribute to the economy, also we need to contribute to our environment and to protect it and save it for the future.

    What is your future outlook for industrial development in Abu Dhabi and for the continued growth and expansion of ZonesCorp?

    AL QEMZI: Our future expansion is in line with the strategy of Abu Dhabi 2030, where the industrial sector plays a bigger role in achieving that vision. Our aim is to contribute to the economy. Our aim is to create jobs within Abu Dhabi and we are not doing this by ourselves. There is synergy today between all the stakeholders to that vision and, being part of it under the umbrella of the Abu Dhabi Department of Economic Development, we have a very clear understanding of where we are going. We are not working in silos. No more silos. Communication is there, doors are open, and we are an open book with each other. We try to find where there is a problem and as a whole team we go and solve it. Once we solve it, that will be used as a test case approach and we can solve other problems with it.

    We’ve managed to do so. I remember, 4 years ago or 3 years ago, an application for locating land would take you 365 days, one year. Gradually we discounted that number of days. In 2012, we reached 50 days. Today, we can say we have reached 20 days. We did not do this by ourselves. We managed to do this with other stakeholders, with our partners, and other government entities, because our aim is to see how we can really give the support to the investor. No complications, no barriers, that's our job. So that tells us we are going in the right direction. First of all, we have to look at what we have. If this needs some correction or it needs some modification, we do it. We don't just stick to one thing, no. We have to keep evolving, we have to keep being creative towards giving the best service to our investor and we have managed over the last three years to learn so much by doing so. There isn’t something called an answer “No”. There is always an option, and that's what our managers give to our investor when he approaches us, even for land. It’s not just here’s one piece of land and stick with it, no. He's given options to see what fits his requirements. We’re giving him the choice to choose it. So by reaching this level we're not finishing here. No, actually there are so many things we can still do.

    So what I see for ZonesCorp down the road, what we have achieved today is only the beginning. Where we are going is not only to be the largest purposed zone for the industrial sector. We're aiming to be a benchmark within the region as the preferred choice for the industrial sector, for any investor coming to the UAE to look at the preferred choice to be ZonesCorp, for services, transparency, ease of doing business, and the most important thing, the sustainability of having an investment and the growth that he will manage to have when he comes to ZonesCorp and Abu Dhabi.

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