Background
Fujairah holds a unique position in the UAE. It is the only emirate that lies on the eastern side of the UAE, along the Gulf of Oman, while the other six emirates are along the Arabian Gulf. Its area is about 1450 sq km and it has a distinctive landscape of mountains, plains, sea coast and desert.
The Emirate derives its name from a spring of water located beneath one of the mountains. The Hajar mountain range that divides the UAE in two, from Ras Al Khaimah to Al Ain ,has kept Fujairah separated from the rest of the country. The main cities and villages in Fujairah are Dibba, Murbeh, Qidfa, Al Bidiyah, Masafi and Al-Siji.
The Port of Fujairah is the largest multi-purpose port on the Eastern Seaboard of the UAE. Its strategic position has proved attractive to both the range of users of the multi- purpose port and the significant numbers of vessels calling at the Fujairah Anchorage for bunkers, supplies and service. Fujairah, along with Singapore and Rotterdam, ranks as one of the top three bunkering points in the world.
Fujairah International Airport is a port of call for Gulf Air, Indian Airlines, Egypt Air and CIS Airlines as well as several cargo carriers and operators.
Economy
With a strong commitment to trade and industry in the region, and an open policy towards the growth of its economy, Fujairah is fast becoming a renowned commercial and industrial principality in the Emirates. A thriving port, an impressive international airport, a variety of light-to-large industries and successful agricultural ventures all bode well for the future. In addition, the Emirate has seen the influx of some of the leading names in banking and insurance, and its free trade zone (see more below) reflects Fujairah's progressive policies.
Fujairah's strategic & unique location, as the UAE's only Emirate on East Coast, plays a key role in its development. Boasting a powerful blend of the traditional values of the East and modern technologies of the West, Fujairah offers a standard of living comparable to that of world's most developed nations. More than a quarter million people of various nationalities, including Emiratis, inhabit this Emirate.
The federal government employs the majority of the native, local workforce, with few opening businesses of their own. Many of the locals work in the service sector. The Fujairah government prohibits foreigners from owning more than 49 per cent of any business.
Fujairah's free zones have flourished, partly due to the relaxation of such prohibition within the zones, as full foreign ownership is allowed there. Shaikh Saleh Al Sharqi, younger brother to the ruler, is widely recognised as the driving force behind the commercialization of the economy.
While the future for Fujairah's economy looks positive, much if it is still based on subsidies and federal government grants distributed by the government of Abu Dhabi. Local industry includes cement, stone crushing and mining while a resurgence in the construction sector has helped boost the local economy.
Investment climate and opportunities
Fujairah has been under the radar for many investors but all that seems certain to change in the coming years. The ruler is planning to make significant changes that will significantly boost Fujairah‘s economy. Among tourism projects in the pipeline is an $817m resort, Al Fujairah Paradise, near Dibba Al-Fujairah, on the northern Omani border, next to Le Meridien Al Aqah Beach Resort. There will be around 1,000 five-star villas as well as hotels, and it is expected that all the construction work will be finished within two years.
The Sheikh is also trying to improve opportunities for the local workforce, by trying to entice businesses to locate in Fujairah and diverting Federal funds to local companies in the form of development projects. An Abu Dhabi-Fujairah Pipeline has also been announced which will create an oil export terminal in the Emirate. All offer ample opportunities for Western investors.
A key factor in the development of Fujairah’s opening up to trade is its free zone. A fortunate combination of geographic location, with access to world's major shipping routes, a fine port and airport, and streamlined procedures, make the Free Zone of Fujairah an ideal place for business. Benefits of the free zone include 100 per cent foreign ownership, 100 per cent tax exemption, 100 per cent capital & profits repatriation, a variety of duty exemptions, common customs facility (with Port and Airport) and abundant, and inexpensive energy.
