PRESIDENT OF THE CIVIL AVIATION AND CHAIRMAN OF EMIRATES, HH SHEIKH AHMED BIN SAEED AL MAKTOUM

THE DUBAI AIR CARGO TERMINAL IS ONE OF THE MOST MODERN AND EFFICIENT IN THE WORLD

Those visitors will profit handsomely from new facilities at Dubai International Airport, but within the framework of the airport's expansion program, cargo and freight handling are also a top priority. As it has carefully studied the needs of leisure visitors and responded to them with spanking new terminals, the Department of Civil Aviation has responded to freight and cargo handlers with the creation of the $75 million Dubai Cargo Village.

Covering 300,000 square meters of space, the Dubai Cargo Village opened in 1991. It is the first cargo handling facility in the Middle East to be awarded an ISO 9002 certificate by Lloyd's Register of Quality Assurance, and has also won the "Best Airport Middle East" award from the Asian Freight Industry for six consecutive years, between 1994 and 1999. It is one of the biggest such facilities in the Middle East, but it is also one of the most efficient. It boasts a turn-around time of 90 minutes for a Boeing 747 freighter, or one-third less than the two hour turn-around time that is the industry standard.

But as successful as it is, the Dubai Cargo Village went quickly into over-capacity and immediately required expansion to meet the continually growing demand on its facilities. It was originally designed to handle 250,000 tons of cargo annually, but in 1998 it handled 420,000 tons and forecasts predict it will likely handle one million tons by the year 2005, two million tons by 2014 and 2.7 million tons by 2018.

The $200 million expansion program will include the construction of the state-of-the-art Mega Terminal, which will increase the capacity of the Dubai Cargo Village to the 2.7 million tons it is expected to handle in the next 20 years. The terminal will be 900 meters long, three stories high and will contain storage space as well as office space.

On the ground level, with 12 meters of clear height, separate gates will handle different categories of cargo (import, export, and air-sea shipment), and will have a designated area for special items such as particularly valuable or perishable goods. The second level, at eight meters, will be for transshipment cargo requiring less storage but greater handling space, while the third level, at 4.5 meters, will be used as a workshop, storage facility and as the location for the buildings air-treatment units.

Dubai's strategic location within the Emirates and at the center of the Middle Eastern market, plus its remarkably modern infrastructure, high-tech telecommunications network, transport network and security, as well as the high quality of life benefits and the culture's openness to foreigners, have made it an appealing location to hundreds of multinational companies seeking to locate their headquarters in the area. To date, some 95% of the world's largest corporations have made the city their regional headquarters, and the trend will most likely continue.

In recent years, many have chosen to come because of the creation of the Dubai Airport Free Zone (DAFZ). This is an area of 1.2 million square meters that is being developed to accommodate a number of technology-driven industries and for goods with a high value-to-weight ratios. Apart from the facilities, the DAFZ offers companies the benefits of 100% foreign ownership, a tax-free status for up to 15 years (renewable for a second 15 years), the right to use other facilities outside the zone such as the modern airport and the Dubai Cargo Village, freedom to move capital and no personal income tax.

So far, about 90% of the DAFZ office space has already been allocated, with such tenants as Agusta, Boeing, Dell, Digital, Evans & Sutherland, as well as Samsonite, Tag Heuer, and Chanel. Demand will likely exceed availability, but the government will maintain high standards in awarding space to potential occupants, according to Dr. Zarooni, Director of the DAFZ.

"When giving out the license to a company to operate out of the Dubai Airport Free Zone, we are expecting to attract companies whose presence will boost the economy and image of the Emirate of Dubai, companies who will, in the coming future, invest in setting up an assembly unit here," he said. "It is our objective not just to promote Dubai Airport Free Zone and Dubai International Airport. We aim to contribute to the growth of the Emirate of Dubai."

Still other incentives to the DAFZ are a research center that will contain information on free-zone activities around the world, a Service Center to handle paperwork and interface with the local government, an employment service for people looking for jobs within the DAFZ, as well as other auxiliary services such as banks, pharmacies, restaurants, and shops.

Dubai has been a strategic trading post for more than 15 centuries, throughout which it was chiefly a unique location on the Persian Gulf that recommended it to shippers and manufacturers. Unprecedented development of the region in the last 50 years have underscored the importance of that location, not just to the Emirates or the Middle East, but to Africa and the Orient as well. But add to that location the advantages of Dubai's modern facilities, sunny weather, wide sandy beaches, luxurious hotels, top-ranked sporting events and liberal business climate and you have all the makings of a metropolis slated to be one of the brightest stars in the constellation of world business centers. With recent past as prologue, that star will rise quickly.

"Dubai has been witnessing remarkable all-around growth," Sheikh Ahmed observes. "It is our aim not just to sustain this growth but to make sure we stay abreast if not ahead of the best in the world."