Top

Published in:

2021 | OriginalPaper | Chapter

7. A Commercial Nexus Between East and West

Author : Robert Mogielnicki

Published in: A Political Economy of Free Zones in Gulf Arab States

Publisher: Springer International Publishing

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

Gulf free zones are nodes of international capital accumulation that facilitate commercial exchange with firms and investors from Asia, the Americas, Europe, Africa, and the Middle East. Newer initiatives, such as China’s Belt and Road Initiative (BRI), and more established socioeconomic relations, such as South Asian linkages to the Gulf region, are concurrently shaping and being shaped by free zone development and subsequent economic activities in the Gulf. The extent of Chinese actors’ involvement in Gulf free zones varies according to local contexts and needs. Free zone officials promote high-profile anchor clients from America, Europe, or the Gulf to enhance their respective reputations. However, firms and investors from South Asia, Russia, and other Middle Eastern and North African countries often constitute the bulk of free zone customers. Free zones are tools for advancing controversial foreign affairs portfolios, and Gulf-based developers export their free zone skills and services around the globe.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

inform now

previous chapter Free Zones as Spheres of Regional Contestation

next chapter The Fraught Future of Free Zones in Gulf Arab States

Smaller ratios of local citizens to total residents impose fewer demographic constraints and distributive responsibilities upon regional governments, which can offer more commercial incentives to attract Chinese investments in free zones.

Interview 56, staff member at Ajman Free Zone. Ajman, UAE, August 11, 2016.

Interviewees 21, 24, 25, 56, and 57 confirmed that Indians are the largest portion of free zone clients in Hamriyah Free Zone, Fujairah Free Zone, Creative City, Ajman Free Zone, and SAIF Zone, respectively.

Interview 56, staff member at Ajman Free Zone, Ajman, UAE, August 11, 2016.

Figures refer to registration numbers as of December 2017. The author remotely collected this data on December 13, 2017, from an employee of Dubai Technology Entrepreneurship Centre, a program of Dubai Silicon Oasis.

Interview 36, manager of Sohar Port and Freezone, Sohar, Oman, June 6, 2016.

See comments by a free zone official in Dhofar about multinational firms in the SFZ in the Omani free zones section of Chapter 4.

The Saudi-Iraqi Arar border crossing formerly reopened in November 2020.

Interview 40, senior industrial estate and free zone manager, Salalah, Oman, June 9, 2016.

Interview 42, director from the Public Establishment for Industrial Estates, Knowledge Oasis Muscat, Oman, June 12, 2016.

For a comparative case study in Asia, you can find studies on the “experimental form of territoriality” (Doucette and Lee 2015) in the Kaesong Industrial Zone between North Korea and South Korea.

“Abu Dhabi Ports Launches Accommodation Project for Chinese Companies in Kizad.” The National. October 1, 2019. https://www.thenational.ae/business/aviation/abu-dhabi-ports-launches-accommodation-project-for-chinese-companies-in-kizad-1.917789.

Abu Zaid, Mohammed. “Suez Industrial Zone to Attract $7bn in Investments: Russian Envoy.” Arab News. November 13, 2020. https://www.arabnews.com/node/1724086/business-economy.

Acar, Ibrahim. “Qatar Calls on Local Investors to Establish Industrial Zone Worth $2.5B.” Daily Sabah. September 26, 2017. Accessed September 28, 2017. https://www.dailysabah.com/business/2017/09/27/qatar-calls-on-local-investors-to-establish-industrial-zone-worth-25b.

Adly, Ayman. “China’s Official Media Outlets to Open Offices at Qatar Media City.” Gulf Times. October 2, 2019. https://www.gulf-times.com/story/643285/China-s-official-media-outlets-to-open-offices-at-.

Akinci, Gokhan and James Crittle. Special Economic Zones: Performance, Lessons Learned, and Implications for Zone Development. Washington, DC: The World Bank Group, 2008.

Adil, Hafsa. “Turkey, Iran, Pakistan See Big Trade Boost with Qatar.” Al Jazeera. December 3, 2017. Accessed June 1, 2018. https://www.aljazeera.com/news/2017/12/turkey-iran-pakistan-big-trade-boost-qatar-171203175422055.html.

“Ajman Free Zone Aims to Increase Its Portfolio of SMEs by 30% in 2017.” Al Watan. July 14, 2017. Accessed September 10, 2017. https://alwatannewspaper.ae/?p=205632 [Arabic].

“Ajman Free Zone Opens 5 Regional Offices During 2017.” Al Khaleej. August 6, 2017. Accessed September 10, 2017. https://www.alkhaleej.ae/economics/page/89de8104-1033-45e9-ad13-7d4158e16686 [Arabic].

Al Kaabi, Ebtesam. “Webinar on Charting the Post-Pandemic Future of U.A.E. Free Zones.” Public Webinar by the U.S.-UAE Business Council. September 23, 2020.

Alsabah, Alanoud and Mohammed Alsudairi. “Chinese Developmental Zones in the Gulf: The Case of Kuwait’s North Economic Zone (Silk City).” King Faisal Center for Research and Islamic Studies. Published May 2020. https://kfcris.com/en/view/post/281

Asian Infrastructure Investment Bank. “Oman: Duqm Port Commercial Terminal and Operational Zone Development.” AIIB. Updated 2020. https://www.aiib.org/en/projects/details/2016/approved/Oman-Duqm-Port-Commercial-Terminal-and-Operational-Zone-Development.html

Blanchard, Christopher. Saudi Arabia: Background and U.S. Relations. Washington, DC: Congressional Research Service, 2017.

Bohmer, Alexander and Antonio Fanelli. “Designing Economic Zones for Effective Investment Promotion in Iraq: Recommendations for discussion.” Accessed October 2020. Paris, France: MENA-OECD Investment Programme. https://www.oecd.org/mena/competitiveness/46868116.pdf.

“Chairman of DP World to Egyptian Government...,” Youm7. Accessed December 4, 2017.

https://static-content.springer.com/image/chp%3A10.1007%2F978-3-030-71274-7_7/MediaObjects/504223_1_En_7_Figa_HTML.png

[Arabic].

“China-UAE Industrial Capacity Cooperation Demonstration Zone.” China Daily. February 13, 2019. https://govt.chinadaily.com.cn/s/201902/13/WS5c63c755498e27e33803839e/china-uae-industrial-capacity-cooperation-demonstration-zone.html#:~:text=China%2DUAE%20Industrial%20Capacity%20Cooperation%20Demonstration%20Zone%20is%20the%20only,and%2080%20km%20from%20Dubai.

“China, UAE Pledge to Boost Belt and Road Initiative.” China Daily. December 15, 2015. https://www.chinadaily.com.cn/world/2015-12/15/content_22716381.htm.

Congressional Research Service. “Qualifying Industrial Zones (QIZs) in Jordan and Egypt: Background and Issues for Congress.” August 23, 2013. https://www.everycrsreport.com/files/20130823_R43202_2f48bd3c6671a55402f17cf7b26cf65fb860bfcd.pdf

Crane, George T. The Political Economy of China’s SEZs. Armonk, New York: M.E. Sharpe Publishers, 1990.

Crystal, Jill. Oil and Politics in the Gulf: Rulers and Merchants in Kuwait and Qatar. New York: Cambridge University Press, 1995.

“DAFZA signs MoU with the Federation of Israeli Chambers of Commerce.” Government of Dubai Media Office. September 25, 2020. https://www.mediaoffice.ae/en/news/2020/September/25-09/DAFZA-signs-MoU-with-the-Federation-of-Israeli-Chambers-of-Commerce.

Diwakar, Amar. “Oman’s Coastline Is the Next Stop on China’s Belt and Road.” Emerge85. December 19, 2017. Accessed December 20, 2017. https://emerge85.io/articles/omans-coastline-is-the-next-stop-on-chinas-belt-and-road/.

Dizon, Lani Rose. “QFZA in Talks with Turkish Firms Keen to Set Up Business at MARSA Port. The Peninsula. September 30, 2020. https://www.thepeninsulaqatar.com/article/30/09/2020/QFZA-in-talks-with-Turkish-firms-keen-to-set-up-business-at-MARSA-port.

Doucette, Jamie and Seung-Ook Lee. “Experimental Territoriality: Assembling the Kaesong Industrial Complex in North Korea.” Political Geography 47 (2015): 53–63.

“DP World Acquires Feeder & Regional Trade Operators.” TradeArabia. August 12, 2020. https://www.tradearabia.com/news/IND_371724.html.

“DP World, Chinese Firm to Develop Region’s First Free Zone Market in Dubai.” Gulf News. August 26, 2019. https://gulfnews.com/business/dp-world-chinese-firm-to-develop-regions-first-free-zone-market-in-dubai-1.66022421.

“DP World, Dubai Customs and Israel’s DoverTower Assess Trade Links Between UAE and Israel.” Emirates News Agency. September 16, 2020. https://wam.ae/en/details/1395302870335.

“DP World Reveals Ambitious Plans for Senegal and Mali.” Global Construction Review. October 4, 2017. Accessed December 4, 2017. https://www.globalconstructionreview.com/news/dp-world-reveals-ambitious-plans-senegal-and-mali/.

DP World Sokhna. “Overview.” DP World Sokhna. Published 2012. https://www.dpworldsokhna.com/Overview.htm.

“DP World to Invest Half a Billion in Somaliland Port.” Global Construction Review. May 31, 2017. Accessed December 4, 2017. https://www.globalconstructionreview.com/news/dp-world-invest-half-billi7on-somalila7nd-po7rt/.

“Dubai-China FinTech Agreement Brings New Opportunities for Dubai International Financial Centre.” Emirates News Agency. July 25, 2020. https://wam.ae/en/details/1395302857940.

“Dubai Diamond Exchange and Israel Diamond Exchange sign Landmark Agreement.” Government of Dubai Media Office. Accessed September 17, 2020. https://www.mediaoffice.ae/en/news/2020/September/17-09/DUBAI-DIAMOND-EXCHANGE-AND-ISRAEL-DIAMOND-EXCHANGE-SIGN-LANDMARK-AGREEMENT.

“Dubai’s DP World to Develop Free Zone in Somaliland,” Arabian Business. Accessed November 6, 2017, https://www.arabianbusiness.com/industries/construction/382868-dubais-dp-world-to-develop-free-zone-in-somaliland.

“Dubai’s Freezone Is Home to over 800 Indian Companies.” The Economic Times. February 10, 2016. https://economictimes.indiatimes.com/news/economy/foreign-trade/dubais-freezone-is-home-to-over-800-indian-companies/articleshow/50929195.cms?from=mdr.

“Duqm Authority Woos Chinese Investors to Free Trade Zone.” Times of Oman. September 17, 2017. Accessed December 21, 2017. https://timesofoman.com/article/116762/Business/Personal%20finance/Duqm-authority-woos-Chinese-investors-to-free-trade-zone.

Egypt’s GAFI to Establish 6 Public Free Zones During 2019/2020.” Egypt Independent. June 30, 2019. https://egyptindependent.com/egypts-gafi-to-establish-6-public-free-zones-during-2019-2020/.

Ennis, Crystal A. “Between Trend and Necessity: Top-Down Entrepreneurism Promotion in Oman and Qatar.” The Muslim World 105 (2015).

“EZW Inks Pact with Libyan Free Zone Authority.” Gulf News. October 3, 2007. Accessed December 1, 2017. https://gulfnews.com/business/sectors/general/jafza-inks-pact-with-libyan-free-zone-authority-1.205273.

Fahy, Michael. “China’s Investment in $10.7bn City in Oman to Provide Building Boost.” The National. August 20, 2016. Accessed December 20, 2017. https://www.thenational.ae/business/property/chinas-investment-in-107bn-city-in-oman-to-provide-building-boost.

“Feature: Vale—Mining Giant Logistics.” Logistics Middle East. May 31, 2017. https://www.logisticsmiddleeast.com/article-13264-feature-vale-%E2%80%93-mining-giant-logistics.

General Authority for Investment and Free Zones. “Investment Regimes: Free Zones.” GAFI. Accessed May 8, 2018. https://www.gafi.gov.eg/English/StartaBusiness/InvestmentZones/Pages/FreeZones.aspx.

Government of Fujairah. Statistical Yearbook: Nineteenth Issue 2015. Fujairah: Fujairah Statistics Centre, 2015.

Gray, Matthew. Qatar: Politics and the Challenges of Development. London: Lynne Rienner Publishers, 2013.

“HFZA Continues to Be a Strong Platform for Global Investors.” Gulf Today. November 2, 2020. https://www.gulftoday.ae/business/2020/11/02/hfza-continues-to-be-a-strong--platform-for-global-investors.

Hillman, Jonathan E. The Emperor’s New Road: China and the Project of the Century. New Haven: Yale University Press, 2020.

“Huawei and Dubai South to Collaborate on Smart City Innovation.” Albawaba. Accessed July 12, 2016, https://www.albawaba.com/business/pr/huawei-and-dubai-south-collaborate-smart-city-innovation-861290.

“Iraq Oil Minister: Establishment of Iraqi-Saudi Coordination Council a Significant Step.” Asharq Al Awsat. August 16, 2017. https://english.aawsat.com//home/article/1000266/iraq-oil-minister-establishment-iraqi-saudi-coordination-council-significant

“Israel’s Netanyahu Israel’s Netanyahu Flew to Saudi Arabia for Secret Meeting With MBS: Reports.” Time. November 23, 2020. https://time.com/5914814/israel-benjamin-netanyahu-met-mohammed-bin-salman-saudi-arabia/.

“Israel Will Import from UAE Free Zones, Netanyahu Says.” Reuters. August 17, 2020. https://www.reuters.com/article/uk-israel-emirates-trade/israel-will-import-from-uae-free-zones-netanyahu-says-idUSKCN25D1V2.

“Jafza’s Trade with China Reaches AED 46.4 Billion.” albawaba. May 15, 2016. https://www.albawaba.com/business/pr/jafzas-trade-china-reaches-aed-464-billion-840294.

Jones, Jeremy and Nicholas Ridout. A History of Modern Oman. New York: Cambridge University Press, 2015.

Kalin, Stephen. “Egypt Commits 1,000 sq km in South Sinai to Saudi Mega-City: Official.” Reuters. March 4, 2018. https://www.reuters.com/article/us-saudi-egypt-investments/egypt-commits-1000-sq-km-in-south-sinai-to-saudi-mega-city-official-idUSKBN1GH02G.

Khan, Taimur. “UAE and the Horn of Africa: A Tale of Two Ports.” The Arab Gulf States Institute in Washington. March 8, 2018. Accessed June 20, 2018. https://www.agsiw.org/uae-horn-africa-tale-two-ports/.

“Kuwait, China Sign MoU on Finding Mechanism for Silk City, 5 islands.” Kuwait News Agency. November 18, 2018. https://www.kuna.net.kw/ArticleDetails.aspx?id=2760010&language=en.

Lawson, Fred H. “International Regimes and Commercial Hegemony: Control of the Arabian Littoral, 1800–1905.” The International History Review 5.1 (1983): 84–112.

Maceda, Cleofe. “Dubai’s DMCC Expects ‘New Wave’ of Chinese Businesses, Opens Shenzhen Office.” Zawya. November 9, 2020. https://www.zawya.com/mena/en/business/story/Dubais_DMCC_expects_new_wave_of_Chinese_businesses_opens_Shenzhen_office-ZAWYA20201109091532/.

McLoughlin, Paul. “Oman Sees Trade Boost Following Qatar Blockage.” The New Arab. September 10, 2017. Accessed September 11, 2017. https://www.alaraby.co.uk/english/news/2017/9/10/oman-sees-trade-boost-following-qatar-blockade.

Mingas, Melanie. “Huawei-Supplied Stc Wins 5G Contract for Saudi Mega-City.” Capacity Media. Accessed July 29, 2020, https://www.capacitymedia.com/articles/3826056/huawei-supplied-stc-wins-5g-contract-for-saudi-mega-city.

Moberg, Lotta. The Political Economy of Special Economic Zones: Concentrating Economic Development. Abingdon: Routledge, 2017.

Mogielnicki, Robert. “Diversified Investment in the UAE Shaping China’s Economic Role in the Gulf.” Arab Gulf States Institute in Washington. July 29, 2019a. https://agsiw.org/diversified-investment-in-uae-shaping-chinas-economic-role-in-the-gulf/.

Mogielnicki, Robert. “The Political Veneer of Economic Exchange: Turkish Relations with Saudi Arabia and Egypt.” In Aspiring Powers, Regional Rivals: Turkey, Egypt, Saudi Arabia, and the New Middle East. Washington, DC: The Middle East Institute, 2019b. https://www.mei.edu/sites/default/files/2019-12/Aspiring%20Powers%2C%20Regional%20Rivals_Dec.%2013%2C%202019.pdf.

“More Chinese Companies Interested in Jebel Ali.” Gulf News. September 13, 2005. https://gulfnews.com/business/markets/more-chinese-companies-interested-in-jebel-ali-1.300661.

National Yemen. “Free Trade Zone Between Yemen and Saudi Arabia?” 2012. https://nationalyemen.com/2012/04/14/free-trade-zone-between-yemen-and-saudi-arabia/

Office of the Prime Minister. “Turkish Organized Industrial Zone to be Established in Qatar.” Directorate General of Press and Information. Ankara, Turkey. September 26, 2017. Accessed September 28, 2017. https://www.byegm.gov.tr/english/agenda/turkish-organized-industrial-zone-to-be-established-in-qatar/118930.

“Oman Counts on Chinese Billions to Build Desert Boomtown.” New York Times. September 5, 2017. Accessed September 20, 2017. https://www.nytimes.com/reuters/2017/09/05/business/05reuters-oman-china-investment.html.

Oman Ministry of Commerce and Industry. Annual Industry Report 2014. Muscat: Department of Industrial Information, 2014.

“Oman’s Al Mazunah Free Zone Signs 21 Investment Agreements.” Times of Oman. Accessed May 22, 2016. https://timesofoman.com/article/84244/Business/Oman's-Al-Mazunah-Free-Zone-signs-21-investment-agreements.

Oommen, Anup. “Dubai-China Trade Grows 81% to $37.84bn Over 10-Year Period.” Construction Week. November 13, 2019. https://www.constructionweekonline.com/business/260517-dubai-china-trade-grows-81-to-3784bn-over-10-year-period.

Oommen, Anup. “Ajman Free Zone Announces $1.6m Fund to Support China Mall.” Construction Week. March 22, 2020. https://www.constructionweekonline.com/business/263898-ajman-free-zone-announces-16m-fund-to-support-china-mall.

“Our Industrial Zones Base for Indian Firms to Expand Across the Gulf: UAE Official.” Business Standard. September 1, 2019. https://www.business-standard.com/article/pti-stories/our-industrial-zones-base-for-indian-firms-to-expand-across-gulf-uae-official-119090100317_1.html.

Oxford Business Group. “Foreign Investment to Boost Diversification in Kuwait Trade.” The Report: Kuwait 2017. https://oxfordbusinessgroup.com/overview/broadening-horizons-attracting-foreign-investment-becomes-key-diversification-plans

Paris, Costas. “Djibouti Rejects Court Ruling to Hand Back Container Terminal.” The Wall Street Journal. January 17, 2020. https://www.wsj.com/articles/djibouti-rejects-court-ruling-to-hand-back-container-terminal-11579296713.

Qatar Financial Centre. QFC Brochure. Doha: Qatar Financial Centre, 2016.

Qatar Science and Technology Park. “Resident Companies.” Qatar Science and Technology Park. Updated 2018. Accessed March 15,2018. https://qstp.org.qa/resident-companies/.

Sanger, David. “Under Pressure Dubai Company Drops Deal.” The New York Times. March 10, 2006. Accessed December 4, 2017. https://www.nytimes.com/2006/03/10/politics/under-pressure-dubai-company-drops-port-deal.html.

“Saudi Arabia’s Use of Soft Power in Iraq Is Making Iran Nervous.” The Economist. March 8, 2018. https://www.economist.com/middle-east-and-africa/2018/03/08/saudi-arabias-use-of-soft-power-in-iraq-is-making-iran-nervous

“Saudi-Yemeni Free Trade Zones and Reconstruction after Defeating Coup.” Saudi Press Agency. February 21, 2017. https://www.spa.gov.sa/1594386.

“Saudi-Yemeni Free-Trade Zone Would Benefit Both Countries, Says Business Leader.” Arab News. February 22, 2017. https://www.arabnews.com/node/1057961/business-economy.

Sharjah Business Feature. “Interview: Saud Salim Al Mazrouei.” The Report Company. Accessed November 8, 2020. https://sharjah.the-report.com/saud-salim-al-mazrouei/.

“Sheikh Mohammed Announces $3.4bn Investment in Dubai via China’s Belt and Road Initiative.” The National. April 26, 2019. https://www.thenational.ae/uae/government/sheikh-mohammed-announces-3-4bn-investment-in-dubai-via-china-s-belt-and-road-initiative-1.854063.

“Sleeping Giant.” The Business Year. Accessed January 19, 2017. https://www.thebusinessyear.com/oman-2015/sleeping-giant/review.

Suez Canal Economic Zone. “FAQ.” SCZone. Accessed November 11, 2020. https://www.sczone.eg/English/Pages/faqs.aspx.

Sulayem, Ahmed Bin. “Webinar on Charting the Post-Pandemic Future of U.A.E. Free Zones.” Public Webinar by the U.S.-UAE Business Council. September 23, 2020.

The Qatari Opposition (@CouncilQatar). Twitter post. January 26, 2018. 10:14AM. The tweet has subsequently been deleted, but the author retains a copy.

UNCTAD. World Investment Report 2017: Investment and the Digital Economy. Geneva: UNCTAD, 2017.

United Arab Emirates National Bureau of Statistics. Analytical Report on Economic and Social Dimensions in the United Arab Emirates. Abu Dhabi: National Bureau of Statistics. Published in April 2010.

World Free Zones Organization. “Background.” World Free Zones Organization. Accessed June 1, 2018. https://www.worldfzo.org/Pages/Background.aspx.

“Yemenis Await Revival of Free Trade Zone Project.” Saudi Gazette. February 22, 2017. https://saudigazette.com.sa/article/173504/Yemenis-await-revival-of-free-trade-zone-project.

Zhihua, Liu. “Chinese Firms Key to Growth for UAE Free Trade Zone.” China Daily. May 27, 2019. https://www.chinadaily.com.cn/a/201905/27/WS5ceb9e97a3104842260be06b.html.

Title: A Commercial Nexus Between East and West
Author: Robert Mogielnicki
Publisher: Springer International Publishing
Book: A Political Economy of Free Zones in Gulf Arab States
Print ISBN: 978-3-030-71273-0

Electronic ISBN: 978-3-030-71274-7

Copyright Year: 2021
DOI: https://doi.org/10.1007/978-3-030-71274-7_7

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Springer Professional "Technik"