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Dubai Auto Parts City Free Zone
The setting up of a zone for auto parts, called Dubai
Auto Parts City (DAPC), aiming to boost the re-exports
of auto parts from Dubai.
As per rough estimates, Dubai currently re-exports
Dh300 to Dh400 worth of spare parts annually.
Overall investments in the new 'Dubai Auto Parts City'
in Al Aweer could total Dh1 billion, according to senior
sources. The first phase alone, work on which would
start in six months, would entail investment of around
Dh400 million.
The project, with the active support of Dubai Customs,
is expected to be completed in 2004, by which time the
tenants will start moving in. Khatib & Alami has
been appointed as project consultants. The project has
been split into three phases.
The funding will be pulled in from the auto parts businesses
wishing to have a presence in the zone. Tenants will
have to pay Dh65 per square foot or plus.
The Dubai Government has provided 12 million square
feet of land. It will charge 0.40 fils a square foot
as rent from the tenants for the first 15 years.
Apart from spare parts, businesses with interests in
tyres, auto batteries, and accessories are also eligible
to take part.
Apart from auto traders and Dubai Customs, banks, clearing
and forwarding agencies, and transport companies will
have bases at the facility.
Dubai's trade in automotive parts is conservatively
valued at Dh3.5-5 billion annually. Around 50-60 per
cent ends up as re-exports.
The newly formed Auto Parts Merchants Group has embarked
on a membership drive. It hopes to rope in about 150
members within the next few weeks.
A 11-member committee headed by C.K. Majid as chairman
and Surinder Singh Khandari as vice-chairman has been
constituted.
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