Industry: Industry Region: UAE Transaction Price: $1 million Transaction method: Equity investment
Overview of the park
Park location
The China-Arab Capacity Cooperation Demonstration Park is located in Abu Dhabi, the capital of the United Arab Emirates, 60 kilometers and 80 kilometers away from Abu Dhabi City and Dubai City, with a total planned area of 12.2 square kilometers, which is a park within the Khalifa Industrial Zone Abu Dhabi (KIZAD), adjacent to Khalifa Port in Abu Dhabi.
The China-Arab Capacity Cooperation Demonstration Park (Phase I) is located in Area A of KIZAD Industrial Park, covering an area of 2.2 square kilometers (Area A is 51 square kilometers in total), about 4 kilometers away from the wharf; the China-Arab Capacity Cooperation Demonstration Park (Phase II) is located in Area B of KIZAD Industrial Park, covering an area of 10 square kilometers (Area B totaling 186 square kilometers). The demonstration park living service area is located in Area B, with a total area of 75,000 square meters and a capacity of 5,000 people.
Park advantages
The most competitive investment cost: Enterprises entering the park enjoy the lowest local land rental prices. The comprehensive cost of production factors such as water, electricity and labor is significantly lower than that of China. In addition, enterprises and individuals in the park are also exempt from VAT, income tax, consumption tax and various taxes and fees in intermediate links, truly achieving zero tax rate.
Optimal management services: The park is adjacent to the Khalifa Port Abu Dhabi, which is the most advanced automated port in the Middle East, providing convenient and direct cargo to the world. The park adopts the "one-stop service center" model common in Jiangsu Development Zone, making it more convenient for enterprises to invest in the park, as if they were in China.
Strongest financial support: The UAE is the financial center of the Middle East and capital flows freely. At present, a number of Chinese-funded financial institutions have established strategic cooperation with the park to provide all-round and efficient customized services for enterprises entering the park. The demonstration park financial service platform is being established, which will better provide financial support for enterprises entering the park in the future.
The best safety precautions: Both Chinese and Arab governments pay close attention to the construction of the park, and the governments of the two countries and provincial governments have signed relevant cooperation agreements, established coordination and promotion mechanisms, properly handled various problems, and ensured the safety of production and operation of enterprises.
Taxes: Park investment enterprises and individuals do not need to pay VAT, income tax, consumption tax and various taxes in the intermediary links.
Land: Rent is $7 per square meter per year, management fee is $3 per square meter per year
Cost: Electricity: $0.07 (trough) $0.09 per kWh (peak)
Water: USD 2.2 per ton
Natural gas: about $0.2-0.3 per cubic
Labor cost: about $700 per month (including food, lodging, transportation)
Transport and logistics: All goods imported into the GCC countries are subject to a 5% tariff upon arrival at the port of the first GCC country and then no longer on transshipment to other GCC countries.
Sea transport – Khalifa Port has a shoreline capacity of 2.5 million TEU and 12 million tons of bulk cargo. The second phase of Khalifa Port has been completed in April 2019, and the domestic routes to China, Africa and Europe will be successively adjusted to Khalifa Port for transit and consolidation.
Air Transport – The park is close to four international airports and is fully equipped to manage air cargo. More than 150 passenger flights a week operate between several cities in China and Argentina.
Road transport – A well-developed and convenient highway network connects Khalifa Industrial Zone with the UAE market and the wider Middle East market.
Finance: A number of domestic and foreign financial institutions and demonstration park financial service platforms will provide efficient financing and investment services for enterprises entering the park.
Living: As a wealthy country in the Middle East, the local business environment ranks among the highest in the world, and all living facilities are high-quality and perfect.
Innovation: The UAE is the No. 1 region in the Middle East in science and technology innovation and talent education, especially in Abu Dhabi, with the world's first artificial intelligence university (Mohammed bin Zayed University of Artificial Intelligence), New York University Abu Dhabi, Abu Dhabi University, Masdar Institute of Science and Technology, etc., providing abundant talent innovation support for enterprise investment.
Park positioning
Obvious industrial characteristics: the demonstration park mainly develops equipment manufacturing, fine chemicals, metal processing, warehousing and logistics and other high-end manufacturing industries, promotes the international development of Chinese enterprises, helps Abu Dhabi's economic diversification and transformation, and accelerates the rapid growth of the regional economy.
Perfect infrastructure: the demonstration park management service center has been put into operation in 2019, and the road pipe network, customized factory buildings and life service areas and other supporting facilities in the park will be completed in 2020, providing basic guarantee for enterprises entering the park.
Complete service functions: The demonstration park gives full play to the management service experience of Jiangsu Development Zone, establishes a high-quality coordination and service system, and provides a high-efficiency operation team to provide all-round public services such as administrative property, legal finance and market consulting for enterprises entering the park.
Eco-saving and friendly: The park actively refers to local environmental protection norms to improve various constructions, clarifies the environmental protection requirements of enterprises entering the park, strengthens the supporting environmental sanitation facilities, and strives to become an eco-friendly "green" park.
Park supporting services
The Park Management Service Center building was completed in June 2019 and will soon be put into use. Construction of the first manufacturing plants has begun. The first phase of the park's roads and pipe network has started, and supporting facilities such as employee dormitories and standard workshops are being declared and will be put into use from 2020.
Software-wise
Strive to give full play to the management experience of Jiangsu "-station service" park, establish a comprehensive, pragmatic and efficient service system, provide a full range of services for enterprises entering the park, handle various procedures and provide full-process consulting services.