Sharjah Airport Intl Free Zone - Warning
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Sharjah Airport Intl Free Zone - Warning
Whether it is a victim of its own success or of poor planning or even incompetence is still under debate, but given that the Sharjah Airport International Free Zone (SAIF) is directly linked to the ruler’s family, the type of infrastructural problems that are being used as explanations for otherwise inexplicable delays in the ongoing expansion project indicate the latter.
The following should be a warning to anyone considering investing here.
We have been operating in the SAIF Zone for around six years and almost two years ago signed up for a new warehouse facility in the expansion zone located between the northern end of the runway and Emirates Road, our sector being P.
Initially, the date of occupation was set at early July 2006, but already in May there were rumours of this date being illusionary, as the sub-station for this sector had not yet been completed. Then, after completion of the sub-station, the date was repeatedly shifted to first August, then to before Ramadan, then to immediately after Ramadan, as there is apparently no grid power available. Also, there is still no water supply to this part of the SAIF Zone.
As a result, some 300 (three hundred) companies, are still without their promised factory and warehousing facilities. Initially, the SAIF Zone administration promised temporary facilities, but in view of the gigantic numbers of companies involved, this promise was one that could never be kept from the start and no one ever was allocated such temporary operating space.
The latest news was that within this week (i.e. by today, given that the working week in UAE is Saturday to Thursday) all affected investors should have been given a proposal under which they would have been allowed occupancy of all factory/warehouse space within their booked buildings at (in the case of leases) 25% of the normal rent, but without any utilities such as power or water being hooked up. They would also not be allowed to use any office space within their buildings under this arrangement, even if they generated their own power. This proposal has not been forthcoming.
Caveat emptor!
The following should be a warning to anyone considering investing here.
We have been operating in the SAIF Zone for around six years and almost two years ago signed up for a new warehouse facility in the expansion zone located between the northern end of the runway and Emirates Road, our sector being P.
Initially, the date of occupation was set at early July 2006, but already in May there were rumours of this date being illusionary, as the sub-station for this sector had not yet been completed. Then, after completion of the sub-station, the date was repeatedly shifted to first August, then to before Ramadan, then to immediately after Ramadan, as there is apparently no grid power available. Also, there is still no water supply to this part of the SAIF Zone.
As a result, some 300 (three hundred) companies, are still without their promised factory and warehousing facilities. Initially, the SAIF Zone administration promised temporary facilities, but in view of the gigantic numbers of companies involved, this promise was one that could never be kept from the start and no one ever was allocated such temporary operating space.
The latest news was that within this week (i.e. by today, given that the working week in UAE is Saturday to Thursday) all affected investors should have been given a proposal under which they would have been allowed occupancy of all factory/warehouse space within their booked buildings at (in the case of leases) 25% of the normal rent, but without any utilities such as power or water being hooked up. They would also not be allowed to use any office space within their buildings under this arrangement, even if they generated their own power. This proposal has not been forthcoming.
Caveat emptor!
