3 ways KIZAD customers maintain competitive advantage
31 Mar 2020
The UAE’s capital city, Abu Dhabi, has always been a city with enormous economic potential. With its ambitious Vision 2030, and the more recently launched Ghadan 21 Programme, and the billions of dollars being invested for economic diversification and infrastructure development, Abu Dhabi is actively claiming its position as a global industrial and logistics and distribution hub.
"KIZAD’s cluster-based approach for the development of its industrial sectors benefits customers by placing support industries and customers and suppliers together, based on how best they can benefit one another. Value is created by leveraging anchor tenants and facilitating synergies and operational efficiencies; investors can utilise products produced by another within the zone."
- Edwin Lammers, Vice President – Commercial and Business Development, KIZAD
These factors alone make it the ideal location to invest in if you are looking to set up any business in the country to serve the growing markets in the GCC, Middle East, Africa and South Asia, if not across the globe. With an area covering two thirds the size of Singapore, and more than double that of Washington DC, Khalifa Industrial Zone Abu Dhabi (KIZAD) is naturally the first choice for setting up a business in the region. This is why supply chain and logistics industry leaders such as DHL, Agility, Al Futtaim, MOBH, GAC etc. are setting up operations there.
Here are three ways how KIZAD is keeping customer needs a priority with its KIZAD Logistics Park, now in phase 3.
Cost-effective Set-up and Operations
Abu Dhabi’s drive for diversification of the economy is proving to be a boon for businesses. The emirate offers significant incentives to encourage economic activity. Following the footsteps of the government, KIZAD has also created several incentives that make company set up and operations highly cost-effective. Low license cost, coupled with dual licensing (free zone and domestic economic zone licensing) as well as low utility costs. Electricity rates, for example, are the lowest in the country. Moreover, last year, KIZAD made 75 per cent of its services free of charge.
Business Predictability and Efficiency
Predictability of cost and the freedom to plan long-term is a critical factor in the success of any business. Understanding this need, KIZAD is offering warehouses in its Phase 3 with a Buy option of up to 30 years, a lump sum payment allows planning well into the future without having to worry about price variations at the time of lease renewals. More flexible short-term lease options are also available to help a business scale on demand.
The entity also strives to improve operational efficiency with services through online platforms like the Maqta Gateway. Established in 2016, Maqta Gateway is, a wholly owned subsidiary of Abu Dhabi Ports and is a central pillar of the company’s strategy to be a leader in the development of integrated, digital, global trade. With KIZAD services available to customers on the Maqta Gateway, the industrial zone is gradually eliminating the need for physical presence at its Customer Service Centre in order to avail of these services.
Thriving business ecosystem
From its meticulous master plan to the planning of industrial park and individual units, KIZAD is designed to benefit customers. KIZAD’s cluster-based approach for the development of its industrial sectors benefits customers by placing support industries and customers and suppliers together, based on how best they can benefit one another. Value is created by leveraging anchor tenants and facilitating synergies and operational efficiencies; investors can utilise products produced by another within the zone. Key examples include raw material suppliers, packaging solutions and printing services within the zone, which help improve efficiency and support the value chain. Excellent logistics infrastructure – deep-sea ports, airports, multiline highways and the upcoming rail network – support the demanding business operations of new and existing businesses in KIZAD. In a constant state of evolution, KIZAD continues to think outside the box by adding to its infrastructure with upcoming projects like on-site accommodation, a truck plaza and more projects in the works, conceived and planned with the ultimate aim of providing its customers a competitive advantage in the market.
Source: Gulf News