Bangalore : After the US, Indian IT majors are eyeing the Middle East as a potential area for setting up their software development centres. Sharjah Airport International Free Zone, popularly known as the SAIF Zone is taking the lead in attracting Indian IT companies to invest in the Middle East by setting up units there. A slew of Indian IT majors will be setting up their software development centres in the SAIF-Zone in the coming days. IT major Infosys, which opened its development centre in SAIF Zone a week ago, will be followed by at least six other major IT companies from the country. SAIF-Zone director general, Taryam M Taryam told The Financial Express that a memorandum of understanding was being signed with Tata Consultancy Services for a development centre. Discussions with five other major companies were in an advanced stage and this would be converted into MoUs in the next few days, Mr Taryam said. However he refused to provide the financial details of the proposed MoUs. SAIF Zone, the showpieceof free-trade zones in the United Arab Emirates is on an aggressive mission to India, to woo new economy majors to set up their operations in the Gulf.
According to Taryam, out of the 500 companies operating in SAIF-Zone, 40 per cent are Indian companies, which include Godrej and Videocon. SAIF Zone has also introduced a new scheme to attract investors by offering a unique service called `investor project survey study one year visa'.
The visa is primarily designed to ensure that the investor can come to study the business environment, surrounding countries as well conduct a feasibility study about his product and services. The SAIF Zone would charge a fee of $2,466 and will provide two visas per company. The company would get a fully-furnished and air-conditioned office space of nine sq metres plus a telephone for the duration of the visa period. Mr Taryam was here in connection with the SAIF Zone's participation in the Bangalore IT.COM 2000.
Major facilities offered by SAIF Zone include 100 per cent foreign ownership, 100 per cent exemption from import and export duty, 100 per cent repatriation of capital and profit, no corporate or personal income tax, and permission to hire expatriate workers. SAIF Zone also promises licence for any venture in 24 hours, abundant and cheap energy besides lease up to 25 years renewable for a similar period. Mr Taryam said at present 35 per cent of the 5 million sq metre SAIF Zone was occupied. An investor in the zone has the choice to take a fully built-up area, warehouses or plots, where they can construct the building of their choice. SAIF Zone is also developing another 5 million sq metres of space in the next couple of years.
He said the initial estimate for the new project was around $10 million.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.