Free Trade Zone Essay Example
Free Trade Zone Essay Example

Free Trade Zone Essay Example

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  • Pages: 3 (628 words)
  • Published: April 12, 2017
  • Type: Essay
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A Free Trade Zone is an important area for growth and development in a state where there is poor capacity for local participation. The Ras Al Khaimah Free Trade Zone was established within this overall paradigm to attract commerce. This also enjoys an ideal geographic location and with Saqr Port in close proximity it positions RAKFTZ as the port for all northern markets. Research RAK Free Zone Business: Ras Al Khaimah Free Trade Zone authority has a vision of becoming, “the largest, most effective and most environmental friendly free zone in the Gulf Region”.

The ultimate aim is to be a destination for welcoming businesses. Thus the company seeks to offer a host of services to clients to include assisting them with marketing services, e-registrations, referrals, showrooms, government incentives, opening new markets and incubation c

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enters. The Problem Given the vision and mission of the RAK Free Trade Zone, the authority is facing a problem of shortage of skilled employees. UAE population is low, approximately 4. 10 million as per the 2000 census.

Thus more than 80 percent of the residents in the country are foreigners and 98 percent from the private sector are non UAE nationals. While Emiratization of the UAE workforce has been established as an objective, quotas are implemented only in banking, 4 %, insurance 5 % and trade 3 % for companies which are employing more than 50 workers and in federal government jobs. Finding suitable employees to man the various assignments in the FTZ is thus a problem. More over as the FTZ authorities alone can sponsor applications for visas; this is creating problems of speedy induction of labour.

There are some investors who

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only speak limited languages, such as: Iranian, Hindi and French, so they need some employees, who speak these languages. On the other hand they also prefer more Emirate employees from United Arab Emirates. Analyzing the problem The requirement of employees in the Free Trade Zones and availability is conflicting. Given the low level of population and high aspirations for growth as well as deficiency in skill levels, there is a need to seek labour from outside the country.

This can ideally come from South Asian countries as well as from Middle East states such as Lebanon. However terms and conditions for work appear to be highly arbitrary. This is acting as a disincentive for employment in the FTZ. Monetary incentives could be considered as adequate; however these are not sufficient considering the large number of encumbrances that are imposed on workers coming to the UAE. Similarly restrictions on visa to families are also acting as a disincentive.

Discuss the solutions Solution. The solution has to be multifarious to include tapping talent from more number of countries, seek competent people, create better working conditions, provide special work permits, higher scales of emoluments and liberalize visa. The RAK FTZ is an ambitious project. To fulfill the vision and mission more competent people have to be attracted for which larger number of countries should be tapped. Liberalized work norms are essential as this will attract better and wider variety of talent. This in turn will also widen the pool of people who will be willing to work in the FTZs thereby enhancing availability.

In addition having special work permits for RAK FTZs should be considered. The whole issue would also involve higher

scales of pays and perquisites and may finally boil down to liberalizing visas to attract the best talent. Conclusion RAK Free Trade Zone is an ambitious project which is set to place the state into a high level integrated business and e commerce environment. To attain the desired end, high level of skilled work force is essential and to attract which norms of labour and employment have to be reviewed. A more liberal labour environment will endear the high skilled workers to RAK.

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