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Virtual Fujairah free zone to cut out costs
posted on 23/12/2009
 A virtual free zone in Fujairah, the first in the Emirates, will let foreign-owned companies do business in the UAE for a fraction of the costs charged by established free zones. Part of the Fujairah Creative City free zone, Virtuzone allows companies to submit web-based registration applications and issues trade licences within 10 days of receiving an application.
A start-up company can operate from Virtuzone for about Dh35,000 (US$9,528) a year, about half the cost of registration and basic office space in Dubai Media City, the country's best-known free zone. Registered companies can issue as many as five work visas for employees at a cost of Dh3,500 each.
While other media free zones permit self-employed media professionals to operate through freelance visas, they are restricted to performing specific roles such as design or camera operation. Virtuzone claims to offer businesses the chance to operate without such restrictions.
"We're using technology to be more efficient and pass those savings to our customers, to small businesses,” said Neil Petch, the chairman of Virtuzone. "We're a new kid on the block, not one of the big boys, so we know we have to work harder. If we can offer a transparent, fast-moving service that saves money, then we'll get plenty of business.”
The Virtuzone model lets international entrepreneurs operate their businesses from a home or office anywhere in the UAE. It represents a potentially disruptive force for other UAE free zones. None has announced similar plans.
Foreigners must form a minority partnership with an Emirati national to register a company in the UAE or rent physical office space in a free zone, such as Dubai Media City or Abu Dhabi's twofour54, significantly increasing their costs.
Representatives of Tecom, Dubai's free zone developer, and twofour54, the media zone, declined to comment. A Ras al Khaimah Media City spokesman could not be reached for comment.
The new zone would focus on companies in knowledge-based industries such as media, marketing, advertising and consulting, Petch said. "We don't offer general trading licences, so if you are looking to sell sugar we are the wrong place,” he said. "We obviously have a responsibility to ensure that the right kind of people and companies are coming in. – The National
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