Sharjah Ruler announces new tech-free zone in Kalba

Sharjah Ruler Announces Establishment of New Communication Technologies “Free Zone” (Comtech) in Kalba

Dr. Sheikh Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah, has issued an Emiri Decree declaring the launch of a free zone dedicated to communication technologies in the city of Kalba. This new zone will be named the “Sharjah Communication Technologies Free Zone” (Comtech).

The zone will have the necessary legal personality and capacity to accomplish its goals and exercise its authority. It will enjoy financial and administrative independence and will report directly to the Sharjah Communications Technologies Authority. The specific location, borders, and geographical area of the zone will be determined by the Ruler of Sharjah.

Objectives of the Sharjah Communication Technologies Free Zone

The Decree outlined several objectives for the new free zone, aimed at bolstering Sharjah’s position in the communication technologies sector and contributing to its economic development:

1. Enhance the Emirate’s Position in Communication Technologies and Contribute to its Economic Development: The establishment of the Comtech free zone is designed to significantly boost Sharjah’s standing in the global communication technologies sector. By fostering innovation and providing a supportive environment for tech companies, the zone will contribute to the overall economic growth of the emirate.
2. Establish an Attractive Hub for Investments, Partnerships, and Skilled Professionals in Communication Technologies: The free zone will serve as a magnet for investments, attracting both local and international companies. It will also be a hub for forming strategic partnerships and drawing skilled professionals in the communication technologies sector.
3. Support and Promote the Communication Technology Sector to Elevate the Emirate’s Global Standing: The zone aims to provide robust support to the communication technology sector, helping to promote Sharjah as a leading player in this field on the global stage.
4. Create a Conducive Environment for Investing in Technological Transformation, Artificial Intelligence, and Future Technologies: The free zone will offer an ideal environment for investments in cutting-edge technologies such as artificial intelligence, ensuring that the emirate remains at the forefront of technological advancements.
5. Aid Technology Firms, Information Centres, and Artificial Intelligence Institutions: The zone will provide substantial support to technology firms, information centres, and AI institutions, fostering growth and innovation within these sectors.
6. Develop National Talent in Science and Attract International Professionals: One of the key goals of the zone is to nurture national talent in the fields of science and technology while also attracting international professionals who can contribute to the growth and development of the communication technologies sector in Sharjah.

Powers and Responsibilities of the Sharjah Communication Technologies Free Zone

The Decree specifies that, taking into account relevant federal and local legislation, the region shall exercise the following powers to achieve its objectives:

1. Formulating Legislation, Policies, and Strategic Plans: The zone will develop legislation, policies, and strategic plans in line with approved standards and practices, presenting them to the Council for appropriate action.
2. Ensuring Compliance with International Agreements and Treaties: The zone will ensure that all activities comply with international agreements and treaties to which the UAE is a party.
3. Developing and Implementing Communication Technology Policies and Strategies: The zone will create and execute policies and strategies to advance the communication technologies sector within the emirate.
4. Granting Licences to Companies for Marine and Land Cable Extensions: The zone will have the authority to issue licenses to companies interested in extending marine and land cables for communication technologies.
5. Establishing Data Centres: The zone will facilitate the establishment of data centres for companies operating within its boundaries.
6. Providing Technical, Administrative, and Skilled Personnel: The zone will supply companies with technical, administrative, and skilled personnel as needed, based on agreed-upon conditions.
7. Seeking Support from Relevant Authorities: The zone will seek administrative and technical assistance from relevant authorities and collaborate with experts, consultants, and specialised agencies.
8. Formulating Memorandums of Understanding, Partnerships, and Agreements: The zone will develop memorandums of understanding, partnerships, and agreements at local, regional, and international levels, subject to Council approval.
9. Acquiring, Leasing, and Owning Assets: The zone will have the authority to acquire, lease, and own both movable and immovable assets necessary for fulfilling its obligations and investing in permissible fields according to applicable legislation and regulations.
10. Exercising Any Other Powers Delegated by the Ruler or Council: The zone will carry out additional responsibilities as assigned by the Ruler or Council.

Governance and Administration of the Free Zone

Under the Decree, the zone will be overseen by the Chairman of the Sharjah Communications Technologies Free Zone. A director will be appointed for the zone by the Ruler or the Council, as necessary. The director will be supported by an adequate number of employees and experts, as per the organisational structure of the zone. The director holds the necessary authority to administer the zone’s affairs and make essential decisions to accomplish its objectives. Specifically, the director possesses the following powers:

1. Formulate a Comprehensive Policy for the Zone: The director will develop a comprehensive policy for the zone and present it to the President for approval by the Council.
2. Oversee the Execution of the Zone’s Programs and Projects: The director will ensure the successful implementation of the zone’s programs and projects after receiving approval from the President.
3. Develop Plans for Growth: The director will create plans to ensure the growth of work in the zone and for its employees.
4. Draft Organisational, Administrative, and Financial Regulations: The director will prepare the necessary regulations and submit them to the President for approval after the Council’s endorsement.
5. Monitor Progress and Compliance: The director will oversee the progress of work in the zone, ensuring compliance with relevant laws and regulations, and issue necessary decisions, instructions, and circulars.
6. Supervise Budget Disbursements: The director will supervise the disbursement of funds from the zone’s budget within the allocated appropriations, following established procedures.
7. Establish Committees: The director will establish committees and define their scope of work and operating procedures.
8. Execute Contracts and Agreements: The director will execute contracts, agreements, memorandums of understanding, and partnerships on behalf of the zone after receiving approval from the president and the Council.
9. Undertake Legal Actions: The director will undertake all necessary legal actions required for the zone to carry out its operations within the confines permitted by law.
10. Recommend Organisational Structure: The director will recommend the organisational structure and present it to the president for necessary action.
11. Appoint Employees: The director will appoint employees to manage and operate the zone, delineating their responsibilities and duties with the president’s approval.
12. Coordinate with Authorities: The director will coordinate with federal and local authorities/entities, institutions, and other free zones to accomplish the zone’s established objectives.
13. Delegate Authority: The director may delegate some of their authority to senior employees in the zone, in accordance with the emirate’s current legislation.
14. Represent the Zone: The director will act as the zone’s representative before the judiciary and government agencies and manage its relations with external entities. The director may authorise any other individual or entity to represent the region before the judiciary.
15. Submit Regular Reports: The director will submit regular reports on the zone’s activities to the president.
16. Fulfill Assigned Tasks: The director will fulfill any other tasks assigned by the president.

Additional Provisions

The Decree states that the zone’s organisational structure will be issued by Emiri Decree upon the president’s proposal and the Council’s approval.

The Decree also covers provisions regarding financial resources, the yearly budget, exemptions, inspection powers, exemption from laws, fees, fines, non-accountability for debt, as well as enforcement and publication.

The Sharjah Communication Technologies Free Zone (Comtech) is set to be a significant milestone for Sharjah’s economic and technological landscape, fostering innovation, investment, and talent in the communication technologies sector.