Koyo Singapore Bearings Ltd. (Japan, a division of JTEKT) has opened an operation in the Dubai Airport Free Zone (DAFZ; website).

A large, tax-exempt industrial area within the Dubai International Airport grounds, the Free Zone has reportedly attracted more than 1,400 foreign-owned businesses. It is designed for offices, warehousing and light manufacturing.

Koyo said it intends to use the wholly-owned Dubai operation as a base for expanding bearing sales and market share across the Middle East. DAFZ is also a jumping-off point for access to other Asian, African and Gulf markets.

Tadaaki Fujiwara, tasked with starting up the operation for Koyo, said: "We have been in the Middle East market for several years. This move to the Dubai Airport Free Zone is a major step toward providing a higher level of service to our customers in the region."

DAFZ is well-developed and self-contained, with infrastructure designed specifically to attract foreign-owned company divisions. It offers security services, access to conference rooms, a lecture hall, restaurants, banks, travel arrangements, and other services.

Opened in 1986, DAFZ is growing quickly; in the first quarter of 2008 alone, it recorded a 42% jump in the number of businesses operating there. To meet demand for space, it is running three expansion programs concurrently.

NSK Middle East also has a warehouse and office in DAFZ.

The good part
In order to attract business to Dubai, DAFZ is building the leased space in multiples of 350 square meters. Each unit is completely finished and insulated, set up for separate warehousing and office space, air conditioned, with kitchen and bathroom facilities, loading ramp and adjacent parking for four vehicles -- all for AED 1000 per year, or just over USD $272. Multiple units are combined as needed. Utilities are billed separately and have a similar pricing model.