Dubai Airport Free Zone keeps growing with Iranian telco

Dubai Airport's free trade zone has found another international client - Iranian mobile distributor Faran Telecommunications.

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By  Alex Marklew Published  June 29, 2001

Iranian mobile telephone distributor Faran Telecommunications has agreed to expand its UAE presence with a light industrial unit in the Dubai Airport Free Zone.

Faran, which is Alcatel's distributor in Iran, is the country's largest mobile reseller, with a 35% share of the two million-unit market.

Yousuf Vejdander, Faran's chairman, hopes to take advantage of the Free Zone's perks in order to save money and boost efficiency.
"Alcatel is the number two brand in Iran," he said.

"We are already importing US $15 million worth of products from France via Dubai, where we have a branch office. Transhipping through the DAFZ would save us the four per cent duty we have to currently pay."

As well as zero taxation, the Free Zone also offers free movement of capital, full ownership, and, of course, close proximity to the airport, which saves further transport costs. Faran also said that his company already banks in Dubai, saving further tax revenue.

In the next five years Iran plans to expand its mobile network from the present two million GSM users to 15 million.

"There is tremendous scope for growth. We also have applied to become a private mobile operator," Vejdandar said.

"The unit will operate as a logistics centre for Alcatel products in the first phase," said Hadef Al Shamsi, DAFZ's commercial executive. "As operations grow, we would hopefully have another deal."

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