Middle and large sized Indian printing and packaging companies that see themselves as international suppliers are increasingly looking to set up marketing and production facilities in international locations. It is inevitable that some will consider production locations in China or sales locations in Europe or North America. Some may find it easier and certainly closer to set up shop in the Middle East. As one of our friends said many years ago, “Since my employees are constantly migrating to the Gulf, I may as well set up shop there myself.” Needless to say he has been successfully commuting from Mumbai to the Gulf for more than a decade.

Dubai is the Middle East’s fastest growing city and is also the region’s commercial hub. Although already a place of incredible growth with perhaps 75 per cent of the world’s construction cranes at work, the city’s growth continues with its real estate, leisure and business projects attracting widespread international attention. The Dubai Metro will be the longest fully automated rail system in the world when it opens in 2009.

We again met Dubai’s International Media Production Zone’s executive director Hamad Huraiz, at drupa08 and then visited the IMPZ in Dubai to have a look. The Dubai government set up IMPZ under TECOM Investments (a member of the Dubai Holding group). The free trade zone is spread over 43 million square feet in the commercial heart of the city. Part of Dubai’s vision to develop itself into a global media hub (there is also a Dubai Media City), the IMPZ is meant exclusively for publishing, graphic arts, and packaging companies from around the world.

At the IMPZ offices in Dubai, Hamad Huraiz told us that, “the main aim of IMPZ was to create a unique cluster environment for media production companies from across the industry value chain, and from across the world, to interact and collaborate effectively.” For small and medium-sized businesses, the advantage is saving in time and cost as with sourcing requirements considerably reduced with vendors and suppliers located in the same place. This is a proven concept with examples such as Dubai Internet City -- a cluster of information technology businesses in close physical proximity in free trade zone. Huraiz explained that like the other free zones in Dubai, companies joining IMPZ can avail 100 per cent ownership and are exempt from all corporate and personal taxes including import taxes on machinery, equipment, raw materials and spare parts.

The IMPZ is on the Emirates Road close to the Jebel Ali port and the recently announced Jebel Ali Airport City. IMPZ has committed to an initial investment of approximately US$ 280 million for providing the infrastructure and it expects that its tenants and investors in the publishing, printing and packaging industry will invest a further
US$ 280 million in machinery alone. The Zone’s production cluster focusing on the printing and publishing industries provides infrastructure for various activities, available as leasehold land and distinct units for printing, production and warehousing. Printing companies can invest in multiple commercial units or have a combination of both land and production units. There are also 106 pre-built units in four clusters.

Media Innovations and Regraph Dietech, both Indian companies were among the first to begin operations at the pre built units. At IPEXSA 2007 in India, IMPZ also enlisted Accurate Printers and Pathfinder Graphics as likely investors. We visited the impressive facilities of ITP a business-publishing house who have recently relocated their UK headquarters to a new 44,200 square foot five storied building. Others already operational at IMPZ are GIMPEX (a paper company), Heidelberg, MAN Roland and KBA. Xerox Emirates has also recently decided to establish their base at IMPZ. The label and packaging segment at IMPZ caters mainly to luxury products such as perfumes and cigarettes.

Whether or not Indian printers migrate to Dubai, the IMPZ is a clear example of what a serious investment vision can accomplish. With all the ingredients – entrepreneurs, technology absorption skills, capital, a strong market and a huge labour force – there is an obvious need and opportunity to transparently establish specialised free trade zones near with infrastructure including energy, transport and communications.