Cement firms seek to tap Middle East potential, India

Cement firms seek to tap Middle East potential, India
Published: 02 September 2004

Indian cement and steel companies plan to set up units in the Gulf to tap the potential of over 10 free trade zones in the region. There is an increasing demands for cement and steel in the Middle East due to the infrastructure and development work being undertaken, reports BS. 
 
According to cement industry sources, Gujarat Ambuja and Sanghi Cements plan to set up units in the Gulf as raw materials are cheap there. 
 
The reconstruction of Iraq is a key reason for the spurt in demand for steel and cement in the Gulf. Due to India`s close proximity to the countries in the region, most of the steel and cement imports into the Gulf region are from India. Now, Indian companies are concentrating on setting up units in the region, rather then focusing on exports. 
 
The investment incentives provided by the free zone in the Middle East include 100 per cent foreign company ownership, 100 per cent import and export tax exemption, 100 per cent exemption from all commercial levies, 100 per cent repatriation of capital and profits, easy availability of lease.