Dubai Outsource Zone (DOZ): Tax-Free Outsourcing

Dubai Outsource Zone (DOZ) is the world’s first free zone dedicated to the outsourcing industry. DOZ offers a comprehensive infrastructure and environment for offshore service providers to set up global or regional hubs servicing the world market.

DOZ’s offering includes 100% exemption from taxes, arguably the world’s most reliable technology and communications infrastructure, a one-stop shop of support services and a fantastic working environment.

DOZ is the perfect base for both captive and third-party outsourcing companies to provide mid- and high-end services in areas such as finance, accounting, IT, payroll processing, engineering, R&D and design. It also serves as a centre for disaster recovery facilities for call centres, which are located offshore elsewhere in the world. DOZ caters to offshore requirements from Europe, the USA and the Middle East.

Key features of DOZ infrastructure, for which construction has started, include a plug-and-play centre that will provide a ready infrastructure for BPO service providers to set up their operations and start providing their services. It contains a pre-built infrastructure for outsourcing companies equipped with the latest technology that enables companies to get their business up and running from the moment they move into DOZ.

In addition, the development will include a research centre for companies that offer outsourced R&D services and a networking centre to facilitate collaboration and business opportunities within the community. A significant feature of the plan is a residential complex to be built by private investors. The DOZ plan also includes sports, leisure and retail facilities to provide professionals with the convenience of living and working in the same locality. In addition, this inexpensive residential facility will reduce personal relocation costs for employees of companies in the zone.

DOZ’s custom-made telecommunication facilities include reliable and redundant highbandwidth connectivity, IP telephony, Automatic Call Distribution (ACD), Interactive Voice Response (IVR), predictive dialing systems and satellite communication services, as well as technical and infrastructure support. These facilities form part of an infrastructure which helps offshore service providers start operations quickly with minimal upfront investment.

Work on the first phase of the infrastructure is scheduled for completion by the first quarter of 2006. It will create 250,000ft² of built-up area. The second phase will add another 200,000ft², to be ready by early 2007.

More than 60 leading offshore and onshore companies have expressed a strong interest in establishing facilities in DOZ. These include local companies with interests in the business process outsourcing, back office operations and the call centre sectors. Some others include US, European and Indian companies looking to relocate their existing operations from some of the established outsourcing destinations of the world to DOZ. A leading US based financial institution has already expressed an initial interest. DOZ is targeting a share of 5% of the global outsourcing industry. In five years, DOZ seeks to have between 200 and 300 companies.

DOZ is being built on a site adjacent to the Academic City project close to Emirates Road in Dubai. With world-class infrastructure, a range of business enabling services, access to skilled talent, huge cost savings, business-friendly regulations and a strategic geographical location, DOZ is all set to become one of the world’s leading outsourcing hubs.