INTRODUCTION

Development Services International Ltd was formed in the British Virgin Islands in June 2000 with the aim of assisting developing economies through the wealth of knowledge gained by its founder (Tony P Restall) who has worked in the Port, Free Port, Free Zone and Free Trade Zone environment for over 30 years. He is commonly referred to as Mr Freezone, by others who recognize his vast experience in Free Zone Operations and Management.

Tony Restall (a qualified Mariner – British Merchant Navy) first arrived in the Middle East in 1976 to head a New Port operation in the Iranian City of Bandar Abbas. An assignment that was supposed to last a maximum of two years turned into a new career path and resulted in Tony remaining in the Gulf for over 30 Years. As the Oil Rich Nations of the Arab Gulf began to realise that the economic benefits of an oil based economy were limited to the life span of the oil reserves they began to diversify and invest heavily in infrastructure. One such place and location was Dubai’s – Jebel Ali Port (a man-made super port of some 67 Berths and an investment by the Dubai Government of USD $2.5 Billion). At the time Tony was employed by the Sharjah Government (next Emirate to Dubai) and was fast carving out a name and reputation as a highly professional and productive business developer. This was recognised by the Dubai Government and they invited Tony to join the ‘Launch Team’ for the much heralded Jebel Ali Port. Dubai already had an existing and successful Port (Port Rashid – in Dubai City) and many doubted the sense and ability to succeed in such a competitive environment. Port Rashid had over 35 Berths and was by no means under pressure with utilisation. In fact the entire population of the UAE (in those days around 1.2 Million) could have been served by the one port. Of the seven UAE – Emirates every Emirate had its own port (Sharjah was the First Port to have two Ports – One inside the Gulf and One outside the strategic Straits of Hormuz).  

Much of the UAE Trade was based on ‘Transhipment Business’ which accounted for over 75% of its freight throughput volumes (serving Iran, Iraq and neighbouring Countries). The concept of establishing a Free Trade Zone in Jebel Ali Port was first muted and discussed in 1984 (The Year Tony Restall joined Jebel Ali Port – JAPCO). Traditionally, anyone wanting to establish or set up any business in the Middle East Gulf was forced to find a local partner/sponsor on 51%-49% shareholding. Many of these businesses were highly successful but were limited to an elite clan of established business families. A take or leave it attitude was prevalent and as business globally began to become more aggressive and competitive these arrangements did not suit the Multi Nationals and even the ‘Start Up’ entrepreneurs.

The  very thought that a foreign company could come to the Gulf and establish a 100% Foreign Entity within a Tax Free Regime threw the market into panic and all the influential business families lobbied the then Ruling Family headed by the late Sheikh Rashid Al Maktoum to stop this immediately. They labeled him ‘Crazy’ and that Jebel Ali Port & Free Zone was going to be an economic disaster (a huge White Elephant – an embarrassment to all Gulf Arabs). Luckily, Sheikh Rashid held his nerve and his ground and in 1985 the Jebel Ali Free Zone was launched. The rest is History as they say  and today Jebel Ali Port & Jebel Ali Free Zone are the core source revenue generators for DP World & Economic Zones World (a $10 Billion USD quoted conglomerate with interests in Ports, Free Zones, Shipping, Hotels and Aviation).

Tony Restall held the unique position of heading the ‘Commercial Team’ for Jebel Ali Port & Jebel Ali Free Zone – he recalls those early days and often wondered how we survived the very long working hours and effort we put in to get this venture off the ground. Jebel Ali Port & Free Zone held a unique market position but more importantly was supported by the Maktoum Family who emphasised the full support for its Sales Development Team. NO! – Was not in the dictionary – everything we touched in those days turned to ‘Gold’ really due in part to the leadership of His Excellency Sultan Bin Ahmed Sulayem -Chairman & CEO and His Highness Sheikh Mohammed Bin Rashid Al Maktoum.

Our Motto in those days – ‘CLOSE THE DEAL’ (at any cost).  As the Free Zone grew so did the movement of freight by Sea and Air (including the establishment of Emirates Airlines). Other areas of the market quickly developed – Tourism (people wanted to see this economic miracle for themselves). Hotels sprouted up and occupancy rates were achieving over 100%. Real Estate began to take off.

However, not everything was what it seemed! – The enquiry to closure ‘Ratio’ in those early days was only 5% (5 companies signed up for every 100 visitors). This was poor by any comparison due to the availability of qualified staff who understood the business and the ability by the Government to keep pace with the demand for space – Office/warehouse and land. Other Emirates soon spotted a market opportunity and nearly every Emirate launched its own Free Zone. Some did better than others in this very competitive market. As a result today some 23 other Free Zones now exist in the Emirate of Dubai all with very high occupancy rates.

Globally, other developing Countries and economies viewed the success of Dubai and aspired to emulate its success. This created a high demand for Management Expertise and Consultancy Services – to fill this demand and void Management Companies and Auditing/Accounting Companies attempted to provide global consulting expertise to these foreign Governments (very few were successful). It was at this stage that Tony Restall was approached to provide consultancy services. DSI Ltd was borne as a result of this demand. It was never intended to be a large multi-national conglomeration. However, it quickly evolved that those Governments and States that had invested in expensive (Big Name Consultants) were stuck between a Rock and a Hard Place. 

 Having the knowledge may be one thing but having the ability to implement the business model is something totally different. Part of the problem in introducing any Free Zone Regime is to convince Government that they are not ‘Losing Anything’. However, DSI Ltd took it upon itself to spend a great deal of time going from Minister to Minister in developed and developing countries explaining the overall benefits to the National Economy by introducing a Free Trade Zone regime. Getting any Minister to agree to anything is hard and time consuming but getting several and the entire cabinet to approve such a scheme is very hard indeed. A Free Zone Regime needs to be led from the very top as guidance and input will only produce limited results. The Goals associated with any Free Zone and Free Trade Zone is to Create ‘Employment’ Create ‘Shared Wealth’ and more importantly stimulates the economy. Free Zones rely on ‘Logistics’ and it is totally pointless and a waste of effort and time even considering establishing a Free Trade Zone that doesn’t have access to ‘Logistics’ – this could take the form of Sea Port Access, Air Port Access, River Port Access, Highway/Road Access or Railway Access. 

Equally important and equally ignored or overlooked by developing economies is the need for adequate Power (Electricity), Access to an alternative Power Source such as Natural Gas, Availability of High Speed Telecommunications, Access to a Pool of available Labour, Access to a sophisticated and transparent Banking System (without over regulation from the Central Bank).