Due to its lack of oil reserves the Emirate of Dubai has traditionally relied on trade and commerce. It is little wonder then that Dubai has been a pioneer in the setting up of free zones in the Middle East region.The first and most successful of these free zones has been the Jebel Ali Free Zone (Jafza).
Established by DP World in 1985, Jafza has generated significant opportunities across multiple sectors by offering comprehensive logistics solutions, digital trade platforms, streamlined business processes, and access to DP World’s extensive range of services, thereby supporting customers throughout their business operations and supply chains.
In 2022 DP World’s Jafza witnessed the highest customer registrations in a decade, marking a 30% year-on-year growth, and taking the total number of companies to over 9,500.In 2022, DP World’s Jafza experienced its highest level of customer registrations in ten years, achieving a remarkable 30% increase compared to the previous year, which brought the total number of companies to more than 9,500.
LOGISTICS
The strategic location of Jafza, adjacent to Jebel Ali Port, Al Maktoum International Airport, and the Jebel Ali station of Etihad Rail, along with its extensive facilities comprising 92,100 square meters of warehouse space and 2,300 square meters of office space, positions it as the premier logistics hub for Dubai and the broader Middle East region. This year, the expansion of the free zone’s logistics area by an additional 46,000 square meters at Jafza Logistics Park will further support the increasing demand for warehousing, processing, and logistics capabilities in Dubai.
GLOBAL TRADE
Following the ratification of the Comprehensive Economic Partnership Agreement between India and the UAE, Jafza is playing a pivotal role in fortifying economic relations between the two countries and facilitating increased trade and investment.
Additionally, DP World and China Commodity City Group formed a partnership last year to establish the $153 million Yiwu Market, which will serve as the initial phase of a more extensive Dubai Traders Market situated in the Jebel Ali Free Zone.
Such proactive initiatives by Jafza are instrumental in broadening and enhancing Dubai’s capabilities and infrastructure for international trade.
FOOD SECURITY
Jafza significantly contributes to the stability of the food supply chain, currently accounting for more than 20% of the food and beverage trade value in Dubai.
The integrated food and beverage cluster at Jafza serves a wide range of sectors within food manufacturing and distribution. It hosts numerous prominent global brands, such as Unilever, Nestle, Heinz, McCain, Hunter Foods, Alokozay Group of Companies, Al Khaleej Sugar, and Bayara, among others.
CONSTRUCTION
Jafza has served as a significant catalyst for the expansion of Dubai’s construction industry over the years. From 2011 to 2021, the Jebel Ali port processed a total of nearly one billion metric tonnes of iron, steel, and construction materials, encompassing both containerized and breakbulk shipments.
E-COMMERCE AND DIGITAL LOGISTICS
Jafza and the digital trade and logistics platform Dubai Trade have established a significant partnership aimed at creating an optimal environment for e-commerce enterprises to flourish in the Middle East, with Dubai serving as their central hub. Over the years, Jafza has experienced substantial growth within its e-commerce sector, largely due to the strong infrastructure provided by Dubai Trade, which includes efficient last-mile delivery logistics.
Furthermore, the advanced technological solutions offered by Dubai Trade provide e-commerce businesses with a competitive edge in the marketplace. Jafza’s Data-Lake Zone utilizes cutting-edge digital technologies to support over 1,700 e-commerce firms, enabling them to maintain a leading position in the industry.
The implementation of IoT, digital systems, automation, and trade integration platforms has streamlined the logistics processes for Jafza’s e-commerce companies, enhancing their operations through superior data analytics and modern automated warehouses.
HEALTHCARE
Jafza is emerging as a premier center for healthcare manufacturing and distribution. Over the past four years, the trade value of enterprises within Jafza’s healthcare and pharmaceuticals sector has increased seven times.
As a comprehensive destination catering to the requirements of the healthcare industry, Jafza is home to 412 prominent healthcare and pharmaceutical firms from 60 nations, with over 120 of these companies offering logistics and freight services tailored to the healthcare sector.
THE STRENGTHS OF JAFZA
Since the establishment of the first modern economic zone in 1959 at Shannon, Ireland, free or economic zones have been a high-risk, high-reward ventures that require heavy investment, government vision and coordination, along with a strong infrastructure capacity to follow through and implement services on the ground.
On all the above accounts Jafza has made all the right moves over the past four decades and today has emerged as one of the leading free zones of the world.The number of industry verticals that Jafza caters to by offering world-class facilities and infrastructure, continues to grow with each passing year and the free zone has proven to be a true gamechanger for the economy of Dubai and the wider Middle East.
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