BAGHDAD: Jebel Ali Free Zone (Jafza), the flagship free zone entity of Dubai and an established trade and logistics hub for the greater Middle East region comprising West Asia, the CIS, Africa and the Indian Subcontinent, has emerged as the most favoured investment destination for Arab investors. The total capitalisation of Arab companies in Jafza has hit AED 977 billion in the first half of 2015.
The UAE, Egypt, Lebanon, Iraq, Jordan, Kuwait, Saudi Arabia, Syria, Sudan and Oman are the top ten investing countries in the Free Zone.
Jafza is currently home to 2651 companies coming from 18 countries in the Arab World. The UAE leads the block with 1,365 companies followed by Iraq, Egypt, Jordan, Lebanon and Saudi Arabia with 520, 121, 112, 110 and 100 companies respectively.
The companies from the Arab World in Jafza together employ 74,000 people. UAE companies rank top employer with 56,000 jobs followed by Jordan – 4500, Kuwait -2200 and Saudi Arabia with 2,100 jobs.
HE Sultan Ahmed Bin Sulayem, Chairman, DP World and Economic Zones World said, “The emergence of Jafza as the most favoured investment destination for Arab investors can be attributed to the Free Zone’s investor-friendly seamless eco-system and its key offerings including outstanding multi-modal connectivity offered through Jebel Ali Port, Al Maktoum and Dubai International airports which are located at the two ends of the Free Zone. The top ranking of Dubai in the International Competitive Index continues to attract investors to the Free Zone.”
“The economic and political stability and ease of operation are the two key requirements of any investor which Jafza as a hub had been offering for years. In Jafza and DP World we are fully committed to provide our customers facilities and business environment which allows them to achieve all their growth aspirations.”
The bilateral trade between Jafza and Arab Countries grew by 61 per cent in the last five years growing from AED 64 billion in 2010 to AED 105 billion in 2014. The growth reinforces Jafza’s status as the trade and logistics hub since most of the companies in the Free Zone serve all the regional markets from their Free Zone facilities.
The imports from the Arab countries to Jafza in 2014 amounted to AED 14.2 billion while re-exports and exports from Jafza to these countries totaled at AED 91 billion.
In terms of products electronics with AED 56 billion lead the bilateral trade which is followed by mineral products-AED 19 billion, chemicals and allied products- AED 20 billion, food products-AED 4 billion, automobile and transport equipment-AED 3.8 billion, textile-AED 3.4 billion and base metals- AED 2.7 billion.
Commenting on the numbers Ibrahim Mohamed Al Janahi Jafza Deputy CEO and Chief Commercial Officer said, “These numbers reinforce Jafza as the logistics hub of the region. Most of the multinationals located in Jafza use the free zone platform to serve all the key markets in the region. Most of the Arab countries are using Jafza as a sourcing centre for their requirements.”
The main exports from Arab countries to Jafza includes mineral products at AED 10 billion followed by chemicals-1.2 billion and machinery, electrical and electronics equipment-AED 1 billion.
The main exports from Jafza to Arab countries constituted foodstuff-AED 781 million, machinery, electrical and electronics equipment-AED 775 million and metal products-AED 730 million. The main re-exports from Jafza to Arab countries included machinery, electrical and electronics equipment- AED 54 billion, mineral products-AED 8.3 billion, chemicals-AED 6 billion, vehicles and transport part equipment-AED 3.5 billion, textiles-AED 3.3 billion and foodstuff-AED2.7 billion.
