Tuesday, 11 September 2018 17:53

Jebel Ali Free Zone – a one-stop business hub for the global automotive industry

Written by Ahmed Al Haddad,

By Ahmed Al Haddad, COO, Jafza


Jebel Ali Free Zone (Jafza), the Middle East's premier business hub and global trade enabler DP World’s flagship trade centre, handled the lion's share, accounting for more than Euro 9.3 billion (US $10.8 billion) worth of automotive trade in 2017.

Jafza asserted its position as the hub of choice for the industry handling automotive trade worth Euro 9.3 billion in 2017, more than 21 per cent of Dubai’s total trade value of Euro 43.2 billion for the sector over the same period.

Jafza handled 1.06 million tons of Dubai’s total of 5.2 million tons for the sector. Over 800,000 vehicles moved through Jebel Ali Port last year, with exports to more than 175 countries. The sector accounts for 8% per cent of the business generated in the free zone.

At Automechanika Frankfurt, Jafza is exhibiting its range of services including customised platforms and logistics solutions - from storage to distribution and transportation management and customs brokerage.

The exhibition is taking place at a time of difficulty for the global automotive industry. Germany, which accounted for 55 per cent of total EU car exports in 2017, is a leader as the industry navigates its way through the uncertainties.

At Jebel Ali, we've established one of the world's leading business environments that enables all in the automotive supply chain to work together more efficiently. More than 540 companies, including many from Germany and other EU countries, have established their regional business operations in Jafza attracted by the business value on offer.

Integrated automotive logistics services cover everything from vehicle and parts storage to packaging, palletization, customs brokerage and modal conversion.

SMART Technology also underpins our global operations.  The integrated Jebel Ali Port and Free Zone area is a centre for innovation and cutting edge technology such as gate automation, remote controlled cranes, paperless e-transactions through an integrated portal, Dubai Trade, and rooftop solar power.

Dubai is an international hub for knowledge-based, innovative and sustainable industrial activities. We’re confident our German partners, present and future, will find their move to Jebel Ali a strategically beneficial business decision.

With market access across three continents, it is a marketplace in its own right. The many capabilities of the Port are supported by sea-land-air connectivity through the Dubai Logistics Corridor.

Jebel Ali offers 140 direct ports of call, 80 weekly services and extensive hinterland road networks to reach every GCC market in hours.

For investors, 100 per cent ownership, full repatriation of business revenues and a cosmopolitan lifestyle are major attractions.

An added value is the opportunity to tap into lucrative new markets, from Saudi Arabia to India.

The UAE will continue to be one of the most robust automotive markets in the GCC, thanks to factors such as low fuel costs, low import tariffs, high per capita disposable income, and a favorable tax regime.

Attractive insurance and finance options make it relatively easy for consumers to buy cars in the UAE.  The outlook is particularly favorable for the sale of luxury cars, electric and hybrid vehicles, and motorcycles.

Approximately 80 percent of the UAE automotive market is in passenger cars and the remaining 20 percent is in commercial vehicles (trucks, vans and buses).

Jafza is currently home to more than 7,500 companies, including nearly 100 of the Global Fortune 500.

Jafza invites the German automotive industry to join and benefit from it.