Jafza’s involvement with the food and beverage, construction and automotive sectors came into focus in recent months as trade shows and forums featured the hub’s best and brightest companies.

The spotlight turned on the free zone’s amazing growth and the economic clout it holds in the UAE and the Middle East what with regional and international companies setting up base within its confines and the hub’s status rising by the day with the entry of iconic firms and establishment of world-class logistics facilities around it. The Jebel Ali Port has witnessed a surge in cargo-handling capacity and the construction of a new airport and logistics city nearby places the free zone, particularly, and Dubai generally in the forefront of world cities facilitating trade and commerce.

It was no surprise that Jafza would be a key member of a high-level UAE delegation that participated in the Anuga food fair in Cologne, Germany, last month. Never to miss out on an opportunity to market the enclave, Jafza’s CEO and chief commercial officer of Economic Zones World, touched on how fast the Middle East was developing as a centre of trade and pointed to Jafza’s potential in serving the region’s markets

“Jafza is currently home to more than 7,000 multinationals, which include 120 of the Global Fortune 500. Many have established their regional headquarters at the free zone. Most serve West Asia, Africa, the CIS and Indian Subcontinent from their Jafza base,” he said proudly.

Anuga’s visitors were impressed with Jafza’s F&B credentials, the enclave boasting 428 leading F&B multinationals including such brands as Unilever, Kraft, Heinz, P&G, Mars and Gulf Food Industries. Two workshops it conducted, one on “Opportunities and Challenges in the Middle East Cold Chain” and the other on “Dubai, Gateway to MEA and Central Asia,” brought home to European and international businessmen the world-class solutions Jafza and Dubai offer through capable players in the industry and business-friendly government regulations.

THE CONSTRUCTION WAVE

Al Janahi: proclaiming growth and potential

It is now widely accepted that the UAE’s construction industry is recovering after the downturn, and a Jafza-organised Citizens’ Forum made it clear that now was the time to tap into the resources the hub possesses to provide solutions of any kind the industry would need as it proceeds to implement development projects in the UAE and beyond. It was also made clear that a presence in Jafza would help businesses a great deal in capturing a portion of the pie thanks to connectivity and costs. As many as 935 construction-related firms from all over the world have chosen Jafza as their base. According to Al Janahi, they totally generate trade worth Dh18 billion ($4.9 billion). The sector has advanced at a compounded annual growth rate of 7 per cent.

Just what’s in store for Jafza’s construction-related firms is really huge in terms of business to be had. Andrew Leach, general manager, construction, Tata Steel, said: “The total size of the construction sector market in the GCC region stands at Dh844 billion with the UAE accounting for 44 per cent of this market at Dh375 billion. Saudi Arabia’s share is Dh312 billion, Qatar’s Dh77 billion and Kuwait’s Dh37 billion with Bahrain and Oman accounting for Dh22 billion each.”

AUTOMOTIVE PROMISE

The automotive sector is in a continuous state of development with new technologies and processes bringing in better materials and solutions. Jafza, as a prominent base for some of the leading automotive firms, understands the need to adapt to changing market demands. “To maintain our leadership as a hub for the industry in the Middle East we need to keep ourselves abreast with the latest trends and rapidly changing market demands globally and in the region and respond appropriately,” says Al Janahi.  Citing a morale-boosting Frost & Sullivan report, the official said at a Customer Forum organised by Economic Zones World that the positive outlook provides huge growth opportunities for Jafza-based automotive companies. The free zone currently houses more than 500 automotive firms and the sector generated trade worth $4.2 billion in 2012, up 15 per cent on 2011. In the last 10 years the number of companies operating in the sector has grown seven-fold. Going by the momentum generated in recent years, prospects look good for Jafza-based entities. The Frost & Sullivan report says total consumption within the automotive aftermarket in the GCC states in 2012 posted more than 15 per cent growth to reach $7.5 billion, of which the UAE’s share was $2 billion. The report predicts growth of between 25 and 30 per cent across parts and accessories, tyres and tubes, batteries and lubricants over the next five years.

NEW TENANTS

Companies that commenced operations in the free zone during the past one year were invited to a forum for new tenants recently in a move to build customer relations. They were acquainted with business opportunities that await them and how the free zone would help them achieve their vision. Al Janahi said ongoing investments in infrastructure, the continuous expansion in the port and free zone, and Jafza’s unique position at the heart of a multi-modal logistics environment offered an unparalleled mix for growth and prosperity to the hub’s operators.

Jafza is keen on hosting customer gatherings as they offer networking opportunities while allowing the free zone to understand issues tenants face as a first step towards serving them better.

Some of the new companies at Jafza are leading brands such as Casio, Dunlop Beltings, Hyundai Welding, IAL Group, APR Energy, Unatrac, Buhlmann and CJ Korea Express. More than 150 well-recognised brands names set up operations in the free zone in the first six months of this year.