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DMCC and Jafza announce warehousing partnership to boost trade

DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise and DP World, UAE Region, the leading trade enabler, through its subsidiary Jebel Ali Free Zone (Jafza), signed a Collaboration Agreement that will bring warehousing solutions and logistic services to member companies registered in the DMCC Free Zone.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, said: “Since its establishment almost thirty-five years ago, JAFZA has played a crucial role in making Dubai the global center for trade it is today. Under our agreement, DMCC member companies will gain access to all of JAFZA’s state-of-the-art warehousing and logistical services at no extra charge through a single point of contact. This collaborative agreement provides a strong incentive for DMCC-based companies to leverage the facilities available at JAFZA, while streamlining our business processes to support our customers.”

The agreement sees Jafza offer DMCC member companies the full use of their warehousing solutions and logistics services in Jebel Ali Free Zone, to encourage trading through the emirate. Furthermore, DMCC member companies will be exempt from registration and licensing fees related to this new service. 

Mohammed Al Muallem, Chief Executive Officer and Managing Director of DP World, UAE Region and CEO of Jafza said: “Collaboration is an essential part of growing together for our nation’s economy. Jebel Ali Free Zone is pleased to be offering a new benefit which will increase commercial activities through our facilities,” 

Al Muallem added: “We have excellent multimodal connectivity which will be a boon for member companies at DMCC wanting to import and export goods in and through Dubai. This, in turn, plays a key role in Dubai’s growth and both organisations show a strong commitment to reinforcing the UAE’s economic and commercial strength.”

Jafza and Jebel Ali Port constitute a world-class trade and logistics ecosystem that delivers integrated solutions to global companies doing business across a region of more than 3.5 billion people. As the leading business hub, Jafza and Jebel Ali Port contributed 33.4 per cent of Dubai’s GDP in 2017. The Free Zone generated trade worth $93 billion in 2018.

With the two free zones being in close proximity from one another, this collaboration will provide multiple advantages for DMCC member companies. Logistically, DMCC members will be able to trade under a free zone customs code that exempts them from any customs duties and VAT schemes. Moreover, member companies will have easy and direct access to the Jebel Ali port, which services more than 3.5 billion people across the region.

In 2018 alone, DMCC welcomed 1,868 new companies to its Free Zone, marking a 12 per cent growth compared to 2017. Collectively, the economic impact of DMCC member companies contributes over 10 per cent to Dubai’s GDP and positively impacts the long-term economic diversification strategy of the UAE.

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