UAE- Total capitalisation of Arab companies in Jafza hits AED977 billion

DUBAI 29th September 2015 (WAM) -- Jebel Ali Free Zone Jafza has emerged as the most favoured investment destination for Arab investors. The total capitalisation of Arab companies in Jafza has hit AED977 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 from 18 countries in the Arab world. The UAE leads the block with 1365 companies followed by Iraq Egypt Jordan Lebanon and Saudi Arabia with 520 121 112 110 and 100 companies respectively.

The Arab world companies together employ 74000 people. UAE companies rank top employer with 56000 jobs followed by Jordan with 4500 Kuwait with 2200 and Saudi Arabia with 2100.

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 and Al Maktoum and Dubai International Airports which are located at the two ends of the free zone. Dubai's top ranking in the International Competitive Index continues to attract investors to the free zone."

Bilateral trade between Jafza and Arab countries grew by 61% over the last 5 years growing from AED64 billion in 2010 to AED105 billion in 2014. The growth reinforces Jafza's status as a trade and logistics hub as most of the companies in the free zone serve all the regional markets from their facilities.

Imports from Arab countries to Jafza in 2014 amounted to AED14.2 billion while re-exports and exports from Jafza to these countries totalled at AED 91 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 include mineral products at AED10 billion followed by chemicals 1.2 billion and machinery electrical and electronics equipment at AED1 billion.

The main exports from Jafza to Arab countries constituted foodstuff at AED 781 million machinery electrical and electronics equipment AED775 million and metal products AED730 million. The main re-exports from Jafza to Arab countries included machinery electrical and electronics equipment AED54 billion mineral products AED8.3 billion chemicals AED6 billion vehicles and transport part equipment AED3.5 billion textiles AED3.3 billion and foodstuff AED2.7 billion Saudi Arabia is Jafza's top trade partner from among the Arab countries with Jafza-Saudi Arabia trade at AED27 billion constituting imports of AED3 billion and exports and re-exports of AED24 billion. Jafza-Saudi Arabia trade has seen a 35% increase since 2010.

The UAE is Jafza's second largest trade partner with a total trade of AED22 billion posting a growth of 366% since 2010. Iraq Kuwait and Egypt are Jafza's third fourth and fifth largest trade partners with their total trade of AED14 billion AED9 billion and AED8 billion respectively. These three countries have posted growth of 16% 91% and 235% respectively over the last four years.