Jafza Witnesses Remarkable 28% Increase In New Indian Businesses In 2023

The Jebel Ali Free Zone (Jafza) has emerged as a pivotal force in bolstering trade relations between India and the United Arab Emirates (UAE). In 2023, there was a notable 28% increase in the number of Indian companies establishing their presence in Jafza, bringing the total to over 1,500. This surge follows a series of trade events held in India aimed at fostering connections with potential businesses.

One of the highlights from these events was the introduction of Bharat Mart, slated for launch in 2026. This venture is designed to support Indian businesses in reaching markets across the Middle East, Africa, and Europe by providing retail space, warehousing, and logistics services. The project has already generated nearly 3,000 business leads in under a month, indicating strong interest and potential for growth.

Abdulla Al Hashmi, Chief Operating Officer at DP World GCC, expressed optimism about the initiative's impact. He stated, "We have received overwhelming interest from Indian businesses who are keen to establish a presence in Jafza and leverage our world-class infrastructure, network, and market access. With Bharat Mart, we will continue to revolutionise trade, opening new pathways that strengthen economic partnerships and facilitate seamless global commerce."

The Comprehensive Economic Partnership Agreement (CEPA), signed in May 2022 between the UAE and India, has played a significant role in enhancing trade ties. By eliminating tariffs for Indian traders, CEPA has created a more open and efficient environment for cross-border trade. In its first year, bilateral non-oil trade between the two nations reached US$50.5 billion, marking a 5.8 percent increase. The aim is to elevate non-oil trade to $100 billion by 2030.

DP World's India-UAE Trade Bridge initiative, launched in 2019, complements CEPA by streamlining shipping processes between the two countries. This initiative has been instrumental in reducing costs and time while opening new business opportunities in various sectors including manufacturing, food and beverage, pharmaceuticals, and healthcare.

Al Hashmi further commented on the collaborative efforts stating, "Despite the ongoing challenges in the international trade network, our collaborative initiatives with India have led to a notable increase in trade between our two nations. Jafza has been key to this success, and our focus now is on sustaining this growth by empowering Indian businesses and promoting a strong trade ecosystem, reinforcing our commitment to economic prosperity."

Jafza serves over 10,000 companies from 130 countries and accounts for 87 percent of the UAE’s non-oil trade with India. Indian companies are significant partners in Jafza, ranking second-largest in terms of trade volume and fourth in terms of trade value.

The free zone is also linked to Jebel Ali's new Agri Terminals facility, which commenced construction in February 2024. With an investment of AED550 million, this complex is set to become Dubai's largest multi-tenant facility for storing and processing grains for domestic consumption and export. The first phase of this project is expected to be completed in early 2025. This development underscores Jafza's comprehensive logistics solution that supports the thriving presence of Indian companies.

With inputs from WAM