Jebel Ali Free Zone (Jafza) is a major contributor to the growing trade between India and the UAE.
There's been a significant increase in Indian businesses setting up there, with 28% more new companies in 2023 compared to the previous year. This resulted in over 190 new Indian businesses and a total of more than 1,500 Indian companies in Jafza. This growth follows trade events held in India to connect with potential businesses.
Bharat Mart, set to open in 2026, gained attention at recent trade events. This initiative aims to assist Indian businesses in accessing markets across the Middle East, Africa, and Europe by offering retail space, warehousing, and logistics services. With nearly 3,000 business leads generated in less than a month, the project has received positive reception.
Abdulla Al Hashmi, Chief Operating Officer, Parks and Zones at DP World GCC, elaborated on the platform's potential impact and said,
"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 gathering highlighted the thriving trade relations between the UAE and India following the signing of the Comprehensive Economic Partnership Agreement (CEPA) in May 2022. This landmark agreement, eliminating tariffs for Indian traders, has fostered an open and efficient environment for cross-border trade. In its first year, bilateral non-oil trade between the two countries reached US$50.5 billion, marking a 5.8 percent annual increase. The goal is to further elevate non-oil trade to $100 billion by 2030. DP World's India-UAE Trade Bridge initiative, launched in 2019, has played a significant role in enhancing the CEPA's effectiveness. By streamlining shipping processes, it reduces costs and time, creating new business opportunities in sectors like manufacturing, food and beverage, pharmaceuticals, and healthcare.
Al Hashmi added,
"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 currently supports over 10,000 companies from 130 countries, playing a pivotal role in facilitating 87 percent of the UAE's non-oil trade with India. Indian companies rank as the second-largest partners in terms of trade volume and fourth in trade value at Jafza. The free zone connects businesses to the recently initiated Agri Terminals facility in Jebel Ali, a AED550 million project slated to become Dubai's largest multi-tenant facility for storing and processing grains. The first phase is set for completion in early 2025, providing a comprehensive logistics solution to bolster the success of Indian companies in the region.
News Source: Emirates News Agency
