122 New Companies From 33 Countries Set Up in Jafza During Q1 2017
Jebel Ali Free Zone (Jafza), a company of global trade enabler DP World and a major destination for foreign direct investment in the Middle East, Africa and CIS states, registered 122 new companies from 33 countries during the first three months of 2017. The JAFZA is the perfect choice to commence the business in UAE as the number of the freezone is continuously within the period. Sultan Ahmed bin Sulayem, Group Chairman and CEO DP World, said: "The number of companies reflects investor confidence in Jafza services and facilities in a wide range of industry sectors."
Regional Growth and Origin of Companies
More than half (55 percent) of new companies were from the Middle East region, followed by 22 percent from Asia-Pacific, 16 percent from Europe, 4 percent from Africa and 3 percent from North America. The table below illustrates the distribution of these new companies by region:
| Region | Percentage of New Companies |
|---|---|
| Middle East | 55% |
| Asia-Pacific | 22% |
| Europe | 16% |
| Africa | 4% |
| North America | 3% |
Business Sectors and Market Performance
Of the 122 companies registered, 20 percent were in the general trading and retail sector, followed by 11 percent in steel and building materials, with 10 percent each in the automotive & transport, equipment, machinery and services sectors. Jafza’s innovative approach is in line with the vision to adopt international best practice in the business sector to attract foreign investments to the UAE and Dubai.
Infrastructure Expansion and Occupancy Rates
Mr. Bin Sulayem noted that as a result of the business expansion by existing companies and the inclusion of new ones, Jafza has leased more than 158,000 square meters of space with plots of land totaling 148,000 square meters and warehouses 5,700 square meters. The current occupancy status is as follows:
- Staff accommodation: Exceeded 95 percent
- Small offices and workstations for SMEs: 98 percent
- Warehouses and light industrial units: 82 percent
- Showrooms: 78 percent
- Office space: 66 percent (following the addition of Jafza One)
In cooperation with the Roads and Transport Authority (RTA), Jafza is building another six-lane two-way bridge to link Jafza North and Jafza South, to ease traffic on the Dubai Logistics Corridor. Jafza also began the construction of a 150,000 square meter residential complex for workers, with 13 buildings and 3,536 rooms.
Operational Re-engineering and Digital Services
Jafza is working on an integrated project to re-engineer its operations and services. In Q1 2017, it completed the automation of more of its services with customers no longer required to physically visit the service centre. These can now be completed through the Group’s Dubai Trade portal or by calling the Jafza Call Centre. The Free Zone has also implemented a digital signature system so that the documents can be directly emailed to customers’ registered email address.
Setup and License Options in the World's Largest Free Zone
The JAFZA isn’t just limited to the size but the companies across the world have put down their faith and conduct their operations. There are three types of companies in JAFZA:
- Free Zone Establishment: A single shareholder from an individual or company.
- Free Zone Company: If the number of shareholders is between 2 and 50.
- Branch: When the business is established outside the JAFZA and sets up its branch inside.
There are a total of 6 licenses available for setting a businesses in JAFZA:
- Trading License (for trading activities)
- Industrial License (for manufacturing activities)
- National Industrial License (manufacturing activities with 51% national ownership)
- Innovation License (focused on developing new products and services)
- E-commerce License (for trading goods and services using electronic means)
- Service License (for service-related activities)
The benefits provided by the free zones include 100% foreign ownership without any restriction, zero per cent tax and duties, and freedom of complete capital repatriation.
