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Dubai’s Jebel Ali Free Zone (Jafza) saw a huge influx of businesses from major markets like China and India last year, as the UAE’s non-foreign trade grew to record levels despite global challenges.
The free zone recorded a 30% year-on-year (YoY) growth in customer registrations in 2022, taking the total number of companies to more than 9,500, the highest in a decade, according to new data released on Wednesday.
The UAE’s non-oil foreign trade reached a record AED 2.23 trillion ($607.2 billion) in 2022, up by 17% from the previous year.
Among overseas markets, Jafza has been drawing considerable interest from Asia, particularly Chinese and Indian businesses.
Chinese and Indian firms
The DP World-owned free zone said the number of new Chinese companies went up four times last year, which indicates a “healthy” post-COVID demand from the Far East.
The total number of new Indian companies at the free zone also went up by 30% last year.
“The notable increase in newly registered Chinese and Indian companies in the free zone has undoubtedly played a vital role in UAE-China trade, valued at AED 264.5 billion and that of UAE-India trade at AED 180.9 billion, in 2022,” said Abdulla Bin Damithan, CEO and Managing Director of DP World UAE and Jafza.
During the past 10 years, the total number of logistics companies at Jafza also went up four-fold, while the vehicle and transport segment saw a compound annual growth rate of 26%.
(Writing by Cleofe Maceda; editing by Seban Scaria)
