Jafza cements growing trade relationship with India

16 May 2023

Jebel Ali free zone accelerates move towards $100 billion vision to boost bilateral trade between UAE and India. In Jafza, Indian companies are the second largest partners in terms of trade volume and are fourth in terms of trade value…reports Asian Lite News

DP World’s Jebel Ali Free Zone (Jafza), the leading trade and logistics hub in the Middle East, is supporting the growth of India – UAE bilateral trade relations by outlining its efforts to drive towards the $100 billion goal for non-oil trade over the next five years. Plans for growth were highlighted at a Confederation of Indian Industry (CII) event in Delhi, India on 11 May, where Abdulla Bin Damithan, CEO & Managing Director, DP World UAE & Jafza, addressed an audience on why ‘Dubai is India’s Gateway to the World’.

Following the launch of CEPA, which came into force last year, the exclusive event outlined the major opportunities for Indian businesses in the UAE, which include lower or eliminated tariffs and an open and non-discriminatory environment for cross-border trade.  As per IHS Markit, the bilateral trade between India and the UAE increased from $68 Billion in 2021 to $84 Billion in 2022, registering a year-on-year growth of 23%. Jafza currently serves over 9,500 companies from 130 countries, with the Jafza-India route handling 19% of non-oil trade between the UAE and India, making it India’s largest supporting ecosystem for trade.

With its India-UAE Bridge initiative, Jafza aims to reduce time and cost of shipping goods between India and the UAE by providing a seamless and efficient logistics solution and creating new business opportunities for companies in both countries, particularly in sectors such as manufacturing, food and beverage, pharmaceuticals, and healthcare, etc. The initiative is a major step towards strengthening the economic ties between India and the UAE and promoting greater trade and investment between the two nations.

Abdulla Bin Damithan, CEO & Managing Director, DP World UAE & Jafza, said, “We are delighted to collaborate with CII, which brings together industry leaders, experts and key stakeholders from both countries to discuss the latest developments, challenges and opportunities in trade between India and the UAE. The announcement of the Comprehensive Economic Partnership Agreement (CEPA) last year is already having tangible benefits for India – UAE trade relations. Tariffs have been eliminated on more than 10,000 products and services over the next 10 years, which will provide a major impact on trade between the countries and the wider Gulf region. Jebel Ali Port and Jafza have played a crucial role in boosting trade between the two countries, and we look forward to further contributing to the growth of trade between India and the UAE.”

Speaking to business leaders from across India, Abdulla Bin Damithan highlighted Jafza’s unique value proposition and how the Free Zone can play a catalytic role for Indian companies to expand operations into foreign markets and strengthen their global value chains. 

In the Free Zone alone, Indian companies are the second largest partners in terms of trade volume and are fourth in terms of trade value. Jafza supports the ‘Make in India’ Initiative and ‘Production Linked Incentive’ schemes to boost manufacturing, investments, and exports in India via its Jebel Ali hub, offering unmatched logistics and trade solutions and greater access to new markets.

As part of Dubai Traders Market, Bharat Bazaar, the Free Zone’s mega-distribution centre with its showrooms and warehouses, will allow Indian traders to serve local and global customers from a single hybrid business platform for wholesale and retail via Jafza.

Jafza also links businesses to Jebel Ali Port’s F&B Terminal, which spans over one million square meters and offers dedicated facilities such as cereal silos, covered warehouses, and refrigerated container storage yards that cater to the specific needs of the food and beverage industry. Together, the Port and Free Zone offer a comprehensive logistics solution that can help Indian companies thrive.

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