As one of the world's leading free trade zones to establish and grow businesses, Jebel Ali Free Zone offers endless benefits. The free zone was created in 1985 near Abu Dhabi. With its main objective of promoting trade and supporting container throughput at the Jebel Ali Port.
Today, JAFZA offers multi-modal connectivity as one of the largest free zones globally and the leading business hub between Asia, Europe, and Africa, with over 30 years of experience.
In 2022, The zone accounts for almost 24% of total Foreign Direct Investment flows into the UAE. The free zone contributes 23.8% of Dubai's GDP and sustains the employment of over 135,000 people in the United Arab Emirates. As reported in 2020, the zone generated trade worth $104.2 billion.
Data-driven capabilities and businesses opportunities
With the facilitated environment for businesses to thrive in JAFZA, especially the wholesale e-commerce sector, one can expect rapid growth in their business, owing to the country's robust infrastructure. That facilitates our services as a logistic partner, including customs clearance, warehousing, and last-mile delivery logistics. The strategic location of the zone and its data-driven capabilities that support technologically advanced solutions give businesses a competitive advantage in the market.
JAFZA’s data infrastructure and the use of new technology benefit thousands of companies in the zone, helping them stay ahead of the curve. That allows for 24/7 access to hundreds of digital trade and logistics e-services, company licensing, and Free Zone administrative services. It enables Vervo Middle East to adopt pioneering digital solutions and provide unmatched connectivity for its clients in the area. It also helps introduce solutions such as paperless cross-border transactions in compliance with regulations and many extensive offerings.
Internet of Things and digital systems implementations in supply chains
The Internet of Things has a massive positive impact on business supply chains. That will change how supply chain leaders manage information. It allows for greater in-transit visibility by dealing easily with different moving parts. Tracked shipping information through the Internet of Things can be better monitored for in-transit objects. Using cloud-based GPS and radio-frequency identification (RFID) technology for real-time updates, insights, and data gathering on the object's exact location and its state in terms of temperature and condition besides other relevant information such as traffic conditions and route specifications. That helps reduce losses, manage the inventory accurately, and much more as the Internet of Things becomes ubiquitous.
Supply Chain Automation and Trade Integration:
JAFZA infrastructure allows for using digital technologies to improve efficiencies, connect applications, and streamline processes within supply chain operations.
Business agility, transparency, and operations visibility are now easier through autonomous transport, back-office automation, optical character recognition (OCR), end-to-end document automation like data capturing warehouse automation involving supply/demand planning, AGVs, and AMR. The available information and communication systems support connections with relevant government and private sector entities to amplify business.
Speaking logistically, incorporating intelligent technologies such as Digital Process Automation, Robotic Process Automation, Artificial Intelligence, and Machine Learning is an effective way to seamlessly exchange information and simplify the logistics journey through optimal data retrieval. This also allows for a resilient supply chain and meeting all required regulations, from planning, execution, and completion of transport and logistics operations. The agility many supply chain organizations seek is efficiently offered through connectivity and automation.
JAFZA Free-Zone Yiwu market
In light of the above, JAFZA revolutionizes the trading experience of businesses in the UAE. Over many decades, with exceptional efficiency, Jebel Ali Port has developed its capabilities to be the first port for the Arab Gulf countries and their gateway linked to international trade routes. More facilities are scheduled to open this month in the heart of Jebel Ali Free Zone, notably the Yiwu market. It makes the first smart free-zone market in the Middle East to fulfill the needs of retail trade and wholesale industries, online or offline. It facilitates handling small commodities and LTL eCommerce freight shipments, spanning over 6 million sqm and attracting nearly 210,000 daily visitors.
It also promotes efficiency in terms of procurement, fulfillment, and final sale; by offering a dual-free zone and onshore environment.
The free and direct movement of cargoes thus helps avoid additional customs charges, enables global businesses and traders to access bulk discounts, reduces supply chain expenses, and minimizes delivery times by leveraging Dubai's strategic location. That means competitive costs and seamless distribution across the region.
Sustainable services
JAFZA has emphasized its commitment to sustainability and established strong foundations to ensure responsible operation, which allows the zone to have a positive impact on people, partners, and the planet. The UAE sets an example of its vision of sustainability. That is emphasized through policies, regulations, and employing the necessary tools and ingenuity, especially in the present-day logistics industry. The Jebel Ali Free Zone uses intelligent technologies to make operations more sustainable. The remarkable sustainable activities, such as installing thousands of sqm of solar panels in the area and on the surrounded warehouses, helped cut energy and resource use costs contributing to creating a more equal and connected planet. This approach effectively aligns with the United Nations (UN) Sustainable Development agenda. Along with the JAFZA eco-friendly initiatives, the care for their communities and maintaining international best practices helped create an honest and open culture to build trust.
The logistics industry at JAFZA
By serving as a trade bridge between the UAE and markets across the globe, JAFZA is home to thousands of global businesses. The zone effectively meets the specific needs of the logistics industry. The proximity to the Port of Jebel Ali and its facilities have collectively helped place the logistics industry on the top across the UAE.
JAFZA has established itself as a leading logistics hub at the heart of the global trade network, reinforcing economic and trade cooperation between the UAE and more than 130 countries. The UAE's multimodal infrastructure enables the free zone to give smoother access to vital markets in the MENA region.
JAFZA's one-of-a-kind feature is a sea-land–air logistics location in one customs-bonded place, which streamlines freight transportation from sea to air by eliminating the need for intermediate customs checks. The rise of the e-commerce industry in the UAE has fueled the growth of logistics, given the large number of e-commerce companies that prefer third-party logistics (3PL) service providers for more cost-effective and streamlined supply chain management.
Introducing Vervo Middle East to JAFZA
The previous month was fruitful for Vervo Middle East in the UAE. In the Previous May 2022, The UAE - Latvian business forum was held in Riga and organized by the Investment and Development Agency of Latvia (LIAA). The forum was organized with a mission of strengthening the current business relations and seeking to establish new ones. It went successfully as Mr. Maris Dreimanis, the CEO of Vervo Middle East, had a prosperous business meeting in Dubai with representatives who took part in the forum.
Vervo Middle East met with Mr. Faisal Jassim in the UAE, the Senior Manager of JAFZA. Notably, Mr. Jassim is an energetic, dynamic, and productive manager with a distinguished record of professional achievements. We effectively discussed business opportunities in the Jebel Ali area with Mr. Jassim.
During our meeting, Faisal Jassim introduced Maris Dreimanis to possibilities for Vervo Middle East in JAFZA. Considering is a huge community with around 8700 companies representing industries from logistics and warehousing to electronics, e-commerce, agriculture, and more.
The meeting witnessed fruitful proceedings. As we highlighted above, one of the remarkable features of the zone is its strategic location between Jebel Ali Port and Al Maktoum International Airport, providing smooth multimodal connections between continents; Handling container shipping, air forwarding besides other freight forwarding and logistics services. Moreover, Jebel Ali Free Zone is one of the major contributors to the overall growth of the UAE.
Hence, in Vervo Middle East, we are continuing our cooperation with the UAE to study the results of our meeting and taking JAFZA as one of our strategic sites in the region. Given the rewarding opportunities and potential possibilities that JAFZA could offer our clients, like foreign ownership, foreign repatriation of capital and profits, excluding tariffs on re-export, easy access to air and sea transportation, and more.
The port of Jebel Ali is the ninth busiest port in the world and the busiest port in the Middle East. Moreover, it is a part of the Maritime Silk Road that connects China to Southeast Asia and Indonesia, runs through India to Mombasa, crosses the Arabian Peninsula, the Red Sea, and the Suez Canal passing through Somalia and Egypt. It continues from the Mediterranean to Europe and the Upper Adriatic region to the northern Italian hub of Trieste. Involving the South China Sea, Strait of Malacca, Indian Ocean, Gulf of Bengal, Arabian Sea, Persian Gulf, and the Red Sea; With the availability of rail connections of the "One Belt, One Road" initiative links Central Europe, Eastern Europe, and the North Sea.
Jebel Ali Port provides ship transshipment, container customs clearance, distribution, and customized warehousing with pre-built customs-bonded and non-bonded dedicated warehouses for high-quality storage and light manufacturing, which come in various types with different features. Besides more logistics and freight services that allow for competitive costs and safe delivery.
We want to express our heartfelt gratitude to Faisal Jassim's dedication as the senior manager of JAFZA for providing thorough directions regarding our next steps and for answering our queries and concerns sufficiently.
It is a pleasure to do business in such a location with the dedicated team of JAFZA. At Vervo Middle East, we look forward to future collaboration and partnership.
As the CEO of Vervo Group stated, "The United Arab Emirates, particularly JAFZA, set a leading example to entrepreneurs worldwide of the way business should be conducted." Vervo Middle East is glad for the opportunity of expanding Vervo Group business in the Middle East, as it benefits our esteemed clients who require international cargo shipping services to and from the Middle East, Asia, Africa, and Europe.
We are highlighting that the CEO of Vervo Group, Mr. Maris Dreimanis, will be present in Dubai till the beginning of August. Thus, the Vervo Group is open to cooperation and discussing further business opportunities with you. Get in touch with our team via
References:
Article: JAFZA - A Vital Part of Dubai's Economy - DPWorld
The logistics industry at JAFZA – JAFZA Official
Learn the Potential opportunities in Jebel Ali Port and Why Opting for JAFZA – JAFZA Official
Article On IoT Technologies Impact Supply Chains – Global Trade
Article: Improve Supply Chain with Automation in 2022 – Ai Multiple Research
Who is Faisal JASSIM in JAFZA? – CCI France UAE.