• Uncategorized

DP World’s Jebel Ali Port and Free Zone Act as Trade Catalyst in Boosting UAE-India Non-Oil Trade

by Swati Gupta

July 21, 2023 26

UAE-based logistics giant DP World’s Jebel Ali port and free zone (Jafza) are playing a significant role in boosting the volume of non-oil trade between the UAE and India, creating new business opportunities for Indian companies through access to seamless and efficient logistics solutions. Last month, the UAE Ministry of Economy confirmed that bilateral non-oil trade volume reached $50.5 billion in the first 12 months since inking the Comprehensive Economic Partnership (CEPA), with the two nations on track to meet the $100 billion non-petroleum trade target by 2030.

Economic partnerships such as CEPA, along with initiatives like DP World’s India-UAE Trade Bridge, have contributed to the significant increase in Indian companies’ confidence in expanding their reach to global markets through Jebel Ali, say experts. Access to DP World’s global portfolio for end-to-end logistics and supply chain solutions as well as the unparalleled multimodal connectivity have only enhanced the attractiveness of Jafza to Indian businesses, particularly those in key sectors like food and beverages, manufacturing, and healthcare.

Role of Jafza in Boosting India-UAE Non-Oil Trade

Over the past year alone, there’s been a 30 per cent increase in the number of new company registrations from India at the Jebel Ali free zone. Much of this is thanks to a slew of trade initiatives, agreements, and incentives that have boosted the confidence of Indian companies looking to expand their operations and reach global markets via Dubai and its free zones.

“India and the UAE have shared a close relationship for many years. Our vision and goals are common – to create a self-reliant and sustainable market. In alignment with the UAE government’s strategy, we, at DP World, look forward to driving the success of India’s revolutionary ‘Make in India’ initiative, while helping the emirate of Dubai retain its position as a leading trade hub and India’s gateway to newer, larger markets,” said Abdulla Bin Damithan, CEO & Managing Director – DP World UAE & Jafza at ‘The India-UAE Bridge; Dubai – India’s Gateway to the World’.

DP World’s initiative, the India-UAE Bridge, was launched three years ago and integrates its assets in Jafza, India, and around the world to enhance trade and efficiency across borders. Jafza – which currently serves a total of over 9,500 companies from 140 countries – has been successful in attracting global companies by offering tax exemptions, 100% foreign ownership, and other business-friendly incentives, while also streamlining customs procedures, reducing bureaucratic red tape, and improving ease of doing business as well as making it easier to import and export goods.

Today, more than 1,200 leading Indian companies including Tata Steel, Mahindra & Mahindra, L&T, and Reliance Industries, among others are registered at the Jebel Ali free zone and serve key markets around the region through the hub. In fact, the Jafza-India route handles 19 per cent of non-oil trade between the UAE and India, making it India’s largest supporting ecosystem for trade. Through DP World’s Jebel Ali port and free zone, Indian businesses now have greater access to global production and manufacturing value chains in the UAE as well as to newer markets in Africa and Asia regions. By enhancing market access, businesses face lower foreign investment risk, thus making it easier and more attractive for companies and investors to trade internationally.

With DP World’s world-class infrastructure, strategic location, and efficient logistics solutions, the Jebel Ali port and free zone continue to act as a crucial trade catalyst between the UAE and India. As economic partnerships and initiatives deepen, the potential for further growth and collaboration between the two nations in the non-oil trade sector looks promising. The seamless integration of DP World’s assets in Jafza and India further bolsters the economic ties and opens new horizons for businesses to expand their global presence.