Recent forecasts for growth in UAE trade are set to benefit the countrys logistics sector, according to DP World Group chairman and CEO Sultan Ahmed Bin Sulayem.
A BMI report published recently forecasts a steady rise in trade of 4.35% year-on-year in 2017, driven by a 5% growth in imports and 3.7% in exports. The report sees positive economic growth for the UAE over the next five years, due to government plans to diversify the economy through the development of trade, the service sector, and tourism. Bin Sulayem believes these trends will further encourage prospects for the logistics, warehousing, and handling sector, increasing demand and attracting more businesses to the country who will need logistics support.
He highlighted the importance of the logistics sector in Jebel Ali Port and the Free Zone (Jafza) and Dubai as a pillar of the economy, with trade partners in the GCC, West Asia, Africa, India, and China broadening the opportunities for logistics companies operating in the free zone. The strategic location of Jafza with modern warehouses and a range of incentives supports the development of transport and logistics sector, with companies aiming to reach their target markets in the greater MENA Region.
There are currently 328 logistics companies from 29 countries operating within Jafza. They lease 4.2 million sqm of mixed use facilities, including 4.13 million sqm as land; 85,700 sqm of warehouse and light industrial units; and 1600 sqm of showrooms and offices.
Bin Sulayem, said: The ongoing investments and expansions at Jebel Ali Port and Free Zone aim to maintain our competitiveness globally, strengthening the country’s position as a global and regional business hub and a centre for trade. This will open up new markets for companies operating in Jafza and Dubai.
Jafza recently launched 110 new rental warehouses to meet the integrated needs of the supply chain and logistics sector, enabling companies to improve their distribution to regional markets and to serve their logistics requirements. These include the iron and building materials sector; fast-moving consumer goods companies, electronics, and auto parts businesses. The new warehouses are divided into two sections: 51 warehouses with an area of 702 sqm, and 59 warehouses with an area of 349 square meters, allowing companies to choose space to suit their needs.