Why is JAFZA an Ideal Choice for Global Investors?

A trade catalyst in Dubai, Jebel Ali Free Zone (JAFZA) is one of the most sought-after free trade zones on the globe with multi-modal connectivity. Created in 1985, this free zone is quickly becoming the preferred trade hub among investors, businessmen, entrepreneurs, startup owners, and millennials. It is home to more than 8,600 companies across 100 countries including Fortune-500 firms.

The question is – why is JAFZA progressively chosen for business setups? What features are gearing the development in JAFZA and making it the most efficient logistics hub in the UAE? Let’s find out.

Jebel Ali Free Zone (JAFZA)


Highlights of Jebel Ali Free Zone (JAFZA) 

  • Strategic Location: Located in Dubai, this is the world’s only free zone located between one of the world’s largest cargo airports -Al Maktoum International Airport and seventh largest container port -Jebel Ali Port.
  • Efficient Sea-Air Hub: Completed with the 6-lane highway, this free zone aids in keeping goods custom-bound (to minimize the processing time) as they can be transported from port to cargo aircraft within a little window of 20 minutes.
  • Significant Economy Driver: Jebel Ali free zone accounts for almost 23.9% of total Foreign Direct Investment (FDI) flow into the UAE, and contributes 23.8% of GDP in Dubai. In fact, it provides sustenance to more than 150,000 people in the UAE. In 2018, this free zone alone generated trade worth US$93 billion.
  • Workforce Protection Programme Initiative: JAFZA is going to become the first free zone in the UAE to return cash and bank guarantees to its clients. The initiative is announced to come into effect in September, 2019. It is expected to provide added benefits to employees and will infuse Dhs1.3 billion back into Dubai’s economy.

Under this programme, companies will avail insurance coverage that will help protect the workers in case of wage default by their employers. The benefits will extend to all existing JAFZA sponsored employers and will be applied by default to new workers from the time they receive their work visa.

  • Focus on Long-Term Customer Relationship: DP World owned JAFZA puts its focus on building long-term customer relationships and, thereby, building alliances with global investors by facilitating them with state-of-the-art infrastructure along with quality driven value-added services and incentives.

Licenses Offered by JAFZA

  • Trading License for conducting trading activities.
  • Industrial License for carrying out manufacturing activities along with importing raw materials.
  • Service License to carry out services mentioned on the license. All types of services are allowed unless otherwise restricted by Federal or local authorities.
  • E-Commerce License for buying and selling of goods and services over the electronic networks via electronic means.
  • National Industrial License for manufacturing activities where at least 51% of the ownership is of the nationals of AGCC country.
  • Innovation License to carry out the development of new product and services.
  • Offshore Registration to establish an offshore company with limited liability.

Due to a sheer number of advantages and licenses available for business setup, Jebel Ali Free Zone is increasingly attracting global investors in nearly all business sectors.