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Business setup in Jebel Ali Free Zone [JAFZA]

Jebel Ali Free Zone [JAFZA]

Focus and Commitment
As the leading business hub of the Middle East, JAFZA focuses on long term customer relationships. It fosters alliances with global investors by providing them world class infrastructure supported with quality driven value added services and incentives, enabling them to capitalize on huge business opportunities in the region, in the most efficient way. JAFZA aspires to be the international business hub of the Middle East. JAFZA is today one of the strongest brands in the region and stands for excellence, innovation and the power of partnership. It is the first free zone in the world to win ISO certification in 1996.

Vision:
JAFZA is determined to remain a powerful symbol that helps drive the development of Dubai, providing exciting and unlimited possibilities for industrial development.

Mission:
As one of the largest and fastest growing free zones, JAFZA aspires to be the international business hub of the Middle East. We focus on long-term customer relationships, providing creative and innovative solutions for global industrial investors and fostering alliances with them. We offer our customers world-class infrastructure supported with quality value-added services and incentives. We further provide community amenities, enhancing a dynamic and thriving business environment. Enabling this are our people, provided with opportunities to grow and be creative, and supported in their efforts to manage customer needs through technologically advance support systems.

Growth:
JAFZA has successfully been attracting “crème de la crème” in all business sectors from all over the world by sheer force of its unique value added offerings and propositions. More than 6000 of the world’s finest companies are currently based in JAFZA. The present JAFZA profile includes more than 150 of the Global Fortune 500 companies. Out of these about 42 per cent are from the Middle East region, 23 per cent from Europe, 15 per cent from the Indian Sub continent, 7 per cent from Americas, 6 per cent from the Far East, 5 per cent from Africa and 2 per cent from other parts of the world. JAFZA has seen a phenomenal 300 fold growth in its member strength growing from 19 companies in 1985 to over 6000 in 2007. Since the turn of this century the number of companies in JAFZA has grown by more than 350 per cent.

New Projects:
Jebel Ali Free Zone is the largest free zone in the MENA region. Driven by continuous growth in demand JAFZA has initiated multi billion south zone expansion project. Some of the prestigious projects underway at the Free Zone include the Convention Center Complex and JAFZA View 18 and 19. The AED 2.5 billion Jebel Ali Free Zone Convention Center Complex will be a perfect platform for businesses in JAFZA to foster ties in a setting of modern ergonomics and efficiency. Housing two 34-storey business towers, an exhibition center, a 600-seat auditorium and catering area, as well as a 322 room hotel, the Convention Center will cater to JAFZA business community's growing needs for a long time to come. JAFZA Towers-JAFZA View 18 and 19, along Sheikh Zayed Road and the new proposed highways, currently under construction, are designed with the sole purpose of providing more floor space to International Businesses. It will add 34,000 sq meter of prime commercial space to JAFZA’s facilities. The new developments at the Jebel Ali Free Zone and the surrounding region are designed to make JAFZA world’s one of the most efficient sea-air hubs, complete with a 6-lane highway that will help keep goods custom-bound (helping to minimize processing time) as they are transported from port to cargo aircraft in just 20 minutes. Jebel Ali Free Zone is the world’s only free zone located between one of the world’s largest airports and a sea port. The Jebel Ali Free Zone has Jebel Ali Port, world’s 7th largest container port on one side and the Jebel Ali International Airport, one of the world’s largest cargo airports on the other side.

JAFZA Contribution to the National Economy
JAFZA has been one of the main drivers of Dubai and the UAE’s phenomenal economic growth over the years. Its consistent focus on building long term customer relationship and exceptional ability to forge alliances with global investors by offering them value driven solutions, over the last two decades, has enabled • Updating companies on the latest projects relate-the UAE to firmly position itself as one of the most favored investment destinations, on the world map. The non-oil exports from JAFZA has reached AED 112 billion in 2007 posting an increase of more than 94% on its exports of AED 57.65 billion in 2006. This accounts for more than half of Dubai’s total non-oil exports of over AED 220 billion in 2007. JAFZA imports crossing AED 135 billion thresholds in 2007 accounts for over 31% of Dubai’s total non-oil imports of AED 444 billion. JAFZA companies together have sustained and generated over 160, 000 jobs in 2007. Besides their direct contribution to JAFZA companies also provide substantial boost to Dubai’s economy by generating enormous business opportunities in other economic sectors such as transportation, hospitality, tourism, & as well as trading sectors. JAFZA has also been instrumental in giving boost to human resource department; this supports the enhancement of human capital component of the country’s economy, which, in itself, is a huge long term gain in the UAE’s wealth creation abilities. Foreign entrepreneurs tend to invest in human capital by providing necessary technical and management trainings to their local staff. The demand for quality human resources eventually leads to increased investment in the country’s education and training sectors, enhancing ultimately the quality of the country’s human resources to world standards building right kind of environment for technology transfers in the long run. Built around the Jebel Ali Port, world’s largest man-made harbor, JAFZA is the region’s pioneering business initiative. JAFZA started its operations in 1985 and has been an effective magnet for inward investment ever since. It is today one of the main drivers of Dubai and the UAE’s phenomenal economic growth and has contributed substantially in positioning Dubai and the UAE as one of the most favored investment destinations on the world map. JAFZA has also hugely contributed to the incredible growth of Dubai Port’s throughputs. DP World-UAE is the 7th largest container port in the world. In its 22 years of operation, JAFZA has posted more than 300 times growth in its number of companies growing from 19 companies in 1985 to over 6000 in 2007 that includes over 150 of the Global Fortune 500 companies.

Value Added Services
JAFZA provides a number of value-added support services through which customers can enhance their businesses. These services include:

  • Advice on Future Expansion & Investment: JAFZA assists its customers in selecting the desirable site or location for their investment venture, as well as in determining operational requirements
  • Business Matching: Companies can avail the opportunities of exploring joint ventures and other mutual business opportunities by participating in frequent events organized by JAFZA in the local and international market
  • Business Delegations: JAFZA organizes events and extends invitations to its customers to join them on business trips to other countries, enabling them to gain market entries ed to their field of activity
  • Advising customers through JAFZA’s consulting offices on relevant issues related to setting up a business
  • At the heart of JAFZA’s customer-centric approach are its world-class technology tools – Dubai Trade Portal and JAFZA Link - that allow clients freedom to focus on their core businesses. DubaiTrade.ae Portal the innovative portal of Dubai World consolidates all the services of myDPA, eMirsal, e-ATA and myJAFZA sites within a single bilingual (Arabic-English) portal. DubaiTrade.ae is an indispensable tool for the trade and transportation industry, providing users with 24/7 secure access to all services with a single log on.

JAFZA Link
The JAFZA Link, a Jafza-Tejari joint initiative, is a virtual free zone, which enables JAFZA Business Community to send and receive trade leads, create online company profiles and product showroom and find suitable trading partners through Tejari’s secure business-to-business environment.

JAFZA Incentives and Cost Effective Solutions:
JAFZA offers following incentives to its customers to enable them to do business with greater ease and profitability.

  • 100% foreign ownership: in comparison to non Free zone areas where majority local partnership is required.
  • 0% corporate tax for a period of 50 years, a concession that is renewable.
  • Unrestricted repatriation of capital and profits
  • 0% import or re-export duties
  • 0% personal income tax
  • No currency restrictions
  • No restriction on hiring foreign employees
  • The facility to mortgage owned premises on leased land. A company established in the Free Zone that has built its own facility may mortgage its premises to any bank.
  • Access to abundant energy makes it cost-effective for clients to conduct production operations

Facilities Offered In JAFZA:
JAFZA offers a number of facilities to help meet the diverse needs of its customers. Office Buildings offer high quality spacious pre-built offices are available on an annual rental basis. The offices are unfurnished and equipped with light fixtures. They also have been specifically designed to allow for flexibility, accommodating a variety of customer needs. Light Industrial Units (LIU) offer high quality, thermally insulated purpose-built units are available on an annual rental basis. The units are fitted with additional features which allow for the construction of offices. For further ease of operations two exits, one ramp for fork-lifts and the other, a loading dock for containers and trucks, are provided at the rear of the LIU. The LIUs are of two types:

  • Warehouse-designed for storage and distribution of products
  • Factory-designed for assembly and light production JAFZA Land provide plots of land of various sizes for long term lease.

These sites are ideal if an investor wishes to construct its own facility, whether it is a warehouse or factory.
Registration and Activities in JAFZA:
JAFZA issues various types of licenses:
A general trading license allows the holder to import, distribute and store all items as per JAFZA rules and regulations. A trading license allows the holder to import, export, distribute and store items specified on the license. An industrial license allows the holder to import raw materials, carry out the manufacture of specified products and export the finished product to any country. A service license allows the holder to carry out the services specified in the license within the Free Zone. The type of service must conform to the parent company’s license, issued by the Economic Department or Municipality of the relevant Emirate in the UAE. A national industrial license is designed for manufacturing companies with an ownership or a minimum 51% AGCC (Arabian Gulf Co-operation Council). The value added to the product in the Free Zone must amount to a minimum of 40%. This license allows the holder the same status as a local or AGCC owned companies inside the UAE.

JAFZA Allows More Activities under Single Trade License
JAFZA offers additional options to its clients on trade license classifications, allowing them to combine a number of activities under the same license.
A company in JAFZA can opt for a total of seven activities under a similar business activity group, up to 12 activities under two different business activity groups, or up to 17 activities under three different business activity groups.

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