Dubai’s Jebel Ali port, Free Zone important for UAE-India trade hitting $100 bn

New Delhi: Dubai’s Jebel Ali port and Free zone will have central roles to play in boosting UAE-India trade volumes to $100 billion over the next five years, DP World in a statement on Wednesday.

In 2021, Dubai accounted for 86% ($38.4 billion) of the total $44.8 billion worth of non-oil trade between the United Arab Emirates (UAE) and India. Indian companies at Jafza are the second largest partners in terms of trade volume (4.4 million metric tonne) and fourth for trade value ($6.5 billion).

“Despite macroeconomic and geopolitical headwinds, India and the UAE have seen an increase in trade, with DP World as a key logistics enabler,” said DP World in a press release. “As per the Indian Ministry of Commerce and Industry, India’s non-oil trade with the UAE witnessed a 14% increase during July-August period, just months after the CEPA came into force.”

The CEPA (or Comprehensive Economic Partnership Agreement) came into force on 1 May, immediately eliminating duties on more than 10,000 products and services delivered by entities in the two countries.

“DP World is also supporting the ‘Make in India’ initiative and ‘Production Linked Incentive’ schemes to boost manufacturing, investments, and exports from India via its Jebel Ali hub, offering unmatched logistics and trade solutions and greater access to new markets,” the Dubai ports operator said in a statement.

Through its alliance with India’s National Investment and Infrastructure Fund (NIIF), DP World will pump in up to $3 billion to create ‘world-leading’ integrated logistics infrastructure in that country.

DP World’s current portfolio includes five port terminals with an annual capacity of 6 million TEUs, as well as five container freight stations. It also operates 31 container trains, seven rail-linked private freight terminals, cold chain facilities and a fleet of 60 trucks.

“DP World is developing three free trade zones, more than 20 built-to-suit warehouses and 100+ hubs for express cargo,” the Dubai company said in a statement. “Its feeder service, Unifeeder, is the largest coastal shipping player in India with more than 70 per cent market share of coastal traffic.”

“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. DP World’s key offering towards this is the ‘India-UAE Bridge’, an initiative that will integrate our assets and capabilities to enhance trade values for both nations. We also have the India Traders Market under development and the new Agri Terminal’s capabilities, which will all help India’s trade with the world,” said Abdulla Bin Damithan, CEO & Managing Director - DP World UAE & Jafza.

“DP World is committed to partnering the growth of bilateral trade between India and UAE with the enabling ecosystem we have built in terms of logistics facilities and capabilities. Our key assets including maritime terminals, rail-linked private freight terminals, free trade zones among others are geared to support the growing trade needs of the industry. The UAE is an excellent gateway for Indian exporters to have better access to markets and customers in Africa, the Middle East and Europe. With the CEPA now firmly in place, I am confident that bilateral trade will reach the $100 billion mark well within the target time period,” said Rizwan Soomar, Chief Executive Officer & Managing Director, DP World Subcontinent.

The Jebel Ali Port and Jebel Ali Free Zone (Jafza), which form a world-class, integrated ecosystem for over 9,000 companies from around the world, serve more than 3.5 billion people globally by connecting directly to 150 ports and more than 180 shipping lanes.