Dubai’s Jebel Ali port, free zone have major roles in UAE-India hitting $100b after CEPA deal
Dubai accounted for 86% of UAE-India trade of $44.8b prior to CEPA
Dubai: Dubai’s Jebel Ali port and free zone will have central roles to play in building UAE-India trade volumes to $100 billion in the next 5 years. In 2021, Dubai accounted for $38.4 billion of the $44.8 billion worth of total non-oil trade between the countries. Indian companies at JAFZA are the second largest partners in terms of trade volume (4.4 million metric tonnes) and fourth by way of 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 statement. “As per the Indian Ministry of Commerce and Industry, India’s non-oil trade with the UAE witnessed a 14 per cent increase during July-August period, just months after the CEPA came into force.”
“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.
The CEPA (or Comprehensive Economic Partnership Agreement) came into force on May 1, immediately eliminating duties on more than 10,000 products and services delivered by entities in the two countries.
"We at DP World look forward to driving the success of India’s revolutionary ‘Make in India’ initiative, while helping Dubai retain its position as a leading trade hub and India’s gateway to newer, larger markets," said Abdulla Bin Damithan, CEO and Managing Director, DP World UAE and JAFZA.
"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."
'Bharat Bazaar'
Indian manufacturers can reach buyers from UAE and beyond through 'Bharat Bazaar', a traders’ market linked to Jebel Ali Free Zone where they can store, display and sell their products. Indian manufacturers have the flexibility to sell locally in Dubai or export to other countries.
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."