Dubai’s DP World’s build and scale-up is paying off in real-time

In 2021, Dubai’s DP World was intent on widening its base in Africa – and future-proofing its global network of ports and free zones. The benefits from the Africa push should be seen in the next two to three years as these assets emerge from the water – and on the land.

DP World’s Africa network spans ports in Egypt, Senegal and Mozambique apart from inland logistics facilities in Rwanda. “With JAFZA (Jebel Ali Free Zone Authority) as a blueprint, DP World is also planning three free zones across Africa, in Egypt, Senegal and Somaliland,” said a statement. “Together with expanded ports and inland gateways, this network will open up trade with Africa.”

Recently, DP World acquired publicly-listed South African company, Imperial Logistics, which should add “significant strategic value” in offering services across a wider geography.

In Egypt’s Sokhna, construction is on for a $560 million expansion that includes a second basin and a 35-hectare container yard. DP World also has a joint venture with the Suez Canal Economic Zone for an industrial and residential zone around Sokhna – which will be 1.5 times the size of JAFZA.

In Egypt’s Sokhna, construction is on for a $560 million expansion that includes a second basin and a 35-hectare container yard. DP World also has a joint venture with the Suez Canal Economic Zone for an industrial and residential zone around Sokhna – which will be 1.5 times the size of JAFZA.

'Keep scaling up' is the same strategy that DP World has pursued in its other overseas push, notably in India, the UK as well as in Latina America.

The aim? Create ‘trade bridges’ as DP World seeks to play the starring role in the Dh2 trillion trade Initiative.

In 2019, DP World launched the India-UAE Bridge, a trade and investment development initiative that aims to attract Indian businesses to its flagships assets, Jebel Ali Port and JAFZA (Jebel Ali Free Zone Authority). Clients are offered end-to-end solutions whereby Indian businesses can access markets in the Middle East and the world.

The India-UAE Bridge will then create supply chain solutions, while also complementing India’s vision of ‘Make in India to Make for the World’.

Simultaneously, the Dubai entity is gaining traction with businesses coming out of China. As such, the UAE has a “vital status” in China’s Belt & Road Initiative, which attempts to link China by both sea and land to markets in Asia and Europe.

“JAFZA has always been welcoming of Chinese companies from an array of sectors,” said a statement. “Owing to our incentives and initiatives, the free zone has seen an increasing interest from Chinese companies to invest in Dubai and strengthen their presence in Jebel Ali.”

DP World in partnership with Zhejiang China Commodity City Group (CCC) recently launched the Yiwu Market as part of the first phase of Dubai Traders Market, located within Jebel Ali Free Zone. The Market will span approximately 800,000 square metres, with the Yiwu Market alone taking up about 200,000 square metres. The market will give traders access to wholesale discounts with subsidised supply chain costs and turnaround times.

According to Abdulla Bin Damithan, CEO and Managing Director of DP World – UAE and JAFZA, “The economy of Dubai specifically has always been resilient, having the ability to recover instantly from financial downturns. Since the onset of the global pandemic, the emirate showcased this very grit and determination by achieving double-digit growth in external non-oil trade during the first quarter of 2021.”

DP World now has trade bridges with multiple countries and regions including India, China, Africa, Pakistan, North America and Latin America. These bridges in turn have been “accelerators” for JAFZA. In 2020, the free zone generated trade worth $104.2 billion, and in the first-half this year, there has been a 40 per cent growth in new customer registrations.

This comes even when trade flows and supply chains are yet to nudge their way back into pre-pandemic numbers.

But DP World is not just thinking about the now aspect – each additional port, free zone and funds committed elevates its prospects for the future. And being the driver of a Dh2 trillion trade flow.