The Jebel Ali Free Zone Authority (Jafza) has announced that it has signed an agreement with the Volvo Group, the leading suppliers of transport solutions, whereby the latter will set up its regional distribution centre at the Jebel Ali Free Zone (Jafz).

The distribution centre, to be located in the southern area of Jafz, will trade in all Volvo products and equipments including engines. The goods will be directly imported from Sweden through the Jebel Ali port. Of the 47,583 sq m of prime land that will be acquired by Volvo, only 10,000 sq m will be initially utilised. The remaining land will be used for the company’s future expansion plans.
“We are proud to have Volvo setting up its operations at the Jebel Ali free zone. Jafza has been focusing on attracting companies from Europe, especially the Scandinavian region,” said Ibrahim Al Janahi, Jafza’s regional manager for Europe.
“Nearly one third of the companies at the free zone are from Europe, including Fortune 500 companies such as Nokia, DaimlerChrysler, Nestle, Philips, Procter & Gamble and Hewlett Packard. Volvo, known the world over for the quality and precision of its products, will find the free zone an ideal location to target the growing Middle East and North African regions,” he adds.
Jafza conducted a number of road shows, presentations, marketing campaigns and conferences in many of the Scandinavian countries in an effort to attract more companies to establish operations in the free zone. Several Swedish companies such as ESAB Middle East and Munters Middle East already have established a presence at the free zone.
Volvo, with its distribution centre, will be having its first direct presence in the Middle East and will take this opportunity to test market its products in the region. Volvo decided to locate its centre at Jafz after executives from Volvo conducted several rounds of surveys and analysis to study the feasibility of the project.
“Volvo was contemplating other areas in this region as well for this centre. Volvo officials were in constant touch with us over the past few months, analysing the facilities and feasibility and they decided to set up their base in Jafz as they were fully satisfied with the infrastructure, support services and accessibility here,” added Al Janahi.     
More than 75 per cent of companies at the Jebel Ali free zone are trading companies, 22 per cent are manufacturing units while 3 per cent are service companies.