Considering the contribution Dubai’s Jebel Ali Free Zone (Jafz) has made to the UAE’s economy and the level of expertise it has achieved since it was established 21 years ago, it is no surprise that government authorities from China, Japan and Korea in the east to entities in the West as remote and exotic as Curacao in the Caribbean want to tap into that expertise.

Jafz has emerged as one of the main drivers of Dubai’s and the UAE’s phenomenal economic growth, having attracted foreign direct investment (FDI) of more than Dh 200 billion ($54.45 billion) so far. According to the Jebel Ali Free Zone Authority (Jafza), the FDI is growing at a “phenomenal pace.”  Huge as the FDI figure may sound, Jafza considers it a conservative estimate based on a recent survey conducted by the UAE Ministry of Economy and Planning which showed that 90 companies operating at the free zone and randomly chosen for sample surveying generated Dh3.3 billion of that kind of investment.
“Non-oil exports from Jafz reached Dh49.66 billion in 2005, accounting for almost half of the UAE’s total non-oil exports,” Jafza said in figures released to Gulf Industry.  The free zone also accounts for about 20 per cent of the UAE’s total non-oil imports. Imports into Jafz in 2005 amounted to Dh63.96 billion.
Jafz companies together provide employment to over 100,000 people and spur the national economy through their impact on sectors such as transportation, hospitality, tourism and trading.
“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 past two decades has enabled the UAE to firmly position itself as one of the most favoured investment destinations on the world map,” says Jafza.
 It is also proud it has been instrumental in stimulating activities for enhancing the human capital component of the country’s economy, a development it stresses is a “huge long-term gain in the UAE’s wealth-creation abilities.”
“Foreign entrepreneurs tend to invest in human capital by providing the necessary technical and management training 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 in the long run,” it observes.
Another facet Jafza alludes to is the successful establishment of forward and backward linkages with the domestic economy, which it believes will eventually lead to technology and skill transfers. It counts some of the major linkages as construction, electricity, information and communication technology, financial services and transportation.
Jafza today oversees some 5,500 companies from more than 110 countries in all regions. It was able to attract that many tenants by deftly creating awareness of the incentives and marketing the opportunities available.  To many, the provision of readymade offices and light industrial units was a magnet, but entrepreneurs have also set up larger manufacturing facilities, cajoled by Jafza’s marketing team and also by the fact that the infrastructure laid out was among the most modern in the world.
The free zone has also been successful in promoting a sense of partnership with tenants. It makes available a series of value-added programmes such as advice on future expansion and investment and on business matching in the matter of joint ventures in local and international markets. Jafza also invites companies to depute its officials to accompany its teams on business visits and updates companies on the latest projects related to their fields of activity.
Large as the free zone is, it is getting bigger, thanks to an ambitious project it has launched to develop specific industrial sectors through eight clusters in the South Zone. The Dubai government is spending Dh2 billion to develop the zone. The sectors include the Dubai Distribution Centre, Pharma-Med Park, Construction Square, Food & Beverage Park, Digital Valley, Chemicals & Plastics Field, Paper Pack Zone and Fragrance Beauty and Fashion Park.
Great expansions are in store for Jebel Ali Port, around which the free zone operates. Container capacity there will soar nearly 10-fold to some 67 million teu by 2030 from the current 7-8 million teu. A major international airport is being developed at Jebel Ali.  The airport, seaport and the free zone will be integrated with Dubai Logistics City which itself will be spread over 25 sq km and handle over 12 million tonnes of air cargo annually in 16 air cargo terminals.
As the UAE basks in the strides made by Jafza, one cannot fail to notice the drive and dedication of the sales and marketing team. Recently, at an Arab-Greek forum in Athens, a Jafza representative said:  “Our flexible and advanced rules of investment have contributed in creating a suitable environment that encourages many international companies to use Jafza as a springboard to reach their targeted markets. The massive logistic support base we offer also helps investors to move freely in borderless areas.”
The official went on to say: “One of the reasons why investors choose Jafz as their hub is the package of incentives we offer, such as exemption from taxes, good space with all means of communications and transport, modern technologies and an advanced and open banking system that permits the smooth transfer of funds according to the laws and procedures applied by the UAE Central Bank.”  The forum discussed an action plan submitted by Jafza for advancing the cause of a free investment climate and many Greek and other European companies expressed their desire to discuss with Jafza the possibility of setting up projects in the free zone.
Every now and then, inquiries come from international business organisations towards exploring possibilities for constituent companies to set up base in Jafz.  Last September, a delegation from the Chubu Economic Federation in Nagoya, Japan, visited Dubai for the same reason. Jafz is already home to more than 100 Japanese companies engaged in logistics and electronics and who use the free zone as a hub for redistribution.
During the past few months, several foreign delegations have been picking Jafza’s brains on free zone management.  Jafza is in talks with the Incheon Free Economic Zone Authority (Ifeza) for developing a portion of the Ifeza project.  “The Incheon project is very interesting,” commented Jafza CEO Salma Hareb.  “It fits in with our own strategy to expand across a rapidly growing market like the Far East. We look forward to a presence there in the near future.”
A few weeks earlier a team from Korea’s Busan-Jinhae Economic Zone also held talks with Jafza on possible cooperation.  And from the Dutch Caribbean island of Curacao came Gerrit Shotte, its minister of economy and tourism, who said his government was keen on seeking know-how in the fields of free zone, port and airport management.
Jafza International is already managing the Djibouti Free Zone and has signed long-term management contracts for Medhub, a logistics free zone adjacent to the new port of Tangier, and for a free zone in Port Klang in Malaysia.  It has also inked an MoU for developing Salalah Port in Oman.