Speaking at its fourth Strategic Customer Forum – the previous three being dedicated to logistics, chemical/oil and gas, and the automotive sectors – Talal Al Hashimi, managing director, EZW-UAE Region told the gather representatives of the free zone’s machinery and equipment manufacturers that the volume in the last five years, rose to $31 billion, compared to $15 billion in 2005.
“The Machinery and Equipment Manufacturing sector has demonstrated steady growth in the last five years,” said Al Hashimi. “The industry within JAFZA is made up of 1,219 companies and represents 20% of the total number of companies operating in JAFZA.
He added: “The sector has traditionally been important for JAFZA since the free zone was established 26 years ago. With significant investments in top of the line infrastructure facilities and services, JAFZA has consistently nurtured the growth of the industry over the years.”
Despite the downturn hitting Dubai’s construction industry hard, trade generated by companies in this sector made up half of JAFZA’s total non-oil trade during 2010.
According to V G Ramakrishnan, Frost and Sullivan’s VP of Automotive and Transportation Practice, JAFZA has clearly recognised the importance of re-positioning itself as a regional hub rather than an entry point into Dubai.
Ramakrishnan, says that the development of a logistics city built around the Dubai World Central (DWC) – Al Makotum International airport, Jebel Ali Port and the Jebel Ali Free Zone, in conjunction with a recovery in the construction sector will boost the sector.
“It’s about integrating all of that in a place where you can have an integrated logistics and transportation movement.,” said Ramakrishnan. “The anticipated return of the construction industry will also play a key role in driving this growth. The construction industry is anticipated to revive in the next one or two years.”
Top six JAFZA imports, by market value:
- Phones $6.6 billion
- Oil $4.3 billion
- Gold $3.7 billion
- Data devices $3.6 billion
- Diamonds $3.5 billion
- Vehicles $1.8 billion
