Jebel Ali Free Zone Benefiting From Construction Activity
by Lorys Charalambous, Lowtax.net, Cyprus
29 September, 2015
Dubai's Jebel Ali Free Zone has reported increasing interest from companies operating in the metals, steel, and construction material sector.
The steel and construction sector in Jafza recorded a turnover of AED13.6bn (USD3.7bn) in 2014 and this sector continues to grow, not only in terms of trade but also in the number of companies, according to Ahmed Bin Sulayem, Chairman of DP World and Chairman of Ports, Customs and Free Zone Corporation.
Bin Sulayem said that Jafza has developed a dedicated 1.1 million-square-meter steel and building material zone in the southern part of the free zone. He noted that 30 companies are currently operating from the dedicated zone.
Talal Al Hashimi, Chief Operation Officer of Economic Zones World, the parent company of Jafza, said: "The construction sector in the region is quite resilient despite challenging market conditions. Major projects currently underway in the GCC alone are valued at AED1.2 trillion. These projects offer huge opportunities for Jafza-based companies. World Expo 2020-related projects will further accelerate demand for steel and construction material. We need to capitalize on these long term prospects as best as possible."
Jafza said that it was home to 838 companies in the metal, steel, and construction material segments at the end of June 2015, including multinationals like ArcerolMittal, Baosteel, Sumitomo Corporation, Tata Steel, Itochu, Nippon Steel, Makita, and CNBM.
Jafza offers a number of benefits to companies established in the zone, including: zero percent corporate tax guaranteed for 50 years, zero percent import and re-export duties, zero percent personal income tax, and no restrictions on the repatriation of capital and profits. 100 percent foreign ownership is permitted.
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