DP World To Buy Dubai Free Trade Zones
by Lorys Charalambous, Lowtax.net, Cyprus
17 November, 2014
DP World, a port operator based in the United Arab Emirates (UAE), announced on November 13, 2014, that it has agreed to buy Economic Zones World FZE (EZW), a Dubai-based operator of free zones, for USD2.6bn.
EZW operates the Jebel Ali Free Zone (known as Jafza), which is located near DP World's Jebel Ali Port – the largest port in the Middle East region. The free zone offers a number of business incentives, including 100 percent foreign ownership, zero percent corporate tax for 50 years, zero percent import or re-export duties, zero percent personal income tax, and unrestricted repatriation of capital and profits.
Sultan Ahmed Bin Sulayem, Chairman of DP World, said: "The acquisition of EZW represents a strategic and commercial opportunity that will benefit our customers as well as our Company. Jebel Ali Port and Free Zone support and drive the growth of Dubai and the wider region of some two billion people. Together, we will be able to offer seamless supply chain services to shippers and shipping lines, linking sea, road and air across the port and the free zone to the new Al Maktoum Airport via the Dubai Logistics Corridor to help them further improve efficiency."
The acquisition, which is dependent on shareholder approval, is expected to be completed during the second quarter of 2015.
DP World and EZW are both owned by Ports & Free Zone World FZE, which is a subsidiary of Dubai World Corporation.
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