KDE-IC News

Example of a current project: Dubai Logistics City

This year the UAE-Germany Economic Partnership Forum focussed on the logistics sector. At the end of 2007 the Dubai Logistics City at the Arabian Gulf should start operations. This unique logistics project aims at the further expansion of the immense spectrum of the regional business opportunities by completely reorganising the global and regional supply and delivery structures. After all with the Dubai Logistics City a market opens up with 2 billion people.

The economic revival of Dubai to the goods and trading-hub at the Gulf began in February 1985 with the implementation of the Jebel Ali Free Zone (JAFZ). In the first year 19 companies set up branches in the free trade zone. Today 4.300 companies have their seat there. And the boom continues. Meanwhile there is a lack of office buildings and storehouses so that about 800 companies are currently waiting to settle in the JAFZ.

On an area of 150skm arises the largest multimodal logistics-platform and Free Trade Zone of the world with the Dubai Logistics City, Jebel Ali Port and Jebel Ali International Airport which already is under construction. Jebel Ali Port which shows double-digit growth rates since many years already ranks among the ten largest container harbours of the world. In order to deal with that rapid growth extensive investments are planned. The masterplan until 2050 minimizes the financial risk and the political stability of the country convinces the investors.

Besides the tax exemptions, the concept of duty free areas contribute to the attractiveness of the location. In the free trade zone companies can be founded in complete ownership whereas in Dubai local investors have to share at least 51% of the capital.

The Dubai Logstics City (DLC) will be part of an enormous free trade zone with direct access to the new airport (Jebel Ali International Airport, JXB) and to the artificial Jebel Ali Port. In this free trade zone goods can be transferred directly from the port to the airport or to the DLC without paying duties or delays because of customs controls.

The DLC is built on a 25skm huge area. Through the direct access by air, sea and land the DLC offers excellent conditions for logistic service suppliers. According to this Ibrahim Mohamed Al Janahi, Regional Manager Europe of JAFZA, promises: “After the opening of the Airport City the transfer of goods from boat to plane will take only 40 minutes.” The DLC will start operations in 2007 simultaneously with Jebel Ali International Airport.

Concerning this major project the KDE-IC had a meeting at the exhibition with Mr Abdulla Al Falasi, Communications Manager of Dubai Logistics City. First ideas concerning a possible cooperation were exchanged. The intermediation and consulting of German medium-sized companies is planned which want to settle in the Jebel Ali Free Zone either autonomously or in a joint venture.

(ns, ob)