UAE – Mubasher: DP World Plc on Monday announced it has partnered up with Zhejiang China Commodity City Group Company Ltd (CCC) to develop the Traders Market in Jebel Ali Freezone (JAFZA).
The Dubai-based port operator will hold a majority share of 70% in the joint venture (JV), while China’s CCC will own the remaining 30% stake, according to a press release.
The JV will span approximately 800,000 square metres, with Phase 1 development extending over 220,000 square metres, DP World said.
The capital expenditure of Phase 1 Capex has been estimated at $150 million, with construction work expected to commence in the fourth quarter of 2019 and to complete in a 24-month period.
The Traders Market is set to become the Middle East’s first smart Freezone market place for the retail and wholesale industries, aiming to serve the wider region with a population base of over 2 billion.
The project will enable traders to benefit from lower supply chain costs by using the state-of-the-art multi-modal infrastructure available in Jebel Ali and Dubai, the global port operator noted.
Moreover, international traders will be able to get bulk products in Dubai at wholesale prices with the shortest delivery times.
“This investment showcases our trade-enabling strategy as we look to catalyse trade and the movement of goods through removing inefficiencies and lowering supply chain costs,” group Chairman and CEO of DP World, Sultan Ahmed Bin Sulayem said.
Furthermore, Zhao Wenge, group chairman of CCC, said: “The Middle-East/Africa region is critical for the Belt and Road Initiative (BRI), and we aim to serve this high-growth market through the Traders Market in Jebel Ali, Dubai.
"We have chosen Jebel Ali for its efficient infrastructure, business-friendly environment and significant trade with China. The CCC group has a wealth of experience and a strong reputation for developing and operating efficient large-scale trading marketplaces. Together with DP World we are confident this venture will be a success,” Wenge added.
