The food innovation and distribution cluster is a catalyst for the growth of F&B businesses in the region
Jebel Ali Free Zone’s (Jafza) F&B cluster plays an integral role in the UAE’s aspirations to achieve global competitiveness.
Generating an estimated 20 percent of Dubai’s total F&B trade, Jafza’s F&B cluster offers a plethora of lucrative incentives, such as customs, no corporate tax and VAT exemptions, all of which drive its continued growth plans.
By deploying and embracing the latest trends in food manufacturing and distribution, the free zone drives local food production in the country, contributing to realising the UAE’s National Food Security Strategy 2051 targets, a press communique indicated.
Ahmad Al Haddad, Chief Operating Officer, Parks and Zones, DP World UAE said, “The free zone’s ability to cater to diverse F&B industries and support farm-to-shelf supply chain activities is unmatched. The common user facilities can be used for trade and processing of a variety of products and ready-to-consume food items.”
A mega food factory
The free zone’s infrastructure is equipped to meet the ever-changing demands of F&B brands; from processing, manufacturing and blending, to seafood farming, packaging, trading, distribution, warehousing and office spaces.
A ‘Halal Foods’ market
Jafza’s Halal F&B Trade Incubation Centre in Jafza One offers premium benefits, lowering operational costs of halal foods businesses, thereby catering to the growing ‘halal foods’ sector, which is projected to reach USD739.59bn by 2025 as per predictions by Grand View Research.
A hot cuppa
The free zone has been the driving force for coffee trade through Dubai. Over the last five years, coffee trade witnessed a growth of 26 per cent CAGR. 67 import countries and 51 export countries contribute to this surge, with the UAE occupying a mega share of 37 per cent as the key export country.
The free zone attracts leading coffee companies from around the world, providing warehousing, packaging, roasting and other facilities and innovative solutions for coffee trading companies.
Jafza has also been steering tea trade in the country that is at the forefront of tea trading and re-export. The UAE imports tea from over 60 countries, and exports to over 127 countries. An estimated 174,000MT of tea, valued at over AED 2.6bn passed through the UAE.
As the largest tea processing centre, Dubai produces nearly 20 billion cups of tea annually. Contributing to this growth is the tea segment in Jafza that offers world-class tea blending, packing, and manufacturing. Some of the free zone’s top trading partners include the Middle East, Australia, South Asia, Europe and West Africa.
A global food logistics zone
Jafza’s infrastructure, centralised location and access to established trade routes have worked in its favour. Its 1.69mn sqm combined facilities consisting of plots, office spaces, LIUs and warehouses, have underpinned the growth of 584 F&B companies from 71 countries.
A technology-powered zone ZADI, an online cross-border trade facilitation platform for food shipments by Dubai Trade is DP World’s single window for all digital trade solutions. The platform efficiently connects food traders with food sources, enabling them to easily access food supplies and transfer shipments, choosing from a wide array of DP World’s shipping line partners.