Jafza, the Dubai flagship logistics hub of global trade enabler DP World, today announced that trade in steel and building materials reached AED 13.5 billion during 2016 with further increases expected as the free zone continues to develop services for companies in the sector.
Announcing Jafza’s participation in the Big 5 exhibition being held at the Dubai World Trade Centre from November 26-29, Sultan Ahmed bin Sulayem, Group Chairman and CEO DP World, said: “Ongoing construction projects in the UAE and GCC are a strong boost for the metal, steel and construction sector in Jafza as companies benefit from the growth in development projects throughout the region.”
“The robust health of this vital sector of the economy reflects the ongoing infrastructure development and the role Jafza plays in enabling companies to maximise their potential by providing comprehensive services. This is in line with the economic vision and the 2071 strategy of the UAE government, as well as the industrial plans of Dubai which aims to create new economic sectors and reshape existing ones through innovation and foreign direct investment.”
Jafza has allocated 1.1 million square meters of land for steel and building materials companies which highlights their importance. “This is part of our support of the vision of the country’s leadership to diversify the national economy in a post-oil era,” he added.
Through its annual participation in the exhibition, Jafza aims to create strategic partnerships with international companies to reach the fast-growing Middle East and Africa markets and other opportunities in the Asia-Pacific region and Europe.
Jafza has more than 967 companies operating in the steel and building materials sector from 87 countries around the world. Around a third (37%) are Middle East-based, 27% are from the Asia-Pacific region, 26% from Europe, 7% from North America and 3% from Africa. Indian businesses have the largest share with 14% with UAE-based companies at 13%. The sector employs more than 18,000 people which is 13 per cent of total Jafza sponsored employees.
Global companies with their regional headquarters based in Jafza include Arcelor Mittal, Bao Steel, Sumitomo Corporation, Tata Steel and Nippon Steel.
The total value of almost 22,000 current construction projects in the GCC is estimated to be USD $2.4 trillion (AED 8.8 trillion) according to a report by BNC (Business News for Construction). Projects in the GCC represent 85% of all those in the Middle East and North Africa.
Source: Albawaba Business