Jafza's electronics hub lights up the UAE

The Gulf’s electronics and electrical sector has grown sharply in the last few years, driven by rising disposable income, tourism and deep internet penetration rates, making the region one of the most connected globally.

Due to its strategic location, Dubai is one of the key suppliers of electronic products to the Middle East, and the rest of the world. In 2021, 2.7 million metric tonnes (MT) of electronic products worth over Dh347 billion were traded via the Emirate. Its trade capabilities are further complemented by the robust local and regional e-commerce fulfilment infrastructure and the re-export markets that connect to countries worldwide.

Jebel Ali Free Zone (Jafza) is crucial in enabling the UAE and the wider region to meet this ever-growing demand. Set in the heart of Dubai, the free zone alone traded 1.4 million MT of electronic products worth over Dh147 billion in 2021. That is more than 50 per cent of Dubai’s total traded volume and over 40 per cent in value.

One of the key unique selling points of Jafza’s electronics hub is that over 26 per cent of the companies are from the UAE, fostering localisation and creating a demand for local products and services globally. Regarding regional representation, 50 per cent of the companies are from the Middle East. Another 26 per cent are from Asia, and 9 per cent are from Europe.

Eliminating supply chain challenges

Jafza continues to support its customers by introducing a range of new facilities. The state-of-the-art and high-quality, thermal insulated, purpose-built Light Industrial Units (LUIs) and warehouses can be used for storage, distribution or as a space for assembly, helping partners ensure reduced manufacturing lead time.

Additionally, the increasing demand, rapid pace of technological advancements, including the internet of things (IoT) and the advent of 5G are prompting manufacturers to up their game. By taking advantage of the competitively priced multi-functional storage in the free zone, companies meet the needs of the market by managing inventory seamlessly, thus ensuring cost-effectiveness and time efficiency. Post the manufacturing process, one of the key stages is shipping off the end product to consumers.

The Free Zone’s proximity to the Jebel Ali Port ensures multimodal connectivity and a strong distribution network — for more than 1,300 companies from over 80+countries — complemented by extensive logistics facilities, enabling rapid clearance and a more controlled cargo handling process for customers. This all reduces order fulfilment times, a win for consumers waiting for their goods.

— muzaffarrizvi@khaleejtimes.com