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Volume # 11 | November, 2012

UAE Freezones Biz News Updates

 
Jafza supports Dhs16bn FMCG, food and health sector in free zone


The number of FMCG, healthcare, food and beverage companies in Jebel Ali Free Zone (Jafza) has grown to over 700 so far in 2012, increasing from 556 in 2009. This steady and ongoing increase in the representation of these sectors in Jafza goes hand-in-hand with a rise in the level of trade contributions these Jafza companies have made to the region since 2001, reaching a peak of Dhs16bn in 2011.


This promising continued success of the FMCG, food and health sector within Jafza formed the base of discussions during the recent Strategic Customer Forum hosted by Jafza for these companies based in the free zone. This was the latest in a string of sector specific forums held by Jafza as part of its ongoing efforts to maintain strategic communication with its customers.


The forum provided an ideal platform for discussions of global trends and sector specific issues whilst encouraging open dialogue regarding how Jafza can help this sector's companies succeed and what issues facing their business environment Jafza can help resolve. The forum was attended by high level representatives from industry leaders based in the free zone, including Beiersdorf Middle East, Unilever Gulf, Cedars Jebel Ali Hospital, Procter & Gamble, Johnson & Johnson Middle East and Nestle Middle East.


In his keynote speech at the forum, Mr. Ibrahim Al Janahi, Deputy CEO of Jafza, said, "Despite a decline of more than 7% in global food industry's overall imports and exports this year companies in this sector have continued to thrive in Jafza. The increase in number of companies choosing Jafza as a base and expansions undertaken by existing companies in terms of their facilities and also their scope of operations is true testament to how our companies are beating global trends."


He added, "This strategic forum is a great opportunity for Jafza customers to partake in in-depth discussion on ways in which business operations in the free zone can be made even smoother. Industry leaders can take advantage of the opportunity to exchange ideas to find ways to keep the industry growing and succeeding. This Customer Forum is a chance to generate a sustained dialogue that will continue throughout the coming year."


Senior officials from Jafza and the top FMCG, food and healthcare companies joined the discussions in the forum, alongside key representatives from Jafza partners, including Dubai Customs, Dubai Trade, Dubai Municipality, RTA and Ministry of Health.


Key among the topics discussed were updates on initiatives that had been taken to meet issues raised in the previous forum and feedback on current issues that were affecting companies in this sector. Mr. Al Janahi spoke about two major steps Jafza had undertaken to meet specific requests raised by FMCG, food and health customers, saying, "Key among the initiatives Jafza has undertaken to meet its promise to customers has been the Jafza initiative to call for a joint forum of key stakeholders to draw an effective strategy to fight illegal trade and violation of Intellectual Property Rights (IPR) in the world. As a vital trade and logistics hub, this is a matter of strategic priority for all of us."


"Second, in order to address issues raised by Jafza companies regarding the issuance of Certificates of Origin, Jafza signed a Memorandum of Understanding with the Ministry of Economy to increase the ease with which these certificates are issued," he added.


One of the key problems facing companies in this sector, raised in last year's forum, was the issue of congestion on the roads within Jafza. This was a cause of delays with transport of goods for many companies. In answer to this, Jafza has spent the last year developing comprehensive plans with RTA to improve the road infrastructure within the zone; several phases of which are well underway and on track for completion in the first quarter of 2013.


Dr. Amr El Sabban, SVP of Engineering and Project Management, Jafza, updated the forum, saying, "Through Jafza's close partnership with RTA we have been able to draw firm plans for the improvement of Jafza road network including connections and entry points. Two important phases are already in progress to improve the ease of movement of large vehicles and will be complete early in 2013. A bridge creating a direct connection between Jafza South and Jafza North is under construction and a new cargo gate is being erected that will connect Jafza south directly to Emirates Road."


"In addition, further improvements are being made to our Gate 4 entrance from Sheikh Zayed Road and the nearby Roundabout 6. This will be of great benefit to the light vehicle traffic passing through this entrance," he added.


Another key issue that has been addressed was the issue of access for Customs inspections after certain hours. Jafza coordinated with Dubai Customs and there is now a 24 hour Customs presence at Gate 3 for specific transactions.


A new issue raised today was a problem faced by several companies present in the forum regarding waste disposal. Currently, the process of approvals across several entities including EHS, Dubai Municipality and Dubai Customs is lengthy and causes delays. Companies present called for a simplified, single window approach to this that would unify the individual stages of these approvals, thereby increasing the ease with which companies could dispose of a variety of types of waste.


Jafza representatives present assured to call a meeting with the entities involved in this process to gain a better understanding of the role of each entity and find a way of integrating the systems. Going forward Jafza officials renewed their promise to maintain a policy of continued discussion and encouraged the gathered industry leaders to keep them updated on any news, issues or feedback as the year progresses.
 

Courtesy AME Info FZ LLC

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