Jafza’s $3.7 Billion Food Valley to Attract Companies at Gulfood 2022

Jafza’s $3.7 Billion Food Valley to Attract Companies at Gulfood 2022

Food innovation and distribution cluster at the free zone is a catalyst for the exponential growth of F&B businesses in the UAE and the Middle East

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% 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.

Ahmad Al Haddad, Chief Operating Officer, Parks and Zones, DP World UAE said: “The F&B industry is rapidly evolving as a result of new industry trends and technological advancements. As a global food logistics and manufacturing hub, the UAE’s role is consequential.

"Hence, to ensure its diversification and increase investments and trade figures, identifying attractive opportunities in the F&B market is essential. To accomplish this, we rely on Jafza, the leading trade and logistics hub.

"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.

"Moreover, keeping in mind the evolving market, we are constantly upgrading our facilities that have helped us forge valuable global and regional partnerships.”

A Mega Food Factory

Jafza’s integrated F&B cluster caters to a diverse array of segments in food manufacturing and distribution and is home to some of the world’s leading brands, including Unilever, Nestle, Heinz, McCain, Hunter Foods, Alokozay Group of Companies, Al Khaleej Sugar, Bayara, to name a few.

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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

The F&B markets account for an annual increase of 3.8%, and the Middle East and Africa region are positioned as global gateways for Halal industries.

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 $739.59 billion by 2025 as per predictions by Grand View Research Inc.

At the crossroads of Asia, Africa and Europe, Jebel Ali connects businesses to a growing consumer base and serves as an ideal hub to this import-dependent market.

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% CAGR. 67 import countries and 51 export countries contribute to this surge, with the UAE occupying a mega share of 37% as the key export country.

A Global Food Logistics Zone

Jafza’s infrastructure, centralised location and access to established trade routes have worked in its favour. Its 1.69 million sqm combined facilities consisting of plots, office spaces, LIUs and warehouses, have underpinned the growth of 584 F&B companies from 71 countries.

DP World’s global logistics network aids customer growth, helping them target unchartered territories where they can explore business expansion opportunities.

Additionally, boosting the local and regional F&B industry is Jebel Ali Port’s first-of-its-kind F&B Terminal equipped to process cereals, meat and seafood products, bottled water, and dairy products with specialised facilities for oil, tea, coffee, cacao, spices, and various primal food products.

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.

A Taste of the Future

The onset of the pandemic and its economic impact has profoundly altered consumer behaviour. Despite this, as per forecasts by Fitch Solutions, food spending growth will accelerate in 2022, expanding by 4.3%, up from 2.6% in 2021.

Food spending is expected to grow by an average annual growth rate of 4.2% over the next three years (2022 – 2025). The increase in consumer spending will undoubtedly have a positive impact on production and trade, fuelling economic activity in the country.

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