Steel, construction material sector in Jafza posts 8 per cent growth
Metal, Steel and Construction Material Sector in Jebel Ali Free Zone (Jafza) is buoyant. The sector has seen a robust growth of 8 per cent in the number of companies in the first 6 months of 2015.
HE Sultan Ahmed Bin Sulayem, Chairman of DP World and Chairman of Ports, Customs and Free Zone Corporation said that the steel and construction material sector in Jafza generated a total business of AED 13.6 billion in 2014 and it continues to grow not only in terms of trade but also in the number of new companies.
The sector’s continued growth reflects the Free Zone’s strength as a regional and global hub for the construction material. Evolution of Jafza as one of the leading free zones in the world is attributed to the guidelines provided by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai that focused on “growth driven by creativity and innovation”.
HE Sultan Bin Sulayem said: “To provide further boost to the sector Jafza has developed a dedicated 1.1 million square metre Steel & Building Material Zone in Jafza South. 30 companies are already working from this dedicated industry cluster.”
He further added that Dubai Ports, Customs and Free Zone fully support the steel and construction material industry through their focused facilities and services. The sector plays an important role in enabling economy to achieve sustained growth.
Talal Al Hashimi, Chief Operation Officer of Economic Zones World, the parent company of Jafza, commenting on the growth prospects for the sector said:
“The construction sector in the region is quite resilient despite challenging market conditions. Major Projects currently underway in the GCC alone are valued at AED 1.2 trillion. These projects offer huge opportunities for Jafza based companies. World Expo 2020 related projects will further accelerate demand for steel and construction material. We need to capitalize on these long term prospects as best as possible.”
Jafza was home to 838 companies in the metal, steel and construction material segments at the end of June 2015, which included world’s top multinationals like ArcerolMittal, Baosteel, Sumitomo Corporation, Tata Steel, Itochu, Nippon Steel, Makita and CNBM. In terms of segment breakdown 54 per cent of the companies in Jafza are dealing in construction metal, 36 per cent metal and steel and the remaining 10 per cent interior and furniture.
Besides the business prospects for Jafza companies in the coming years the forum also discussed ways to further smoothening business operations at the Free Zone, which could provide cutting edge to Jafza based companies. Jafza officials talked about various initiatives that the Free Zone, in this respect, has taken in the year.
The forums are part of EZW’s ongoing efforts of maintaining open channels of communication with its customers, and provide a platform to discuss global trends and opportunities in each industry sector. The forums also provide an opportunity to EZW management and customers to interact with each other to find ways to take optimum advantage of emerging opportunities and boost growth in respective industry segments.
The Metal, Steel and Building Material Forum was attended by a large number of market leaders such as ArcelorMittal, Tata Steel, Essar Steel, Conares, Qatar Steel and Fabtech. Senior EZW officials including Ibrahim Al Janahi, Deputy CEO of Jafza and Chief Commercial Officer of EZW, and representatives from DP World, Dubai Customs, Dubai Chamber, Trakhees, Dubai Exports, Ports & Free Zone Security and other Jafza partners addressed customer issues and queries.