The results of the study, titled “Economic Impact Assessment of Jebel Ali Port and Jebel Ali Free Zone on the Economies of Dubai and the UAE”, were presented during a recent press conference held at the Dubai Press Club, reported state news agency Wam.
Jebel Ali Port alone contributes 26.1 per cent and Jafza 23.8 per cent to Dubai GDP. Both provide 14.9 per cent of the UAE’s national non-oil GDP.
Sultan Ahmed bin Sulayem, DP World group chairman and CEO, said “Trade has always been an engine for Dubai’s growth and we have played a central role in supporting it. The activities of Jebel Ali Port and Jebel Ali Free Zone are very closely connected with companies located there to take advantage of free zone facilities alongside to connect to global markets.”
“Our flagship is an example to the world and a model we are rolling out across other locations across our network covering 40 countries. Ports, economic zones and logistics working together supported by smart trade technologies are a way to drive economies forward for the benefit of nations and their people, both now and for future generations. As wealth generators, they are critical infrastructure assets that underpin prosperity and success, he added.
Identifying the value created by the port and the free zone, the BCG study underlines how they extend beyond their impact on GDP. It identifies three key areas – employment, diversification and productivity that reflect Gross Value Added to the economy.
The two also account for 450,000 jobs in Dubai’s economy, 16.2 per cent of its total employment of 2.8 million people. For the UAE, this amounts to 476,000 jobs in the economy, 7.5 per cent of the total employment of 6.4 million people.
Other findings show that Jebel Ali Port contributed Dh552 billion ($150.29 billion), around 42 per cent of the total value of trade in and out of Dubai and that it contributes 47 per cent of imports and 64 per cent of exports.
Dubai’s economic free zones together generated Dh434 billion ($118.16 billion) in trade value in 2017, with Jafza accounting for 70 per cent in terms of value and 97 per cent of the volume.
The inflow of FDI to Jafza-based companies added up to Dh3.2 billion ($871.23 million), 23.9 per cent of total inflow into Dubai in 2017 and Dh3.1 billion ($844.006 million) of the UAE’s FDI inflow of Dh33 billion ($8.98 billion) in 2016.
Jafza is home to more than 7,500 businesses from over 100 countries, supporting over 135,000 jobs on site and attracting more than 20 per cent of Dubai’s foreign direct investment, added the report.
Source Link: www.tradearabia.com