The hub is a popular place for small and large businesses, accounting for more than half of Dubai’s electronics and electrical trade volume.
Electronics And Electrical Industry Expansion
The Gulf’s electronics and electrical industry has expanded significantly in recent years due to increased disposable income, tourism, and internet access. As a result, the Gulf is one of the most connected places globally.
Due to its location, Dubai supplies electronics to the Middle East and the world. In 2021, the Emirate traded 2.7 million MT of electronic goods worth Dh347 billion. The local and regional e-commerce fulfilment infrastructure and global re-export markets boost its trade capabilities.
Jebel Ali Free Zone (Jafza)
Jebel Ali Free Zone (Jafza) is essential to how the UAE and the rest of the region can meet this rising demand. In 2021, the free zone in the heart of Dubai traded 1.4 million MT of electronic goods worth over Dh147 billion. That is more than half of Dubai’s total trade volume and more than 40% of its full value.
Over 26% of Jafza’s electronics hub companies are UAE-based, which is appealing and encouraging global consumers to buy local goods and services. 50% of companies are Middle Eastern. Asians make up 26% and Europeans 9%.
Eliminating Supply Chain Challenges
Jafza helps customers resolve supply chain issues. Modern, thermally insulated Light Industrial Units (LUIs) and warehouses are top-notch. Storage, distribution, and assembly allow partners to guarantee shorter manufacturing lead times.
Due to rising demand, the internet of things (IoT), and 5G, manufacturers must play up their game. Companies can meet market demands by seamlessly managing inventory using the free zone’s cost-effective multi-functional storage. Sending finished products to customers is crucial after manufacturing.
The Free Zone’s proximity to the Jebel Ali Port offers more than 1,300 companies from more than 80 countries multimodal connectivity, a robust distribution network, and extensive logistics facilities, facilitating quick clearance and a more controlled cargo handling process for clients. This expedites order fulfilment, which is suitable for customers.
Who Conducts Business in Jafza?
Businesses of all sizes, including SMBs, as well as multinational corporations like Samsung, Sony, Philips, Sharp, LG, HP, Toshiba, Hitachi, Nikon, and Oracle, choose Jebel Ali for its absence of customs taxes, simplicity of licencing, and extensive selection of adaptable infrastructure solutions on 1.20 million square metres.
The Metaverse’s Future
The metaverse will enable the sale of virtual and physical goods and allow customers to enter virtual stores with their digital avatars, transforming the ever-growing consumer electronics sector and trade in general. As the metaverse expands and companies like DP World explore its untapped potential, manufacturing and trade of electrical and electronic products that improve the user experience will boom.
DP World launched DPMETAWORLD in May to solve real-world supply chain problems virtually. Customers will benefit from the company’s six continents, 80 ports, and various logistics operations, which allow them to understand the supply chain, create alternate routes, and speed up goods flow.
Additionally, the business will look into metaverse applications for its products, such as the inspection of containers and ships and digital twin simulations of warehousing and terminal operations. Their customer-centred applications will also enhance retail market access, allowing unlimited customers access to DP World’s 1600+ showrooms at the Dubai Traders Market.
