Volvo sets up regional distribution center at Jebel Ali Free Zone

Jebel Ali Free Zone Authority (Jafza) announced that it had signed an agreement with the Volvo Group, the leading suppliers of transport solutions, whereby the latter will set up its regional distribution center at the Jebel Ali Free Zone.

The distribution center to be located in the southern area of Jafza will trade in all Volvo products and equipments including engines. The goods will be directly imported from Sweden through the Jebel Ali port. Of the 47,583 square meters of prime land that will be acquired by Volvo, only 10,000 square metres will be initially utilised. The remaining land will be used for the company’s future expansion plans.

“We are proud to have Volvo setting up its operations at the Jebel Ali free zone. Jafza has been focussing on attracting companies from Europe, especially the Scandinavian region,” said Ibrahim Al Janahi, Regional Manager – Europe, Jafza. “Nearly one third of the companies at the free zone are from Europe, including Fortune 500 companies like Nokia, DaimlerChrysler, Nestle, Philips, Procter & Gamble and Hewlett Packard. Volvo, known world-over for the quality and precision of its products, will find Jafza an ideal location to target the growing Middle East and North African regions,” he adds.

A number of road shows, presentations, marketing campaigns and conferences were conducted by Jafza in many of the Scandinavian countries in an effort to attract more companies to establish operations in the free zone. Several Swedish companies like ESAB Middle East and Munters Middle East, already have an established presence at Jafza.  

Volvo, with its distribution centre, will be having its first direct presence in the Middle East and will take this opportunity to test market its products in the region. Volvo decided to locate its center at Jafza after executives from Volvo conducted several rounds of surveys and analysis to study the feasibility of the project.

“Volvo was contemplating other areas in this region as well for this center. Volvo officials were in constant touch with us over the past few months, analysing the facilities and feasibility at the Jebel Ali free zone and they decided to set up their base in Jafza as they were fully satisfied with the infrastructure, support services and accessibility here,” added Al Janahi.     

“More than 75 per cent of companies at the Jebel Ali free zone are trading companies, 22 per cent are manufacturing units while 3 per cent are service companies. The highly regarded Jebel Ali port coupled with the various advantages of setting up operations in the Jebel Ali Free Zone like, simple administrative procedures, zero duties on all import and export goods and machineries within the free zone, modern communication facilities and much more will attract more international companies to the zone,” concluded Al Janahi.