Electronics and IT sector in Jafza generated trade worth over USD 38 billion in 2014

Jebel Ali Free Zone (Jafza), the flagship free zone entity of Dubai and trade and logistics hub for the wider Middle East region that spans from West Asia, the CIS, Africa and the Indian Subcontinent, has seen double digit growth in the electronics and IT sector at the Free Zone. More than 1200 companies currently operate in the sector at the Free Zone who are estimated to have generated trade worth over USD 38 billion in 2014.  In terms of volume of trade electronics and IT is one of the largest sectors in the Free Zone.

These numbers were given by Jafza officials at the recently held strategic customer forum for the companies in the electronics and IT sector in the Free Zone.

Talal Al Hashimi, Chief Operations Officer of Economic Zones World (EZW), the parent company of Jafza, commenting on the industry segment said: “According to expert insights the global electronics market is forecasted to be worth over USD 2.9 trillion by 2020. The wider Middle East region that Jafza as a hub serves will be one of the important markets for electronics and IT industry in the coming years. The sector’s growth in the region is mainly driven by increasing disposable income, expanding population, growing tourist inflow, rapidly growing internet penetration and strong distribution capability of key players like Jafza. Dubai Expo 2020 will further amplify the number of tourists that will visit Dubai, other emirates in the UAE and countries in the region, which in turn will provide further boost to consumer electronics and IT industry. The introduction of Dubai Smart City initiative by His highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has already provided major boost to internet-enabled devices market in the UAE. We must capitalize on the emerging opportunities. Today’s customer forum is all about this.”

Omar Bin Hendi, VP-Customer Relations and Development, in his welcome note highlighted the importance of the sector in the Free Zone and the objective of the customer forums, which are designed as an open platform to share ideas to facilitate further growth in the respective sectors, at the same time, address customer concerns to make their operations more efficient and seamless in the Free Zone.

This year’s Electronics and IT Forum included a panel discussion on e-Commerce, which is forecasted to play an important role in the growth of electronics and IT sector in the coming years.

The panelists included Rajeskaran Gnanamoorthy, Regional Director – Electronics, souq.com, Shailen Shukla, Head of Logistics, Jumbo and Hassan Mikail, Chief e-Commerce Officer, Aramex. The panel discussion centred on the importance, opportunities and challenges the e-Commerce sector in the UAE and the region faces and was moderated by Hamad Al Sayegh, Senior Manager, Customer Relations and Development.

The panel discussion was preceded by an audience poll on a range of questions which included, what are the major areas of e-Commerce, is your company involved in e-Commerce, from a buyer’s perspective, what are the main obstacles in e-Commerce and what is the most important factor that will stimulate the growth of e-Commerce?

The result of the polling showed that retail and tourism are the two sectors that attract maximum number of transactions in the UAE and 67% of the companies are using e-channel for their transactions. The audience were of the opinion that product quality and payment security are the two main obstacles in the quicker adoption of e-Commerce in the region. The result of polling also showed that new and attractive offers and better e-commerce regulations will help the growth of e-Commerce in the region.

Senior Jafza officials briefed the industry gathering on various initiatives the Free Zone has taken to enhance its infrastructure including building several new light and heavy vehicle gates in Jafza South, development of new bridges and improvement on key roads and roundabout to further smoothen the traffic flow; construction of new staff accommodation and Light Industrial Unit 10 comprising 110 new facilities.

The officials also briefed attendees on new Jafza growth initiatives to support Free Zone based companies viz. inviting companies to meet visiting trade delegation that come to Jafza on a regular basis; inviting companies to join Jafza team in their roadshows across the world and providing them seminar slots in various business seminars that Jafza organizes during their roadshows, as well as, creating dedicated pavilions for Jafza companies at key trade exhibitions Jafza takes part in. The audience was also briefed on the development of new Jafza Community Portal that allows companies to display and promote their product and services. The portal acts as a customized business matching platform, by having a smart search mechanism.

Leading industry players - Sony, Panasonic, Aptec, Anixter, Jumbo, Nikai and many others from the electronics and IT sector and specialist logistics service providers such as Aramex attended the forum.

Senior Jafza officials including Ibrahim Mohamed Al Janahi, the Deputy CEO and Chief Commercial Officer  and partners including Dubai Customs, DP World, Trakhees, Dubai Trade, Dubai Chamber and Port and Free Zone Security addressed customer issues and queries. Jafza partners also briefed audience on various initiatives they have taken to make free zone operations more smooth and seamless.

The Forum also discussed ways in which Jafza and its customers could take advantage of emerging opportunities in high-growth markets in West Asia, the CIS and Africa, which Jafza, as the regional business hub, serves.