10.10 PM Thursday, 28 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:57 06:11 12:27 15:53 18:37 19:51
28 March 2024

China trade via Jafza to cross Dh40bn in 2012

Published
By Staff

China continues to hold a top position among Jebel Ali Free Zone’s (Jafza) global trade partners with trade through the free zone expected to cross Dh40 billion in 2012.

Jafza said the trade was an increase of 10 per cent from last year while Chinese companies in Jafza have more than doubled to 130 at the end of Q3 of 2012 compared to 64 in 2007.

Multi-nationals such as Sinopec Group, Sinochem International, China National Petroleum Corp., CSCEC, and China Railway Engineering Middle East among others have base in the free zone.

China’s robust growth in Jafza reflects the world’s second largest economy’s growing interest in the Middle East region for its non-oil exports. Historically, China’s interest in the region was built and driven by oil; nearly a quarter of China’s daily oil requirement is derived from the Middle East's oil producers.

The global economic downturn has further supported China’s desire to strengthen its presence in the region, particularly when its key markets, the US and Europe, are struggling with debt and economic stagnation.

Ibrahim Al Janahi, Deputy CEO of Jafza, commenting on the new China-Middle East equation through Jafza, said: “The shift in China’s outlook is evident in growing number of trade visits of Chinese officials and entrepreneurs to the UAE. The import driven and resource rich Middle East region has all the potential that a country like China could look for. Using Jafza’s facilities and logistics capability to serve the entire region most efficiently carries a lot of weight for the Chinese investors and entrepreneurs.”

In the last three months alone five important trade delegations visited Jafza to explore new trade and investment opportunities in the region, including a seven-member senior government delegation led by Deputy Mayor of Beijing Shunyi District.

A 35-member trade delegation from the construction industry, many dealing in ceramics, of Foshan in the South of China, visited Jafza last month to explore possibilities to set-up their regional base in Jafza. Prior to this construction industry delegation, a 12-member delegation from MTBE industry in China had visited Jafza to explore similar possibilities in the Free Zone. They were interested in knowing more about bulk chemicals investment environment and policies in Dubai.

MTBE (Methyl tertiary butyl ether) is used principally as a blending agent in motor gasoline for its oxygen content and high octane value. Demand for MTBE continues to grow in China, Asia, Mexico, the Middle East, and Central and Eastern Europe at a rapid pace. Jafza is home to a large number of multinationals in the oil and petrochemical sector who use the free zone’s outstanding infrastructure and facilities to serve the entire Middle East and Asian markets.

Looking at the growing interest of Chinese businesses in the Middle East, Jafza expects significant increase in the number new Chinese companies joining the Free Zone this year.