The Dubai Multi Commodities Centre (DMCC) and the Jebel Ali Free Zone (JAFZA) have signed a Collaboration Agreement for the provision of warehousing and logistic solutions to DMCC companies in JAFZA. All companies established in DMCC will be able to use warehouses in JAFZA while being exempted from registration and licensing fees.
The DMCC, a hub for commodities trading, is now home to more than 15,000 companies having posted 1,868 new members in 2018, an increase of 12% compared to the previous year. In connecting the Middle East with Africa and Asia it contributes approximately 10% of Dubai’s GDP, but has no suitable options to provide warehouses and logistic options to its members.
JAFZA and Jebel Ali Port contributed 33.4% of Dubai’s GDP Taking in 2017, generating trade worth approximately US$93 billion. Under the new Collaboration Agreement, DMCC members will be able to trade under a free zone customs code which exempt them from customs duties and VAT obligations.
In addition to the access to Jebel Ali Port, companies registered in DMCC will be directly connected with Dubai South Free Zone (DWC) and Al Maktoum Airport, with the same conditions as JAFZA members, through a logistics corridor that connects DWC and JAFZA. In that way, all goods moved between JAFZA and DWC will remain in the free zones borders and will not enter mainland, where customs duties and VAT is applied.
DMCC Executive Chairman and Chief Executive Officer Ahmed Bin Sulayem said: “Since its establishment almost 35 years ago, JAFZA has played a crucial role in making Dubai the global center for trade it is today. Under our agreement, DMCC member companies will gain access to all of JAFZA’s state-of-the-art warehousing and logistical services at no extra charge through a single point of contact. This collaborative agreement provides a strong incentive for DMCC-based companies to leverage the facilities available at JAFZA, while streamlining our business processes to support our customers.”
