UAE Free Zones occupy top three positions in global ranking, with JAFZA first

Jebel Ali Free Zone (JAFZA), the UAE’s first Free Trade Zone, reinforced its position as a global leader in trade and logistics when it was recognised as the top-ranked free zone globally at fDi Intelligence’s Global Free Zones of the Year 2024.

This honour, along with category titles as the ‘Industrial Zone of the Year’ and ‘Top Sustainable Zone of the Year’ in both global and Middle East terms, reflects JAFZA’s pioneering approach in creating a robust, future-ready environment for businesses.

In second place overall was Hamriyah Free Zone Authority in the Emirate of Sharjah, which was also the global runner-up in the ‘industrial’ category. Khalifa Economic Zones Abu Dhabi, another industrial zone located in the UAE, placed third overall and was the global runner-up in the ‘sustainability’ category behind JAFZA.

In overall fourth place was the Coyol Free Zone in Costa Rica, the highest ranked zone in the Americas. Dubai Multi Commodities Centre (DMCC) was recognised as the top global ‘knowledge’ free zone globally but slipped back in the overall global ranking to fifth, having held the top spot for nine consecutive years.

Dubai Silicon Oasis, which placed seventh overall, was also the runner-up of the ‘innovation’ zone of the year awards. Masdar City Free Zone was further placed tenth overall, meaning UAE free zones accounted for six slots in this year’s top 10.

The Global Free Zones of the Year awards, assessed by the Financial Times’ fDi Intelligence, are designed to recognise the best industrial free zones, where the majority of their tenants manufacture goods or provide logistics services.

This year’s awards assessed entries from 63 free zones worldwide. They were required to outline their main advantages, including incentives, infrastructure and tenant support, priority sectors, net-zero strategies, and efforts to improve governance and transparency.

JAFZA was recognised as the leading industrial zone worldwide and in the Middle East. Established in 1985, it has grown from the UAE’s first free zone with 19 companies to a vast ecosystem of industries including logistics, e-commerce, petrochemicals and automotive. This growth has aligned with that of its parent company DP World, the port and logistics multinational company owned by the government of Dubai.

Currently more than 10,000 companies have a presence in JAFZA. A major benefit for companies in the zone is that it is connected to Jebel Ali Port, the Middle East’s largest container port with an annual capacity of more than nine million standard 20-foot equivalent units (TEUs). Many tenants use JAFZA as a base from which to export, making it critical to Dubai’s leading position as a regional trade and logistics hub.

In 2023, JAFZA welcomed 400 new companies across various sectors, including factories being built by Eaton Corporation, a US-founded, Dublin-based power management company, and India’s Global Surfaces, a manufacturer of engineered quartz. According to JAFZA, the free zone attracts almost a quarter (23.9%) of Dubai’s foreign direct investment (FDI).

The free zone also has extensive experience in building bespoke infrastructure to support tenants. In February 2024, DP World broke ground on a new Agri Terminals facility in the port. It has invested USD150 million alongside Adroit Overseas Canada and Al Amir Foods. The complex will specialise in storing and processing agricultural products such as corn, soybeans, pulses and grains.

Aside from the free zone’s recent wins, the judging panel noted the mix of fiscal and non-fiscal incentives it offers investing companies. Among other benefits, JAFZA does not levy VAT and custom duties and eligible companies can also receive a discount of up to 60% in their set-up costs.

Together with recognition as a top global industrial zone, JAFZA was applauded for its ambitious evidence-backed green strategy. JAFZA aims to be carbon neutral by 2050 and is on track to achieve its 2030 target.

Multiple independent audits show its sustainability strategy has already made significant progress. Electricity generated from renewable sources made up 93% of total electricity usage in 2023. This has enabled JAFZA to cut its carbon emissions by around 57% compared to 2019 levels.

JAFZA replaces and retrofits machinery used across its zone facilities and port. It has substituted 109,000 conventional lights with more energy-efficient LED lights, retrofitted 34,000 water saving devices and planted more than 100,000 mangroves for carbon compensation.

The zone has also worked to improve its services and transparency. In 2023, JAFZA conducted more than 28,000 inspections of businesses in the zone and created a new complaint management system to reduce the time taken for customer complaints.

“We have fostered an ecosystem that drives Dubai’s economic growth and encourages innovation across various industries, from logistics and manufacturing to cutting-edge technology. Our strategic investments in infrastructure and pioneering initiatives have been key to making us an enabler of global commerce and a critical hub for organisations looking to scale,” said Abdulla bin Damithan, CEO and Managing Director of DP World.

“We’re also grateful to be recognised as Top Sustainable Zone globally, reflecting our commitment to embedding sustainability into the core of our operations, with initiatives like our rooftop solar project, the largest in the Middle East at 158,000 solar panels. As we approach our 40th anniversary in 2025, we remain committed to developing our free zone to meet the evolving needs of our customers, which has always been the foundation of our success, and doing it sustainably.”

JAFZA’s appeal to global businesses is driven by strategic initiatives that prioritise efficiency and tenant satisfaction. Its integrated logistics network offers seamless services to industries such as automotive and food and beverage, while specialised warehousing and manufacturing facilities cater to diverse sectoral needs. This broad offering has made JAFZA a highly attractive choice for companies looking to establish a footprint in the UAE and the wider GCC region.

Sovereign PPG, a registered agent in JAFZA, assists businesses with their set-up and expansion in this well-known free zone. With expertise in company formation, licensing and compliance, Sovereign PPG can help organisations navigate the set-up process in JAFZA, ensuring a smooth and efficient entry into one of the world’s leading free zones for trade and industry.

For further information, please contact Martin Zubeldia, Business Development Manager at Sovereign PPG, below.