DP World PLC has partnered with Zhejiang China Commodity City Group Company Ltd (CCC) to develop the ‘Traders Market’ in Jebel Ali Freezone (JAFZA).
The project, of which DP World will hold a majority share in the 70/30 joint venture, will span approximately 800,000 sq m with Phase 1 development covering around 220,000 sq m.
Construction of Phase 1 is expected to take 24 months to complete, scheduled to start in the fourth quarter of 2019, and Phase 1 Capex is estimated at US$150m.
Group chairman and CEO of DP World, Sultan Ahmed Bin Sulayem, said: “When we acquired JAFZA in 2015, our vision was to attract clients that will not only provide lease income but also bring significant origin and destination cargo, promoting Dubai as a trading hub.
“This transaction helps us achieve this vision. We believe we have found the right partner in CCC, with the relevant expertise and experience to make this project a success.”
As the first smart Freezone market place in the Middle-East for the retail and wholesale industries, the Traders Market aims to serve the wider region with a population base of over 2bn.
It will allow traders to benefit from lower supply chain costs, utilising the multi-modal infrastructure available in Jebel Ali and Dubai.
The project is also expected to benefit international traders, allowing them to procure bulk products in Dubai at wholesale prices and short delivery times to help service demand more efficiently.
Zhao Wenge, group chairman of CCC Group, said: “The Middle-East/Africa region is critical for the Belt and Road Initiative (BRI) and we aim to serve this high-growth market through the Traders Market in Jebel Al, Dubai.
“We have chosen Jebel Ali for its efficient infrastructure, business-friendly environment and significant trade with China… Together with DP World we are confident this venture will be a success.”
CCC, established in 1993, is a developer and operator of merchandise trading platforms and its operations include Yiwu Permanent Fair, China Yiwu International Commodities Fair and Yiwu Imported Commodities Fair.
These marketplaces span an area of around five miles with approximately 75,000 traders and tenants with a footfall exceeding 200,000 visitors per day and attracting over 500,000 international traders annually.