DP World has announced a partnership with Zhejiang China Commodity City Group Company LTD (CCC) to develop the ‘Traders Market’ in Jebel Ali Freezone (JAFZA).
In the joint venture of 70/30 DP World will retain a majority share.
The Traders Market project will cover about 800,000 square meters, with the construction of Phase 1 covering about 220,000 square meters.
Phase 1 Capex is estimated at USD $150 million, with building anticipated to begin in 4Q 2019 and be completed for 24 months.
The Traders Market will develop the Middle East’s first intelligent Freezone marketplace for retail and wholesale sectors and seeks to serve the broader area with over 2 billion population base.
By using the world-class multi-modal infrastructure available in Jebel Ali and Dubai, the market will enable traders to benefit from reduced supply chain expenses.
According to a statement, international traders will be able to procure bulk products in Dubai at wholesale prices with the shortest delivery times and will be able to service demand more efficiently
Zhejiang China Commodity City Group, established in 1993, is a major merchandise trading platform developer and operator based in Yiwu, China’s Zhejiang district. CCC operations include the Permanent Fair of Yiwu, the Fair of China Yiwu International Commodities and the Fair of Yiwu Imported Commodity. With roughly 75,000 traders and tenants, these marketplaces span an area of about 5 miles. The market footfall exceeds 200,000 tourists per day and annually attracts more than 500,000 global traders.
Sultan Ahmed Bin Sulayem, Group Chairman and CEO at DP World, said, “We are excited to announce this partnership with China Commodity City to develop the Traders Market.
“This investment showcases our trade-enabling strategy as we look to catalyse trade and the movement of goods through removing inefficiencies and lowering supply chain costs.
“We are delighted that CCC has chosen Jebel Ali Freezone as its exclusive investment in the region, highlighting DP World’s ability to attract trade through its best-in-class infrastructure and emphasising Dubai’s position as the regions premier trading hub.
“When we acquired Jebel Ali Freezone 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 achieves this vision. We believe we have found the right partner in CCC, with the relevant expertise and experience to make this project a success.
Zhao Wenge, Group Chairman at 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 Ali, Dubai.
“We have chosen Jebel Ali for its efficient infrastructure, business-friendly environment and significant trade with China.
“The CCC group has a wealth of experience and a strong reputation for developing and operating efficient large-scale trading marketplaces. Together with DP World we are confident this venture will be a success.