The UAE, especially Dubai, is synonymous with towering skyscrapers and futuristic architectural marvels. The UAE’s construction sector, therefore, played a key role in the country’s growth and transformation from a desert area to a dynamic global market with modern structures. As per a report from Mordor Intelligence, the UAE construction sector is likely to witness speedy growth reaching a value of AED 490.5 billion (USD 133.53 billion) by 2027 over the forecast period (2022-2027). The Jebel Ali Free Zone (Jafza) is positioned as a key contributor to the UAE’s construction sector growth with its world-class infrastructure, wide range of licenses, and ease of doing business.
The process of business setup in Jafza is generally regarded as ideal for construction sector businesses. The process can be simplified by applying through business setup consultants in Dubai. Now, let us check why the landscape of company formation in Jafza is ideal for construction companies. Read ahead for more information:
A Dedicated Cluster for Metal, Steel and Construction Firms
Jafza boasts of a dedicated Metal, Steel and Construction cluster valued at AED 26.7 billion. As of 2021, the Jafza Metal, Steel and Construction cluster houses over 1,000 companies from 89 countries. The cluster at Jafza accounts for approximately 30 percent of Dubai’s sectoral trade of AED 92 billion. The metal, steel and construction cluster spreads over 3.4 million square meters and offers a conducive environment for both trade and manufacturing companies in the sector.
Proximity to the Jebel Ali Port
One of the top benefits of setting up a business in Jafza is its proximity to the Jebel Ali Port. The port offers construction firms access to more than 3.5 billion existing and potential consumers in the Middle East Africa South Asia (MEASA) region. The Jebel Ali Port is the largest port operating between Rotterdam and Singapore and possesses the ability to can handle all types of cargo including breakbulk.
Easy access to Jebel Ali Port is critical for construction sector companies as it also offers several value-added services such as assembling, warehousing, transport management, manufacturing and fabrication facilities. The port also offers exclusive benefits like competitive ocean freight rates, operational flexibility, landside conversion, and land for storage and logistics facilities. Consult with business setup advisers in Dubai for more information on the Jafza license.
Presence of Major Construction Firms
The environment of company incorporation in Jafza has attracted the attention of the major regional and global names in the construction sector. Jafza’s robust industrial ecosystem and value-added services have led to several success stories in the industry including Conares Steel, Danube Building Materials, Capital Steel, ArcelorMittal, and more.
Excellent Facilities for Construction Sector
Apart from the industry leaders. Jafza continues to attract SMEs and multinationals through excellent facilities such as customisable manufacturing plots, Light Industrial Units (LIUs)/ warehouses, offices and ready-to-move-in showrooms. Company setup consultants in Dubai can advise you more on the facilities offered by the free zone authority.
Attractive Business Incentives
Setting up a company in Jafza will make you eligible for a diverse range of attractive benefits. For example, foreign investors can have 100% ownership of their companies. Other benefits of starting a Jafza company include onsite customs and zero per cent duties on import/export or re-export. You can consult with business setup advisers in Dubai for further information on the incentives offered by Jafza.
Multimodal Connectivity
Strategically located between Jebel Ali Port and Al Maktoum International Airport, Jafza delivers excellent multimodal connectivity that will help you meet all your logistics need. The free zone has more than 77 berths across 23 km of the quay, linked to more than 16,800 km of the road network. Moreover, the free zone provides integrated services such as dry and temperature-controlled cargo handling and storage, warehousing facilities, freight forwarding and customs brokerage.
Designated Zone for Value-Added Tax
Jafza has been listed as a VAT-designated zone by the Federal Tax Authority (FTA). Foreign investors opening a company in the Jafza can benefit from not paying VAT for any goods transferred between and within designated zones. Consult with business formation consultants in Dubai to make the most of this benefit.
Hire the Best Business Setup Advisers in Dubai, UAE
The process of business setup in JAFZA involves many steps and paperwork for which you can seek the help of a business setup consultant. Hiring business setup consultants in Dubai such as Jitendra Business Consultants (JBC) will help you start your business without any delay. JBC’s core strength is its highly qualified team of consultants who are well-versed in all the free zone regulations and requirements.
Apart from helping you select the business activities and facilities, JBC provides services including company registration, visa processing, drafting of MoA, and help with Economic Substance Regulations (ESR) compliance. JBC is committed to standing strong with the clients in all the processes from company registration to incorporation, thereby helping the investors achieve their entrepreneurial dreams in Dubai.
