DP World strikes deal with Zhejiang China Commodity City Group Company for mega market in Jebel Ali
DP World has partnered with Zhejiang China Commodity City Group Company (CCC) to develop a ‘Traders Market’ in Jebel Ali Freezone.
The project will span around 800,000 sq m, with phase 1, estimated at $150 million, covering about 220,000 sq m. Construction is expected to start in Q4 and take 24 months to complete.
The Traders Market will create the first smart freezone market place in the Middle-East for the retail and wholesale industries and aims to also serve the wider region. The market will allow traders to benefit from lower supply chain costs by using the world-class multi-modal infrastructure available in Jebel Ali and Dubai.
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.
Sultan Ahmed Bin Sulayem, group chairman and CEO, DP World, who will hold a majority share in the 70/30 joint venture, said: “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. We look forward to a strong and enduring partnership.”
Established in 1993, CCC, based in Yiwu, in the Zhejiang district of China, is a leading developer and operator of merchandise trading platforms. CCC’s operations include the Yiwu Permanent Fair, China Yiwu International Commodities Fair and Yiwu Imported Commodities Fair.
The marketplaces span an area of five miles with approximately 75,000 traders and tenants. The footfall to the markets exceeds 200,000 visitors per day and they attract over 500,000 international traders annually.
Zhao Wenge, group chairman, CCC Group said: “We have chosen Jebel Ali for its efficient infrastructure, business-friendly environment and significant trade with China.”
According to Dubai Customs, the value of trade between Dubai and China totalled AED36 billion ($9.8bn) in the first quarter of 2019. China has been Dubai’s top trading partner since 2014 and bilateral trade hit AED139bn in 2018.