São Paulo- The Jebel Ali Free Zone (Jafza), in Dubai, posted record-high revenues at US$ 416.56 million in 2013, due to rising rent prices as a result of strong demand. The information was released by newspaper The National, from Abu Dhabi.
The free zone is an industrial hub devoid of restrictions toward foreign ownership. Facilities are rented out to different companies, and the site is located close to other industry and logistics areas, including the Jebel Ali Port and the new Al Maktoum Airport.
Jafza paid a significant portion of its outstanding debt last year, having posted US$ 187.8 million in net profit as per a report from the London Stock Exchange. Rent prices at the free zone are currently US$ 9.80 per square foot, up 19%. The average price increased in the second half of 2013 and should increase further, according to real estate consultancy Knight Frank, the newspaper has reported.
Industries and logistics companies account for the bulk of rental at the free zone, followed by food and beverage companies. According to the British firm’s report, the increase in profit was driven by a major cut in spending following the transfer of a facility to Dubai World, Jafza’s controller company. In return, Dubai World has paid US$ 299.4 million in order to reduce the free zone’s indebtedness level.
According to the report, Jafza, which spans 56 square kilometres, boasts approximately US$ 1.668 billion worth of property. “We have taken advantage of having the port, the free zone, the logistic corridor, and the Al Maktoum Airport within a small area,” said Jafza chairman Hisham Al Shirawi. “This is the largest, most efficient logistic corridor in the world, [the cargo can be loaded] off ships and into planes immediately.”
*Translated by Gabriel Pomerancblum
