Jafza posts 18 per cent revenue growth
Jebel Ali Free Zone Authority, known as Jafza, recorded an 18 per cent growth in revenues during the first quarter of 2009 compared to the same period of 2008, in spite of the economic downturn. Salma Hareb, Chief Executive Officer of the authority, said that it would refrain from hiking the fees it charges firms that operate in the zone, as part of an effort to support them during the crisis.
The global slowdown has led Jafza’s parent company, Economic Zones World, or EZW, to reassess its goals for international expansion. Yet, EZW will push ahead with Dh9 billion worth of projects in India that it plans together with the Tata Group, added Hareb, who also serves as Chief Executive Officer of EZW.
“Jafza will extend all kinds of support to companies operating in the free zone, and will continue to be sympathetic to their concern about operational cost during the current economic crisis,” Hareb told Khaleej Times in an interview.
She made clear that Jafza would offer any relief only on an individual basis and not in the form of an across-the-board reduction in fees to all customers. Jafza raised its fees often over the past few years of booming business. “However, we will be most sympathetic to our customers’ concern during these difficult times and will do all what we can to address their issues on a case-by-case basis,” she said.
More than 6,100 companies operate at Jafza, which began doing business in 1985. Jafza is the flagship brand of Economic Zones World, or EZW, which in turn is a subsidiary of government-owned Dubai World. EZW operates TechnoPark, Dubai Auto Zone and Gazeley.
“We have not been totally immune to the global economic meltdown,” Hareb said. “However, its impact had been far less severe on Jafza compared to other businesses in the region. So when others recorded negative or slower growth, Jafza posted an 18 per cent growth in the first quarter.”
She did not reveal the revenue growth figures, nor did she specify Jafza’s revenues for periods in the past.
Jafza’s financial condition remains strong, and the authority has continued to attract foreign businesses and direct investments — even in the troubled first quarter of 2009, Hareb said.
“Most of our clients have long-term interests and investment strategy. We, therefore, are not facing any drop in the number of companies operating in the zone. We continue to see demand from global investors and businesses from regions worst hit by the recession.”
Jafza said earlier this month that it was on track with its major expansion projects, which include a Light Industries Unit, or LIU -15; warehouses; a residential complex for employees; a mall that houses restaurants and a shopping centre; a Dh2.5 billion exhibition centre; and an office building for TechnoPark.
“All these projects are in the final phase of completion,” Hareb said, adding that LIU-15, which will have a 10-metre height allowance for maximum storage, will be ready for business by September 2009.
EZW, which has operations in 13 countries, is re-evaluating some of its overseas projects in light of the economic crisis, Hareb said. “We may put on hold some of the overseas projects, but all projects under way in India will go ahead.”
EZW joined hands in 2007 with a subsidiary of India’s Tata Group to develop 27 business and logistics parks across India, at a cost of Dh9 billion. The partners identified seven cities -- Mumbai, Chennai, Bangalore, Hyderabad, Nagpur, Kolkata and Cochin—as locations for business and logistics parks to be built in the first phase.
The global slowdown has led Jafza’s parent company, Economic Zones World, or EZW, to reassess its goals for international expansion. Yet, EZW will push ahead with Dh9 billion worth of projects in India that it plans together with the Tata Group, added Hareb, who also serves as Chief Executive Officer of EZW.
“Jafza will extend all kinds of support to companies operating in the free zone, and will continue to be sympathetic to their concern about operational cost during the current economic crisis,” Hareb told Khaleej Times in an interview.
She made clear that Jafza would offer any relief only on an individual basis and not in the form of an across-the-board reduction in fees to all customers. Jafza raised its fees often over the past few years of booming business. “However, we will be most sympathetic to our customers’ concern during these difficult times and will do all what we can to address their issues on a case-by-case basis,” she said.
More than 6,100 companies operate at Jafza, which began doing business in 1985. Jafza is the flagship brand of Economic Zones World, or EZW, which in turn is a subsidiary of government-owned Dubai World. EZW operates TechnoPark, Dubai Auto Zone and Gazeley.
“We have not been totally immune to the global economic meltdown,” Hareb said. “However, its impact had been far less severe on Jafza compared to other businesses in the region. So when others recorded negative or slower growth, Jafza posted an 18 per cent growth in the first quarter.”
She did not reveal the revenue growth figures, nor did she specify Jafza’s revenues for periods in the past.
Jafza’s financial condition remains strong, and the authority has continued to attract foreign businesses and direct investments — even in the troubled first quarter of 2009, Hareb said.
“Most of our clients have long-term interests and investment strategy. We, therefore, are not facing any drop in the number of companies operating in the zone. We continue to see demand from global investors and businesses from regions worst hit by the recession.”
Jafza said earlier this month that it was on track with its major expansion projects, which include a Light Industries Unit, or LIU -15; warehouses; a residential complex for employees; a mall that houses restaurants and a shopping centre; a Dh2.5 billion exhibition centre; and an office building for TechnoPark.
“All these projects are in the final phase of completion,” Hareb said, adding that LIU-15, which will have a 10-metre height allowance for maximum storage, will be ready for business by September 2009.
EZW, which has operations in 13 countries, is re-evaluating some of its overseas projects in light of the economic crisis, Hareb said. “We may put on hold some of the overseas projects, but all projects under way in India will go ahead.”
EZW joined hands in 2007 with a subsidiary of India’s Tata Group to develop 27 business and logistics parks across India, at a cost of Dh9 billion. The partners identified seven cities -- Mumbai, Chennai, Bangalore, Hyderabad, Nagpur, Kolkata and Cochin—as locations for business and logistics parks to be built in the first phase.