Matrade urges local firms to tap into global market via Jafza in Dubai
KUALA LUMPUR: The Malaysia External Trade Development Corporation (Matrade) has urged local companies to tap into the global market via Jebel Ali Free Zone (Jafza) in Dubai, United Arab Emirates (UAE).
Matrade deputy chief executive officer Datuk Dzulkifli Mahmud said local firms should utilise the free zone to capitalise on the markets in the Indian sub-continent, Central Asia, Middle East and East and West Africa.
“We should utilise Jafza as a hub to venture into those markets and we would like to have a direct trade with the countries mentioned, however, due to logistics issue, it restricts us from having direct trading with the countries,” he told reporters after the Jafza roadshow seminar in conjunction with Mihas 2014.
Dzulkifli also said Jafza offered competitive price in terms of rental, coupled with the fact that its facilities are complete.
He also said bilateral trade between Malaysia and the UAE totalled at RM1 billion per month and total trade amounted to some RM15 billion annually.
“Within the West Asian region and Gulf Cooperation Council (GCC) countries, UAE is Malaysia’s largest trading partner, largest export destination and the largest import source,” he added.
To date, there are 16 Malaysian companies operating in Jafza mainly in trading of building materials, electronics and electrical products, equipment and machines, household and furniture, foodstuff and beverages, motor vehicles and auto spare parts, perfumery, medicine and beauty and structural steel manufacturing.
Dzulkifli also said among the companies that have expanded their business in Dubai are Marrybrown and PappaRoti.
Meanwhile, Jafza chief commercial officer Ibrahim Aljanahi said by 2017, food and beverage (F&B) imports by the UAE is forecast to increase by 36.9 per cent while total F&B exports are expected to grow by 30.8 per cent.
“Some 44 per cent of the F&B exports from Jafza goes to the Middle East region.
Jafza offers opportunities for companies which interested to operate in the free zone,” he added.