Constructive move by Jebel Ali Free Zone

JAFZA MOVED ADDITIONAL CONTAINERS DURING PANDEMIC

Direct and immediate intervention helped minimise supply chain issues for companies — especially those dealing in building materials — based in the free zone, according to Jebel Ali Free Zone Authority.

The port and free zone operator DP World — UAE Region came up with an “additional movement” of 10,300 plus containers solely for the construction sector, via Jebel Ali Port between April and October 2020. “Business continuity was given top priority and actions were taken to ensure the continuation of business operations for every customer in the free zone,” said a statement from JAFZA.

Strict protocols

“During the peak of Covid-19 in 2020, border closures and enforced protocols on entry of truck drivers to the neighbouring countries, heavily impacted road movements in the region, especially Saudi Arabia. Immediate implementation of safety measures such as no outside visitors in the premises, temperature checks, limited workforce working in shifts and optimum level of sanitisation safeguarded each company’s functionality.

“Day-to-day activities of steel and construction related companies were particularly addressed. The tough challenges created due to Covid-19 were recognised and easier rental terms including flexible and deferred rental payments were offered to the free zone customers.”

The rating agency Fitch estimates the construction market contracted by a 10.4 per cent last year “due to hindrances such as supply chain issues, project delays, financing constraints and weak investment capacity of companies”.

The UAE and Gulf construction sector is still counting the cost of the unprecedented increase in material prices, especially those where they have to

rely almost exclusively on imports. Incidentally, the UAE’s steel and metal demand has made it the largest consumer in the region.

JAFZA currently provides services to over 3,300 construction-related companies, enabling trade worth Dh17 billion in 2020. This represents 29 per cent of total constructionrelated trade in Dubai last year.