Opening its doors on June 28 will be the Dh600 million ($163.4 million) Yiwu Market in the Jebel Ali Free Zone (Jafza). The United Arab Emirates aimed to ease supply chain shortages following the coronavirus outbreak by setting up the market.
The China Commodity City Group, which created and runs China’s largest wholesale market, partnered with port operator DP World to create Yiwu.
The Dubai Traders Market (DTM), a 5.5 million square meter bazaar in Jafza, is being built in phases, with the first being Yiwu.
“As part of a nation that is regarded as a leading global trade hub, the responsibility is on us to ensure that we make the best out of our strategic advantages and elevate its status to greater heights,” Abdulla Bin Damithan, chief executive and managing director, DP World UAE and Jafza said in a statement.
“Yiwu Market is one such solution we devised for our local traders and consumers. We saw the need for a marketplace where goods can be stored, sold, imported, and exported; all in one place, without additional charges and with the greatest possible ease.”
Dubai’s location and DP World’s logistics solutions make it possible for enterprises to take advantage of wholesale reductions while reducing supply chain costs.
“Jafza has helped traders maximize opportunities by giving them access to 60 percent of the world’s gross domestic product through air, sea, and road transport. It has also enabled efficiency in terms of procurement, fulfillment, and final sale,” Ahmad Al Haddad, chief operating officer of parks and zones at DP World UAE, said in a statement earlier this month.
“With DTM’s Yiwu Market, we hope to build on these strengths. On completion, the market will catalyze trade and the seamless movement of goods, and lower supply chain costs.”
Its infrastructure has been used to build a center for trade in the region and as a gateway to Africa and the wider Middle East under China’s Belt and Road initiative.
First-quarter commerce between the United Arab Emirates and China totaled Dh57 billion, making China the UAE’s most important commercial partner.
UAE exports, which are expected to grow at an average rate of more than 6 percent per year by 2030, will be a major contributor to global trade growth. Standard Chartered predicted in January that India and China will be the country’s primary export markets.
324 customs-bonded warehouses and 1,600 showrooms will be part of Yiwu’s 200,000 square meter development plan. According to Jafza, 99 percent of the showrooms have already been rented.
“Since China is one of our key trade partners, the market will reinforce economic and trade co-operation between the UAE and China,” Mr. Al Haddad had said earlier this month.
According to Jafza, one of the region’s largest commercial centers, Yiwu will develop a dedicated international logistics connection with the China Yiwu Market to allow competitive costs and seamless delivery.
Customers can enjoy both a free zone and an onshore environment at the market. In order to avoid any additional customs duties, it permits items to be transported directly from the airstrip or quayside into storage spaces, according to the statement.
Dubai’s trade sector will benefit from the “advanced end-to-end solutions of Yiwu Market”, Qiuming Zhang, general manager of Yiwu Market, said earlier this month.
“The market’s showrooms and warehouses make it an ideal solution for all trading needs. Companies can benefit from storage and logistics facilities, as well as enhanced reach to their buying audience, thus connecting them to key markets around the world,” Mr. Zhang said.
China’s Yiwu Market is said to have worked with DP World’s Dubai Trade in order to digitally trade with customers.
Secure e-transaction payment gateways, online inventory management, custom declarations, and hassle-free cargo gate clearances are all part of the service.
The program will also act as a trade link between the UAE and the rest of the world’s economies.
“By accommodating the facilities of international brands, Yiwu Market will act as a regional buffer for their products in case of disruptions to the supply chain and ensuring demand for these products can continue to be satisfied,” according to Jafza.
Capital and profits can be repatriated to their home countries with no tariffs, and the market will allow 100% foreign ownership.
According to Jafza, the development has installed more than 11,835 square metres of solar panels that will supply more than 20 percent of its power needs.