Jafza

Aptly named the gateway to East Africa, the Djibouti free zone in Ethiopia is one of the single most important strategic port and logistics operations to the Common Market for Eastern and Southern Africa (COMESA) and the US. Located on the horn of the continent, the Djibouti free zone is responsible for the majority of trade from Europe, Asia and the rest of Africa - so having Jafza International as the managing partner of the entire zone is not only a logical outcome, but one that ensures its strategic and financial success.

With our extensive knowledge of what makes a business hub flourish, Jafza International has implemented its international best practices by attracting corporations from across the globe with favourable investment, start up and work policies, not to mention a state-of-the-art logistics and communications infrastructure. In total, over USD 20 million has been invested in the Djibouti Free Zone, and each day that figure is rising.

One of Jafza International’s key goals is to enable fast, efficient and fruitful business through its free zones. In our experience, there is no better way of attracting business than by providing substantial benefits and incentives in terms of greater profitability, easy-to-use amenities and a quality infrastructure for any and all business concerns that sign up with us. From reduced red tape to zero percent charges on capital and profits, Djibouti Free Zone offers substantive client benefits and incentives.

The incentives and benefits offered by Djibouti Free Zone largely mirror those offered at Jebel Ali Free Zone and include but are not limited to the following:

• 100% foreign ownership
• No corporate taxes
• No import duties
• 100% repatriation of capital and profits
• No currency restrictions
• Flexible recruitment laws
• Competitive freight charges
• Cutting-edge logistics infrastructure
• Full access to ports
• World-class management practices
• Administrative support
• On-site customs

Companies accepted for operation at Djibouti Free Zone are granted one of either a trading licence, general trading licence, industrial licence, services licence, or national industrial licence by the Djibouti Ports & Free Zones Authority. These licences remain valid as long as a company maintains a current lease agreement with the Free Zone. These leases are renewable annually, so long as the lease agreement is in force between the concerned parties.

Following are details on the licences and the types of companies that may apply for them. Please refer to our guide carefully to get a better idea of what licence you may apply for, and be granted.

Pre-qualification

To qualify for establishing a company at Djibouti Free Zone, you are merely required to have a company already registered either in Djibouti or overseas (including offshore companies). Alternatively, you could form a legal entity in the free zone itself called a Free Zone Establishment (FZE) or Free Zone Company (FZCO).

Branch of a Company

There is no obligation of having minimum paid capital. A company would have to submit legal documents, including a Board Resolution calling for the establishment of a branch in the specified free zone and guaranteeing full financial commitment.

Or a company can register a new legal entity in a free zone by establishing a Free Zone Establishment (FZE) or Free Zone Company (FZCO).

The Djibouti Free Zone boasts a host of world-class facilities for office, distribution, storage and light manufacturing purposes. We’ve set the bar high for the standards upon which each unit has been built, so you are assured of simply the best spaces within which to keep your cargo, conduct value-added manufacture, or start your office operations. However you choose to work at our free zone in Djibouti, you are guaranteed facilities of the utmost quality by Jafza International, flexible and attuned to your needs.

Phase 1: Pre-built warehouse units and plots of land

In warehouses constructed under Phase 1 of our Djibouti operations, Jafza International offers 12 units of two sizes from 116 sq.m with an attached 224 sq.m office space at USD 80,400 per year or 558 sq.m warehouses with 56 sq.m offices at USD 36,840 per year.

We also offer plots of land for various uses from 1,500 sq.m to 10,000 sq.m at an annual lease rate of USD 9 per sq.m, per year.

Phase 2: Pre-built light industrial units, offices and humanitarian aid hangar

Phase 2 construction offers 34 pre-built light industrial units (LIUs) for warehousing, distribution or light manufacturing activities. Each unit covers an area of 460 sq.m plus attached office space of 50 sq.m and is leased at a rate of USD 60 per sq.m, per year.

There are also 64 office buildings for companies that wish to lease office-only accommodation for their staff and management, covering an area of 26 sq.m leased at a rate of USD 300 per sq.m, per year.

With a view to humanitarian aid operations, we also offer 9,100 sq.m of an open plan hangar for short and long-term storage of Humanitarian Aid Cargo. Aid organisations will be offered storage facilities without the requirement of registering a company with the Djibouti Ports & Free Zones Authority.

The Djibouti Ports & Free Zones Authority is the governing authority that sets the rules, directives and overarching principles for the smooth and efficient running of the current, and any future ports and free zones, in Djibouti. It is also responsible for the enforcement and implementation of these principles and directives at every free zone.

The Djibouti Ports & Free Zones Authority is instrumental in ensuring that its free zones and ports operate at only the highest global standards. By utilising its myriad experiences in successful worldwide dealings in the ports business and constantly updating its understanding of global best practices, it ensures that the all the free zones and ports under its management run like clockwork.

When you deal with us, you deal with one of the best. That’s our promise.

DPFZA is administered by Dubai International Administration (DIA), a branch of Dubai International Djibouti FZE. It is entrusted with the task of ensuring that every rule and regulation drafted for the operation of the ports and free zones under its management are in accordance with international standards, and are as investor friendly, if not more than those set out at Jebel Ali Free Zone in Dubai.

As a model for international excellence, Jafza International is constantly striving to create the optimum conditions for the fruitful continuance of sound business at its locations across the globe, and as a result, we aim to emulate the highest of those standards at Djibouti FZE too. By transferring our knowledge from key areas of successful operation, we give our businesses and investors a competitive edge unlike any available on the African mainland.

Some of the benefits we offer our clients and prospective investors are as follows:

• Simple procedures
• Minimal legislation
• Investor friendly regulations and policies
• Easy applications and quick processing times
• Attractive incentives

• Cutting-edge infrastructure and efficient operations

Jafza:

Jebel Ali Free Zone (Jafza), is one of the world’s largest and the fastest growing free zones. Established in 1985, Jafza is today home to about 6000 companies from 120 countries across the world and is the leading driver of the burgeoning UAE economy. Jafza is one of the strongest brands in the region and stands for excellence, innovation and the power of partnership.

As the leading business hub of the Middle East, it focuses on long term customer relationships and fosters alliances with global investors by providing them world class infrastructure duly supported with quality driven value added services and incentives, enabling them to avail huge business opportunities in the region, in the most efficient way.

TechnoPark:

TechnoPark is a fully owned subsidiary of Economic Zones World. It symbolizes Dubai’s vision to develop a knowledge-based technology-centric sustainable business hub, which will not only support the country’s research and development needs in its core sectors but will also support the nation’s long term economic development and growth.

TechnoPark is focused on Research, Development and Studies in the field of the country’s core economic sectors viz. Energy, Desalination & Water Resource Management, Environmental Resource Management and technology driven knowledge based industrial development. TechnoPark’s R&D initiatives focus on nurturing business ideas or new technologies in respective areas, which could be quickly translated into real-world industrial / business operations.

TechnoPark’s Research and Development initiatives are also directed at improving the existing technologies in the country’s core economic sectors to enhance their production efficiencies.

khalifa Industrial Zone, Abu Dhabi:Economic Zone World (EZW) and Abu Dhabi Ports Authority have agreed to jointly develop and operate Khalifa Industrial Zone.

Jafza International’s foray into the lucrative and dynamic Indian market has been through a landmark agreement with Tata Realty and Infrastructure Limited (a wholly owned subsidiary of Tata Sons (”TRIL”). A Memorandum of Understanding was signed between the two entities on April 22nd, 2007 - laying the foundations for a mutually beneficial partnership.

Jafza International is keen to tap into the tremendous opportunities the Indian market holds, and our MOU with Tata is a collaborative relationship centered on the investment, ownership and development of SEZs, Business Parks, Logistics Parks and other related assets across India through a 50:50 Joint Venture basis.

Our carefully thought-out gameplan for India involves a long-term strategy of establishing logistics parks and SEZs networked across the country in the key business hubs. In this endeavour, our partners have identified infrastructure and real estate as a key focus area for the group in the country, and TRIL is in the process of developing a major infrastructure portfolio across India - including airports, ports and townships.

Jafza International and TRIL share a common vision and ambition when it comes to India’s growth potential regarding SEZ development and large-scale infrastructural projects. Immediate plans consist of developing 7 business & logistics parks at key identified locations such as Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Nagpur and Cochin - to be operated exclusively by Jafza International.

One of Jafza International’s most ambitious plans involves the transformation of a dormant 1,322-acre expanse of land in Orangeburg into a massive warehouse and transportation hub, graced by a world-class logistics and business park. The $800 million project is estimated to generate between 8,000 to 10,000 sorely-needed jobs for Orangeburg County.

The property’s attractive location, just an hour’s drive from the Port of Charleston and about two hours from the Port of Savannah, grants it fantastic potential for becoming a major logistical hub in the United States. Jafza International is in talks with county public officials in negotiating mutual commitments between the company and county, state and federal bodies.

As part of the project’s initial blueprint, we will work with local consultants to quantify the project’s definitive budget and time-line, aside from meeting with key stakeholders to understand their goals and concerns during this primary planning phase. The mega project, scheduled to reach completion in 20 years time, has received tremendous support from key quarters and is widely expected to ring in an unprecedented economic boon for Orangeburg.

Jafza International and the Government of Senegal are in the process of creating the most dynamic and comprehensive free zone in the Dakar International Special Economic Zone, for trade, export and logistics services from West Africa to Europe and the rest of the world. Leveraging over 6000 companies in its Dubai network, Jafza International will make Dakar the most important strategic location for doing business in West Africa.

With an investment of USD 800 mil, Jafza International will create a state-of-the-art trade zone over 6000 hectares replete with offices, warehouses, Light Industrial Units, administrative buildings and a land use plan for an additional 10,000 hectares of land for a nearby AIBD Airport in Diass. Working closely with the Government of Senegal over three years and having conducted a variety of feasibility studies, Jafza International is slated to start construction in June 2008 and will complete the DISEZ by 2010.