DP World PLC announced last week a partnership with Zhejiang China Commodity City Group Company LTD (CCC) to develop the 'Traders Market' in Jebel Ali Freezone (JAFZA).
DP World will hold a majority share in the 70/30 joint venture and CCC the minority share. The Traders Market project will span approximately 800,000 square metres, with Phase 1 development covering approximately 220,000 square meters.
Phase 1 Capex is estimated at USD 150 million, with construction expected to start in 4Q2019 and take 24 months to complete.
The Traders Market will create the first smart Freezone market place in the Middle-East for the retail and wholesale industries and aims to serve the wider region with a population base of over 2 billion. The market will allow traders to benefit from lower supply chain costs by using the world-class multi-modal infrastructure available in Jebel Ali and Dubai. International traders will be able to procure bulk products in Dubai at wholesale prices with the shortest delivery times and will be able to service demand more efficiently.
Established in 1993, Zhejiang China Commodity City Group, based in Yiwu, in the Zhejiang district of China, is a leading developer and operator of merchandise trading platforms. CCC’s operations include the Yiwu Permanent Fair, China Yiwu International Commodities Fair and Yiwu Imported Commodities Fair. These marketplaces span an area of some 5 miles with approximately 75,000 traders and tenants. The footfall to the markets exceeds 200,000 visitors per day and attracts over 500,000 international traders annually.
KWM partner, Han Yun and associate, Lin Xiaoping (both in Hangzhou) and KWM's Middle East Head of Corporate, Shawn Davis and associate, Brendan Palmer (both in Dubai) advised CCC on the matter.
Han Yun said, “I am delighted to be advising CCC, The Traders Market is an exciting and innovative development and will allow for dynamic trade opportunities in this space.”
Shawn Davis said, “KWM is proud to be advising on this pioneering project. The Middle East is essential to the Belt & Road Initiative (BRI) and CCC has a very important role to play in this market."