Jebel Ali Free Zone reached record revenues of Dh1.53 billion last year as rents in Dubai’s industrial district soared, pushed up by increased demand amid government plans to build the world’s leading logistics hub in the emirate.
The free zone is an industrial area exempt from foreign ownership restrictions. It rents out warehouse space to companies, and is located close to several of Dubai’s zoned industrial and logistics areas, and the Jebel Ali Port.
JAFZ paid down a big chunk of its outstanding debts last year, while annual profits rose to Dh690 million from Dh 252m, according to a London Stock Exchange filing.
“JAFZ’s fundamentals are very strong,” said Edward Batten, associate director at Knight Frank, a property consultancy. “It’s a household name … [and] the busiest port outside of Asia.”
Rents, which currently stand at about Dh36 per square foot for industrial space at JAFZ, increased by 19 per cent in the second half of 2013, and are trending up, according to data from Knight Frank.
“We’re seeing a big squeeze on available stock,” said Mr Batten. “There’s a lot of leasing activity,”
Industrial, manufacturing and logistics firms account for the highest number of rental inquiries for the JAFZ site, followed by the food and beverage sector, according to the data.
Profit increases were driven by a major fall in costs, following the transfer of an “integrated facility complex”, believed to be its conference centre, to its parent company. In exchange for this, Dubai World paid Dh1.1bn toward reducing the free zone’s debt pile, according to the filing.
This move enabled the free zone to cut its gearing ratio – which measures the company’s debts as a proportion of total capital held – from 50 per cent in 2012 to 39 per cent in last year.
JAFZ issued a Dh2.38bn Islamic bond in 2013, which is set to mature in 2019. That is in addition to a term loan of Dh4.4bn, of which Dh1.81bn has so far been repaid.
The transfer of the building also helped to cut the free zone’s costs.
“JAFZ didn’t continue with the investment [in the conference centre] because they would have completed it at the wrong time in the market,” said Mr Batten. “[But] we’re now seeing real growth in the market, and big inquiries in the office sector. Will start doing deals there sooner rather than later.
“The conference centre is probably going to come to market at a very good time,” he said.
JAFZ, which covers an area of 56 sq kilometres, owns an estimated Dh6.13bn of investment property, according to the filing.
“We enjoy the advantage of having the port, the free zone, the logistics corridor and the Al Maktoum airport with a small area,” said Hisham Al Shirawi, JAFZ’s chairman. “That’s the biggest and most efficient logistics corridor in the world – [cargo can move] from sea to plane in no time.”
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
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Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
UAE currency: the story behind the money in your pockets
MATCH SCHEDULE
Uefa Champions League semi-final, first leg
Tuesday, April 24 (10.45pm)
Liverpool v Roma
Wednesday, April 25
Bayern Munich v Real Madrid (10.45pm)
Europa League semi-final, first leg
Thursday, April 26
Arsenal v Atletico Madrid (11.05pm)
Marseille v Salzburg (11.05pm)
UAE currency: the story behind the money in your pockets
JAPAN SQUAD
Goalkeepers: Masaaki Higashiguchi, Shuichi Gonda, Daniel Schmidt
Defenders: Yuto Nagatomo, Tomoaki Makino, Maya Yoshida, Sho Sasaki, Hiroki Sakai, Sei Muroya, Genta Miura, Takehiro Tomiyasu
Midfielders: Toshihiro Aoyama, Genki Haraguchi, Gaku Shibasaki, Wataru Endo, Junya Ito, Shoya Nakajima, Takumi Minamino, Hidemasa Morita, Ritsu Doan
Forwards: Yuya Osako, Takuma Asano, Koya Kitagawa
THE SPECS
Engine: 2.0-litre four-cylinder turbo
Transmission: eight-speed automatic
Power: 258hp at 5,000-6,500rpm
Torque: 400Nm from 1,550-4,400rpm
Fuel economy, combined: 6.4L/100km
Price, base: from D215,000 (Dh230,000 as tested)
On sale: now
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THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
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THE BIO: Mohammed Ashiq Ali
Proudest achievement: “I came to a new country and started this shop”
Favourite TV programme: the news
Favourite place in Dubai: Al Fahidi. “They started the metro in 2009 and I didn’t take it yet.”
Family: six sons in Dubai and a daughter in Faisalabad
COMPANY%20PROFILE
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Result
6.30pm: Al Maktoum Challenge Round-3 – Group 1 (PA) $65,000 (Dirt) 2,000m; Winner: Brraq, Ryan Curatolo (jockey), Jean-Claude Pecout (trainer)
7.05pm: Handicap (TB) $65,000 (Turf) 1,800m; Winner: Bright Melody, James Doyle, Charlie Appleby
7.40pm: Meydan Classic – Listed (TB) $88,000 (T) 1,600m; Winner: Naval Crown, Mickael Barzalona, Charlie Appleby
8.15pm: Nad Al Sheba Trophy – Group 3 (TB) $195,000 (T) 2,810m; Winner: Volcanic Sky, Frankie Dettori, Saeed bin Suroor
8.50pm: Dubai Millennium Stakes – Group 3 (TB) $130,000 (T) 2,000m; Winner: Star Safari, William Buick, Charlie Appleby
9.25pm: Meydan Challenge – Listed Handicap (TB) $88,000 (T) 1,400m; Winner: Zainhom, Dane O’Neill, Musabah Al Muhairi
MATCH INFO
Uefa Champions League semi-finals, second leg:
Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE
Game is on BeIN Sports
HOW TO WATCH
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