Islamic Inspection Service - SIILHalal

Opportunities are available at DAFZA for manufacturers of sugar, beef and poultry, coffee and non-food products such as aircraft and vehicle parts, cosmetics, and pharmaceuticals.

The Dubai Airport Freezone Authority (DAFZA) is interested in encouraging and diversifying Arab-Brazilian trade, in a bid to help make the United Arab Emirates into Brazil’s premier business and investment partner.

“The free zone is doing this by building relationships with public and private players in Brazil and the UAE. This will help enhance Dubai’s reputation as an attractive destination for global investors. DAFZA will continue to build a flourishing future that is based on innovation and cooperation,” DAFZA’s PR office told ANBA in an email interview.

According to the free zone, since Brazil is becoming established as a key food supplier to Arab countries, commercial opportunities are available for entrepreneurship in agribusiness, as well as the development of manufacturers, suppliers and distributors.

“There are relevant commercial opportunities for international trade between Brazil and the UAE for products such as sugar, poultry, beef or coffee. Also, for non-food products like aircraft spare or vehicle parts,” DAFZA said.

Brazil is the leading supplier of food and beverages to the Middle East and North Africa (MENA). Brazilian companies which exported those items to the region were worth a combined USD 9.1 billion in 2018.

“However, there remains untapped business opportunities for Brazilian companies in other sectors such as cosmetics, pharma or avionics across the Arab countries,” DAFZA pointed out.

The free zone entered into a memorandum of understanding with the Arab Brazilian Chamber of Commerce for a services-oriented partnership with the Halal Trade and Marketing Centre (HTMC). The MoU was signed during a webinar hosted by the Chamber last June.

Cofounded by DAFZA and the Dubai Islamic Economy Development Centre (DIEDC), the HTMC is a global business development center focusing on opportunities in halal economy for manufacturers, suppliers and distributors of halal products and services. Halal items are those that comply with the rules and restrictions of Islam and are therefore fit for consumption by Muslims.

The Arab Chamber-DAFZA partnership is expected to enhance and drive trade and investment flows between Dubai and Brazil, according to DAFZA, in addition to creating opportunities and prosperity for businesses in both regions.

Benefits

Benefits available to companies registered in the free zone include a business-oriented regulatory and tax environment which allows full ownership, full repatriation of earnings and high-level infrastructure.

The free zone is strategically located adjoining the Dubai International Airport, enabling quick clearance and document processing for optimal business efficiency.

“As Brazil remains the largest exporter of F&B (food and beverage) products to the MENA region, companies can benefit from the extensive cargo handling facilities and fast and efficient business rapid cargo clearance capabilities. Such offerings allow for agility and maximized opportunities with manufacturers, suppliers, and distributors of F&B products,” DAFZA argued.

DAFZA has also cut business setup costs by as much as 65%, another benefit it has been touting as part of its goal of increasing regional competitiveness and activating key sectors by attracting foreign direct investment (FDI).

“In addition, DAFZA also waived license expiry fines to relax the terms of license renewal. Allowing the restoration of legal records and licenses, the decision has helped investors renew their expired license without paying any late renewal fines. This reflects DAFZA’s constant support for the growth of business sectors and its commitment to remove all the obstacles faced by them in order to develop the economy and create a competitive, investment-friendly business environment,” the free zone said.

The free zone is playing a key role in Dubai’s economic growth, having contributed 12% to the emirate’s foreign trade in 2019. “This came as a direct result of the incentives and business facilitation services provided by DAFZA that have enhanced the attractiveness of the free zone to foreign investors. The free zone’s foreign trade results were also a result of its leading position as a hub for international companies and investors, connecting key commercial hubs worldwide, and its vital role in accelerating access to global and regional markets, including Dubai’s market,” DAFZA explained.

Complementary economies

DAFZA is working to connect Brazil and the UAE to promote economic development. “The free zone realizes that the economies of Brazil and the UAE are highly complementary with potential for significant cooperation,” it said.

The free zone also stressed that Brazil-UAE trade soared by 37.6% to almost USD 2 billion from January to August 2019. “DAFZA seeks to further develop bilateral trade and investment between the two countries by facilitating and developing the cooperation,” the free zone’s PR office said.

Source: ANBA