1.4 - Jebel Ali

Question 1

What is an FEZ?

Answer 1

• Free Economic Zone
• Used interchangeably with SEZ (Special Economic Zone)
• Businesses are subsidised with lower taxes or tax free operations for a certain period of time
• encouraged FDI and creates employment opportunities

Question 2

How has subsidisation of businesses helped in recent times?

Answer 2

Businesses in Jebel Ali were propped up by Dubai government
- allowed them to retain staff and stay in Jebel Ali
- made it easy for businesses to boom when restrictions were lifted

Question 3

What is Jebel Ali?

Answer 3

• First big FEZ in the Gulf
• one of 22 in Dubai
• has its own judicial system
• host to 1225 companies, increasing at 14-18% per year
• $1 billion of new development has been planned
• 9th busiest port in the world

Question 4

How has the US Navy contributed to Jebel Ali’s growth?

Answer 4

• 5th Fleet based in Manama Bahrain patrols Persian Gulf
• allows for goods to leave and enter port of Jebel Ali safely
• increases confidence of companies to operate in Jebel Ali

Question 5

Which trade blocs is the UAE part of?

Answer 5

GCC (Gulf Cooperation Council)
WTO
Allows for free trade within Arabian peninsula

Question 6

How has oil contributed to Jebel Ali’s success?

Answer 6

• Selling oil allows for massive subsidies to be viable
• low taxation as income from oil is large enough
• large proportion of wealth is reinvested into Jebel Ali
• $1 billion development planned

Question 7

What exists between Jebel Ali Port and DWC and DXB?

Answer 7

Customs-free corridor
No charge for items in transit

Question 8

What advantage do people working in Jebel Ali have?

Answer 8

Free access to Jebel Ali Hospital owned by Lifeline Healthcare

Question 9

How large is DWC?

Answer 9

Twice as large as the size of Hong Kong

Question 10

What proportion of Dubai’s population are expatriates?

Answer 10

85%

Question 11

How long is the Dubai metro open every day?

Answer 11

5am to 1am next day

Question 12

What major infrastructure project is the UAE now taking up?

Answer 12

A railway network to connect all 6 states of the GCC

Question 13

How has Jebel Ali benefitted the UK?

Answer 13

CEO of Etihad Rail is Richard Bowker
Has awarded engineering contracts to Atkins Engineering of the UK

Question 14

Who supplies utilities to Jebel Ali?

Answer 14

• Dubai Electricity and Water Authority (DEWA)
• Have built $23 million 132kV substation in Jumeirah Lake Towers
• laid 21km of underground cable to substation

Question 15

Who manages building projects on Jebel Ali and Dubai?

Answer 15

Imdaad and other private companies
- manage waste disposal, power, water and eco friendly equipment