We’ve all heard about the “three Ts” that drive the economy of Dubai — trade, transport and tourism. The latter two are the more glamorous — glitzy shopping malls, luxurious hotels, shimmering beaches and one of the world’s best airlines, Emirates.
The trade part lacks some of that bling, but as results from DP World showed again, it is a vital component of the emirate's economic fortunes.
The DPW network links Dubai to the rest of the world in a huge spider’s web of commerce. About 55 million twenty-foot equivalent units (TEUs, the big containers that are the staple of the industry) ply the oceans each year. (Note that this is more than double the consolidated number DPW declares in its financial report.)
At the heart of this network is Jebel Ali, rapidly becoming one of the premier trading hubs in the world. It is the biggest port between Singapore and Rotterdam. It is the main commercial hub of the Arabian Gulf. It is a symbol of Dubai’s diversification away from energy dependency.
In the rest of the world last year, DPW said that conditions were mixed or challenging. Not so at Jebel Ali. The port had another record year, contributing about a quarter of the total container volume and providing the lion’s share of profits.
Along with the industrial free zone alongside the port, about 25 per cent of Dubai’s GDP passes through Jebel Ali. It is the real, but often unsung, engine of Dubai’s economic growth.
As the country gears up for Expo 2020 and seeks to enhance its leading trading position with an export-import bank, Jebel Ali can only increase in importance. Already capacity is constrained, but terminal three, set to open this year, should help to alleviate the traffic jam.
Beyond that, the planned terminal 4 will ensure Jebel Ali retains its pre-eminent position until and beyond Expo 2020.
fkane@thenational.ae
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