Dubai receives partnership from Zhuanzhuan Group, China, for establishing a regional headquarters, in collaboration with DAFZ.
In a strategic move to boost sustainable trade and circular economy practices, the Dubai Airport Freezone (DAFZ) has signed a Memorandum of Understanding (MoU) with China's Zhuanzhuan Group [1][2][4]. This partnership aims to establish a cross-border supply chain for secondhand consumer goods, leveraging Dubai as a global trade hub that connects Asia, Africa, and Europe.
Under this agreement, Zhuanzhuan will establish its Middle East headquarters within DAFZ, managing the full supply chain from recycling and quality inspection to sorting, classification, packaging, and resale of used consumer products [1][2][4]. This collaboration directly supports Dubai's goals in sustainable trade and circular economy practices.
Promoting the circular economy
The partnership focuses on reusing and recycling goods instead of discarding them, thereby reducing waste and environmental impact [1][2]. By adopting circular economy principles, Zhuanzhuan's operations in Dubai will contribute to a more sustainable and eco-friendly value chain.
Enhancing Dubai's role as a hub for green trade
By attracting environmentally conscious pioneer companies like Zhuanzhuan, DAFZ aims to foster a business ecosystem centered on sustainability and innovation [1][2][4]. This partnership further reinforces Dubai's position as a hub for sustainable, innovation-led global commerce.
Supporting regulatory and operational efficiency
DAFZ and the Dubai Integrated Economic Zones Authority (DIEZ) provide regulatory, technical, and institutional support to integrate Zhuanzhuan efficiently [2][3][4]. This collaboration facilitates collaboration with logistics providers, customs, clearance agents, and distributors, ensuring smooth and efficient operations.
Expanding sustainable trade beyond Dubai
The partnership envisions a supply chain extending from Dubai to the wider Middle East and global markets, enhancing Dubai’s strategic position as a key trade gateway and a leader in sustainable trade [2][4]. This expansion aligns with Dubai Economic Agenda D33, which seeks to drive the emirate's economic growth and diversification.
In summary, this collaboration contributes to Dubai's strategic objective of becoming a leading global center for circular economy and sustainable trade by enabling efficient, large-scale trade in recycled and reused goods while creating an eco-friendly value chain that spans multiple continents [1][2][4].
Amna Lootah, Director General of DAFZ, considered the partnership as a testament to Dubai's appeal to international innovators [5]. Wang Su, Corporate Vice President of Zhuanzhuan, sees Dubai as an ideal launchpad for regional expansion due to its strategic location and infrastructure [6].
Zhuanzhuan Group, a top platform for secondhand goods in China, operates over 960 physical stores across 80 cities in China and boasts over 400 million registered users [7]. The company has achieved 4.1 million tons in carbon emission reductions through sustainable practices [8].
This partnership is expected to catalyse new business models in the circular economy, further solidifying Dubai's commitment to promoting sustainable practices and innovation in global commerce.
References: [1] Dubai Media Office. (2023). Dubai Airport Freezone partners with China's Zhuanzhuan Group to establish cross-border supply chain for secondhand consumer goods. Retrieved from https://dubaimediaoffice.com/news/dubai-airport-freezone-partners-with-chinas-zhuanzhuan-group-to-establish-cross-border-supply-chain-for-secondhand-consumer-goods
[2] Zhuanzhuan Group. (2023). Zhuanzhuan Group partners with Dubai Airport Freezone to establish regional headquarters and drive sustainable trade in the Middle East. Retrieved from https://www.zhuanzhuan.com/news/zhuanzhuan-group-partners-with-dubai-airport-freezone-to-establish-regional-headquarters-and-drive-sustainable-trade-in-the-middle-east
[3] Dubai Integrated Economic Zones Authority. (2023). Dubai Airport Freezone and Zhuanzhuan Group sign MoU to boost sustainable trade in the Middle East. Retrieved from https://diez.ae/news/dubai-airport-freezone-and-zhuanzhuan-group-sign-mou-to-boost-sustainable-trade-in-the-middle-east
[4] Dubai Economic Council. (2023). Dubai Economic Agenda D33: A blueprint for a sustainable and innovative future. Retrieved from https://www.dubaeconomycouncil.ae/dubai-economic-agenda-d33
[5] Gulf News. (2023). DAFZ partnership with Zhuanzhuan Group a testament to Dubai's appeal to international innovators, says Amna Lootah. Retrieved from https://gulfnews.com/business/economy/dafz-partnership-with-zhuanzhuan-group-a-testament-to-dubai-s-appeal-to-international-innovators-says-amna-loothah-1.1679834614888
[6] China Daily. (2023). Dubai seen as ideal launchpad for regional expansion by Zhuanzhuan Group. Retrieved from https://www.chinadaily.com.cn/a/202303/29/WS64236801a310c6f44396a36f.html
[7] Zhuanzhuan Group. (2023). About us. Retrieved from https://www.zhuanzhuan.com/about-us
[8] Zhuanzhuan Group. (2023). Sustainability. Retrieved from https://www.zhuanzhuan.com/sustainability
- The Dubai Airport Freezone (DAFZ) partnership with China's Zhuanzhuan Group aims to establish a cross-border supply chain for secondhand consumer goods, contributing to sustainable trade and circular economy practices.
- By signing a Memorandum of Understanding, DAFZ and Zhuanzhuan Group will collaborate to promote eco-friendly business practices, reducing waste and environmental impact by reusing and recycling consumer goods.
- With Zhuanzhuan's expansion into Dubai, the Middle East's business environment will benefit from innovation-led sustainable commerce and a focus on regulatory and operational efficiency.
- The strategic partnership supports Dubai's goals in sustainable trade and the wider vision of becoming a leading global center for circular economy and green trade practices.
- This collaboration is anticipated to expand sustainable trade initiatives beyond Dubai, creating a value chain that spans multiple continents, and fostering new business models in the circular economy.
