Dubai Airport Freezone (DAFZ) has signed a Memorandum of Understanding (MoU) with China’s Zhuanzhuan Group to set up a Middle East base for second-hand consumer goods, with Dubai to act as a key export hub to the region and international markets.
Deal Overview
As reported by Emirates News Agency, the MoU was signed by Arif Al Khoori, Senior Vice President of Customer Care at DAFZ, and Wang Su, Corporate Vice President of Zhuanzhuan.
Under the agreement, Zhuanzhuan will open its regional headquarters in DAFZ, where it will establish a full-fledged supply chain operation, including recycling, quality inspections, sorting, and packaging of goods.
Dubai Integrated Economic Zones Authority (DIEZ) will offer logistical and customs support to Zhuanzhuan by coordinating with freight firms, clearance agents, and distribution networks.
“We are confident that Dubai will serve as an ideal gateway to regional markets, thanks to its advanced infrastructure, trade facilitation services, logistical efficiency, and strategic geographic location,” noted Wang Su.
DAFZ will support the company through every regulatory and administrative step for registration, while also helping connect it with other Dubai-based industry stakeholders.
Zhuanzhuan confirmed that its new operations would comply with all Chinese and Dubai standards, and it would explore relocating additional international partners to the UAE through the free zone.
The partnership also includes plans to jointly develop research reports and industry benchmarks on the circular economy and second-hand goods trade.
Key Figures
Zhuanzhuan currently has more than 400 million registered users and 50 million monthly active users, operating across 960 stores in 80 Chinese cities. Its strongest audience is the Gen Z demographic.
UAE-China Strategic Alignment
China continues to be the UAE’s top trading ally, while the UAE is China’s largest partner in the Middle East and North Africa. Over 15,500 Chinese firms have operated in the UAE, with Abu Dhabi experiencing a 69.4% increase in new business registrations last year alone.
Chinese firms have so far invested over $6 billion in the UAE across a diverse range of sectors.
Earlier this year, Abu Dhabi officials visited China and signed cooperation pacts with Chinese government bodies and corporates, including a strategic agreement with Shanghai authorities and discussions with companies like ByteDance, Xiaomi, and BYD.
What Lies Ahead
Bilateral trade between the two nations is expected to grow to $200 billion (AED 734 billion) by the year 2030.
