The Dubai Airport Freezone Authority (DAFZA) has signed a memorandum of understanding (MoU) with the Chinese company, Guo Guo Group, which specializes in the trade of used goods. This agreement lays the groundwork for a strategic partnership aimed at developing a cross-border supply chain for the trade of second-hand consumer products, originating from Dubai and reaching markets across the Middle East and beyond.
This initiative reflects DAFZA’s commitment to fostering a circular economy by facilitating the entry of key players in this sector to regional markets and providing a comprehensive business ecosystem through its economic zones, thereby enhancing Dubai’s status as a global hub for sustainable trade.
Dubai is strategically positioned as a gateway connecting Asia, Africa, and Europe. Under the MoU, signed by Aref Al Khoury, Senior Vice President of Customer Services at DAFZA, and Wang Su, Vice President of Guo Guo Group, the latter will establish a base within the Dubai Airport Freezone to develop an integrated supply chain that includes recycling, quality inspection, classification, and packaging.
In parallel, DAFZA will support connections with relevant entities, including logistics companies, customs, clearance agents, and distribution partners, to enhance operational efficiency and offer flexible and effective solutions.
Guo Guo Group stands out as a leading Chinese enterprise in the used goods trade, boasting over 50 million active users on its platforms as of 2024, with total registered users exceeding 400 million, the majority of whom belong to Generation Z.
The company possesses advanced technological and logistical infrastructure, which encompasses more than 960 physical stores across 80 cities. It also spearheads significant initiatives in the circular economy, such as utilizing biodegradable packaging and achieving a cumulative reduction in carbon emissions exceeding 4.1 million tons.
Dubai’s Approach
Amna Lootah, Director General of DAFZA, stated that “this partnership extends Dubai’s approach in attracting quality investments and enhancing its role within global value chains, aligning with our strategic objectives to establish the emirate as a global center for sustainable trade.
She added that this effort is part of their commitment to support global companies in their expansion and innovation journeys, contributing to the targets outlined in Dubai’s economic agenda D33, which aims to double the emirate’s economy in the next ten years and solidify its position as one of the top three economic cities worldwide, boosting its appeal as a prime destination for business and investment.”
Lootah emphasized that through this MoU, they aim to simplify procedures and create a supportive environment for the growth of the used goods sector, particularly amid the global shift towards a circular economy.
She further stressed that they will leverage their capabilities and networks within the economic zones to facilitate the establishment and operation of Guo Guo Group, supporting its logistics operations and distribution chains.
Wang Su, Vice President of Guo Guo Group, expressed enthusiasm about contributing to the establishment of new standards in the used goods trade in the region, viewing the partnership with DAFZA as a pivotal step in their global expansion journey.
She affirmed that Dubai will serve as an ideal launchpad for regional markets, thanks to its advanced infrastructure, trade facilitation, logistical efficiency, and strategic location.
This collaboration also entails both sides studying the potential development of specialized working papers addressing the future of the used goods trade and circular economy, which will help set benchmark standards to support the sustainability of this sector regionally.
The key areas of collaboration between both parties will additionally include DAFZA providing the necessary technical and institutional support for the registration of Guo Guo Group in the freezone, facilitating customs clearance and distribution processes, and offering appropriate guidance on customs policies and quality requirements, as well as connecting the company with relevant partners within Dubai’s economic ecosystem.