Dubai Airport Freezone (DAFZ), a member of the Dubai Integrated Economic Zones Authority (DIEZ), has entered into a Memorandum of Understanding (MoU) with the Zhuanzhuan Group, a prominent Chinese company specializing in the trading of secondhand goods. This agreement establishes the groundwork for a strategic partnership aimed at developing a cross-border supply chain for secondhand consumer goods, extending from Dubai to the broader Middle East and global markets, Dubai Media Office reported.
This collaboration embodies DAFZ’s dedication to promoting the circular economy by attracting innovative businesses to the region and nurturing a globally connected, innovation-driven business ecosystem throughout its economic zones. The initiative will bolster Dubai’s status as a global hub for sustainable trade and reinforce its role as a key trade gateway connecting Asia, Africa, and Europe.
According to the terms of the MoU, signed by Arif Al Khoori, senior vice president – Customer Care at DAFZ, and Wang Su, corporate vice president of Zhuanzhuan Group, the company will set up its regional headquarters within DAFZ. This facility will support a fully integrated supply chain encompassing recycling, quality inspection, classification, and packaging. DIEZ will provide institutional support to facilitate collaboration with logistics providers, customs authorities, clearance agents, and distribution partners, thereby enhancing operational efficiency through flexible and effective solutions.
Zhuanzhuan ranks among China’s leading secondhand goods platforms, boasting over 400 million registered users and more than 50 million monthly active users in 2024, particularly popular among Gen Z consumers. The company has a highly advanced technological and logistical infrastructure, operating over 960 physical stores across 80 cities.
The firm actively advocates for circular economy initiatives, incorporating biodegradable packaging and achieving a cumulative reduction of more than 4.1 million tons in carbon emissions.
Dubai’s vision for sustainable trade
Amna Lootah, director general of DAFZ, stated: “This partnership highlights Dubai’s commitment to attracting high-quality investments and enhancing its integration into global value chains, in line with our strategic objectives of positioning the emirate as a leading global hub for sustainable trade. This stems from our commitment to supporting international companies in their growth and innovation journeys, in alignment with the Dubai Economic Agenda D33 — which aims to double the size of Dubai’s economy by 2033, reinforce its standing among the world’s top three urban economies, and enhance its appeal as a premier global destination for business and investment.”
“Through this MoU, we are committed to streamlining procedures and fostering an enabling environment for the growth of the secondhand goods sector — particularly amid the accelerating global shift towards a circular economy. We will leverage our capabilities and networks to facilitate the establishment and operations of Zhuanzhuan, while supporting its logistics activities and distribution networks,” Lootah added.
Wang Su, corporate vice president of Zhuanzhuan Group, remarked: “We look forward to establishing new benchmarks in the secondhand goods trade across the region through this strategic partnership with DAFZ. 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.”
Read more: UAE accelerates efforts towards implementing Circular Economy Policy 2021-2031
Driving new business models in the circular economy
The agreement also delineates plans to co-develop research and specialized working papers that explore the future of the circular economy and secondhand goods trading, with the objective of establishing best practices and sustainable benchmarks for the sector.
DAFZ will offer regulatory, technical, and institutional support for Zhuanzhuan Group’s registration and integration within the Freezone, which includes facilitating customs clearance and distribution processes, as well as introductions to key partners across Dubai’s economic landscape.
In return, Zhuanzhuan Group will ensure compliance with both Chinese and Dubai technical standards, while also presenting DAFZ with potential opportunities to establish new entities from within its global supply chain partners.
This partnership is expected to play a pivotal role in fostering innovative business models within the sustainable trade ecosystem, aligning with Dubai’s strategic vision to advance a circular economy and support enterprises that leverage innovation to promote responsible consumption.
Growing potential of the circular economy
The global circular economy sector continues to grow rapidly, driven by increasing awareness of environmental sustainability and resource efficiency. According to the Ellen MacArthur Foundation, the circular economy could generate $4.5 trillion in economic benefits by 2030, highlighting the vast opportunity for business innovation and environmental impact. The World Economic Forum endorses circular trade initiatives as essential for reducing global carbon emissions and mitigating resource depletion.
Recent figures show that the global secondhand goods market was valued at approximately $35 billion in 2023, with projections to exceed $77 billion by 2030. The rise in secondhand trading is especially notable among younger generations, such as Gen Z and Millennials, who emphasize sustainable consumption. This aligns with Zhuanzhuan Group’s strong Gen Z user base and technological innovation in China’s resale platforms.
In the Middle East, Dubai’s strategic investments in integrated economic zones like DAFZ are supported by authoritative reports from Dubai Statistics Center and the Dubai Chamber of Commerce, which reflect growing foreign direct investment inflows and diversification away from oil dependency towards sustainable industries. The Dubai Economic Agenda D33, monitored by the Dubai Department of Economy and Tourism, underlines priorities for sustainable economic growth and business-friendly policies, which underpin this MoU’s framework.
Institutional stakeholders such as the International Trade Centre (ITC) and UN Environment Programme (UNEP) have released assessments emphasizing the benefits of circular economy practices in creating green jobs and promoting inclusive economic development in emerging markets—goals shared by Dubai and Zhuanzhuan through their partnership.
The annual Dubai Sustainability Report and ongoing research from the World Bank on trade facilitation in free zones provide corroborating data highlighting the importance of infrastructure and regulatory support in enabling efficient circular trade ecosystems, with free zones like DAFZ playing a pivotal role.
