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Dafza posts resilient performance despite challenging environment

August 1, 2021
finance & economy

Free zone marks a significant growth in sales revenue and the number of registered companies in the first half of 2021

The Dubai Airport Freezone Authority (Dafza) on Saturday announced resilient performance during the first half by registering significant growth in sales revenue and the number of registered companies despite a challenging environment across the world.

Latest data showed that Dafza sales revenue rose 8.3 per cent during the January-June 2021 as the free zone registered 24 per cent year-on-year growth in leases areas this year.

The free zone also registered strong year-on-year growth of 88.4 per cent in the number of registered companies due to launch of economic incentives and packages to attract new investors. Dafza maintained its position as a preferred destination for multinational companies and succeeded under the current circumstances in increasing the number of registrations for those companies by 23.5 per cent.

Dubai in positioning Dubai as the capital of the global economy. Our results were an expected response to the recovery of the global trade movement and the opening of markets, proving the high confidence the emirate enjoys globally,” he said.

He said the emirate will be hosting the upcoming major global event Expo 2020, which will shed light on the exceptional experience led by the UAE and the emirate of Dubai in directing and attracting investments and creating opportunities. “This means the coming phase will be a promising period of recovery that will positively reflect on our economy and the other neighboring markets,” Sheikh Ahmed added.

Contributions to Dubai economy

Dafza contributed significant share to Dubai’s economy as its total trade reached more than $39 billion in the first quarter of 2021, reflecting an increase of 4.7 per cent compared to the same period in 2020. The free zone also achieved a trade surplus of Dh2.44 billion, reflecting its contribution to Dubai’s trade accounted for 11 per cent during the first quarter of 2021.

In terms of goods, the group of machinery, television, and electrical equipment and pearls, semi-precious stones, and metals accounted for 94 per cent of Dafza’s trade. The first group achieved high growth of 32.4 per cent in the first quarter of 2021, where the value of the group’s imports amounted to Dh14.1 billion and the importance of exports Dh15.7 billion.

China was Dafza’s biggest trade partner, which accounted for 31 per cent of the free zone’s trade in the first quarter of this year. It witnessed a high growth of 56.4 per cent compared to the same period, and its imports amounted to 64 per cent.

Dafza also supported small and medium-sized companies by providing advanced solutions that create opportunities for commercial and service expansion in the region. It recorded an increase in the number of small and medium companies by 96.4 per cent compared to the same period last year.

Robust performance

Dr Mohammed Al Zarooni, director-general of Dafza, said the free zone proves its ability to record exceptional and robust results in light of the challenges posed by the global trade movement.

“Dafza is keen to continue its engagement with strategic and new markets and expand its high attractiveness with its integrated business solutions. By doing this, Dafza is adding real value to the existing customers and new companies looking to establish business and trade through the emirate of Dubai,” he said.

He said the free zone also plays a key role in supporting the direction of the UAE and the emirate of Dubai in economic diversification, as Dafza supports more than 1,800 companies across more than 20 economic sectors.

“Dafza’s flexibility of its business environment and continuous effort to support the operations of companies is delivered through providing various incentives that enable businesses to achieve strategic objectives across different markets. This year will include key initiatives and projects for Dafza that will solidify its position as a pivotal economic contributor to the emirate of Dubai,” Al Zarooni added.

khaleejtimes

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