Dubai Airport Free Zone Authority (DAFZA) achieved a series of remarkable financial results in the first nine months of 2020 in comparison to the same period in 2019 including: trade amounting to Dhs87.4 billion, contributing 10% to Dubai’s trade and a trade surplus amounting to Dhs10.6 billion.
The most notable results achieved by DAFZA during the first nine months of 2020 include: an increase of 7.62% in sales revenues, and 64.11% increase in the number of registered companies. This year DAFZA also is celebrating its silver jubilee.
Commenting on the 2020 results, H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Airport Freezone Authority (DAFZA), expressed that 2020 was an extraordinary year that posed major challenges for various vital sectors.
He said: “We are proud of the exceptional approach the government of Dubai took under its wise leadership to provide all kinds of support, which reaffirms the emirate’s reputation in terms of challenging the impossible to adjust and revitalise commercial and economic movement.
“The results achieved by DAFZA and its business community during 2020, the investors’ confidence and other various indicators give a positive outlook on the short and long term for economic recovery in the country.
“DAFZA is currently home to more than 1,800 companies. In 2020, the free zone recorded a growth of 64.11% in the number of new registered companies.”
The group of electronics, electrical & ICT accounted for the largest number of the total number of companies registered in DAFZA, with a rate of 28.4%, 20% of which were multinational companies (MNCs).
This sector was the main contributor to DAFZA’s trade during the first nine months of the year, with a rate of 75.8% for exports and re-exports and a rate of 74.1% for imports. The group witnessed strong growth during the first nine months of the year by 13% in terms of imports and 2.5% in terms of total trade compared to the same period in 2019.
The group of logistics and freight companies accounted for 11%, 23.71% of which were multinational companies (MNCs). Followed by consumer products companies that accounted for 7%, 34.42% of which were MNCs. Consultancy and Business development companies accounted for 7%, and multinational companies constituted 21.31%. The companies specialized in aerospace, aviation & related services accounted for 6.3 % of the total number of companies, 33% of which were MNCs.
Group of pearls, semi/precious stones and metals came second with 17.1% for exports and re-exports and 18.7% for imports. group of electronics, electrical & ICT along with this group constitute 93% of the total trade of DAFZA.
As for the nationality of companies, the Middle Eastern companies accounted for the largest percentage of the total number of companies in DAFZA by 54%, followed by European companies by 21.5%, and Asian companies by 15%.
China ranked first in terms of major trading partners during the first nine months of the year with a percentage of 25% and a value of Dhs22 billion. China strengthened that position with DAFZA by growing its trade with a stimulus of 18% during the same period, and Iraq came second with 10% with an estimated value of Dhs9 billion, followed by India with 8% and a value of Dhs7 billion.
In terms of imports, China ranked first with a rate of 57%, followed by India with 18% and the United States of America by 8%, while Iraq ranked first in terms of exports and re-exports by 18.2%, and the UAE’s exports by 11.9%, followed by Switzerland with 10%.
Dr. Mohammed Al Zarooni, Director General of DAFZA, said: “The many challenges posed by COVID-19 in 2020 brought to light the strength and value of DAFZA’s foundations.
“This year, we will also continue to enhance the incentives to attract new companies, especially small and medium-sized companies, which see DAFZA as the right environment for growth. They will be able to establish their companies by leveraging the flexibility, strategic location, and other advantages that DAFZA provides. There is also a big focus on a number of sectors that are witnessing a strong momentum during the current period such as technology, logistics, medical equipment and pharmaceuticals.”
Considering the increasing demand and the acceleration of foreign companies to establish their businesses in DAFZA, the free zone witnessed an increase in the office-leased areas by 39.4 %.
As part of its efforts to meet this demand by companies for new lease areas, DAFZA completed the construction of the “9W” building with a total built up area of 64,285 sqm within its strategic location near the Dubai International Airport runway. This project provided a new leasable area of 23,510 sqm. 29% of which are leased of which 60% was leased to multinational companies.
The year will witness the launch of a set of economic initiatives and incentives within DAFZA’s plan to accelerate the economic recovery from the pandemic, which will include more than 22 strategic initiatives that will be implemented during the next two years.
The initiatives cover various dimensions including the commercial and promotional dimension, services, customer experience and the diversification of investments. These initiatives aim to provide value and a high investment return at the economic and institutional level, which will have a big impact on strengthening DAFZA’s position as a vital and growing economic contributor in the emirate of Dubai.
DAFZA has accomplished several distinguished achievements in the field of sustainability during 2020 such as: Reducing carbon dioxide emissions by 4.9% from 19,700 tonnes to 18,600 tonnes, reducing power consumption by 4.9 % from 38 million kWh to 36 million kWh, reducing power consumption in built-up area by 8.7% from 95 kWh per sqm to 82 kWh per sqm, reducing water consumption by 14% and chiller plant optimisation from 1 kW/tonne to 0.7 kW/tonne.
In 2020, DAFZA implemented more than 25 initiatives that fall in line with its national social responsibility efforts, including cooperation with the Faraj Fund to help 620 students from among the inmates of correctional and penal institutions.
It also includes a fundraising campaign in cooperation with the High Commissioner for Refugees, and other initiatives such as eye check-ups for clients, blood donation campaigns and disease awareness.