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Dubai Airport Freezone Authority (DAFZA) has announced its key 2017 achievements, namely its 7% contribution to Dubai's non-oil trade representing 18% of total free zones trade within Dubai according to 2016 official statistics. The freezone’s success is largely due to its strategic role in driving continuous economic development and high operational efficiency, as well as the creation of attractive investment opportunities and the adoption of a clear investment approach aimed at contributing effectively to the overall output of Dubai.
According to the official results, DAFZA has increased its leasable area by 6% compared to the same period of the previous year. This was due to the increasing demand of the freezone’s business solutions and itsproduct line up which were adapted to the requirements of the global markets to expand their businesses in the Middle East, Africa and Central Asia and explore their investment opportunities in Dubai.
DAFZA achieved a 25% growth in its registered companies compared to the same period last year. This reflects the success of its strategic initiatives which focused on increasing foreign direct investment flows to the freezone and providing an exceptional and seamless experience for regional and international companies. The New tenant’s revenue contributed 8% of the total rental revenue for 2017, which was the result of highly relevant offers and packages provided by DAFZA.
There was a 34% increase in the registered companies within the office package segment offered by DAFZA compared to same period last year. This was launched by DAFZA following a comprehensive study and research that identified the needs of customers in order to ensure the strategic growth plans of the freezone.
Financial results showed an increase in total assets by 2% and an increase in licensing revenues by 16%. DAFZA’s services, which include licenses, government services and other value-added services to customers, accounted for 18% of 2017 total revenues.
2017 witnessed a 13% growth in the number of registered multinational companies (MNCs). With this increase, MNCs now make up 36% of the total number of companies in the Freezone. This reflects the growing confidence of foreign investors and major international companies in DAFZA as one of the most important freezones in the UAE and the world. The freezone has become the leading destination for investment activities in Dubai as many international brands have selected DAFZA as their of choice for their regional operations over the past two decades.
As part of DAFZA’s commitment to supporting the growth of small and medium enterprises (SMEs), 2017 witnessed a 27% increase in the number of registered SMEs compared to the same period the year before. This confirms the success of DAFZA’s efforts to provide integrated solutions and services to ensure that such companies achieve growth and increase their productivity. This was achieved through specialized programs and qualitative initiatives in cooperation with government and private entities. This comes in line with the vision of the UAE and Dubai to develop the freezone sector and to contribute to the growth of the national economy.
In 2017, DAFZA officially launched its first industrial expansion project outside its current location. DAFZA Industrial Park is located in Al Qusais Industrial Area and features modern industrial units supported by unique customs experience. DAFZA cooperated with Dubai Customs to make this industrial park the first zone with smart security and customs services. These services are delivered in an innovative and integrated center that automates processes, without the need for human intervention.
Both DAFZA and DAFZA Industrial Park were among the 20 freezones selected by the Cabinet Decision No. (59) of 2017, to be considered as a designated zone. Now, goods may be transferred among these areas tax-free, which has increased its attractiveness to new companies and foreign investors.
Commitment to long term success
Commenting on the achievements, His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAFZA, said: “The achievements of DAFZA in 2017 underscore its outstanding position as one of the most advanced and progressive freezones in the world. The results highlight DAFZA’s role in supporting the UAE’s economic diversification strategy and enhancing the investment and trade movement in Dubai and the nation as a whole. This strategy falls in line with the Dubai 2021 Plan and the Government's plans to move into the post-oil phase, backed by the support of commercial diversification policies led by the vision of the UAE’s wise leadership.”
His Highness Sheikh Ahmed recognized these achievements as a testament to DAFZA's success in its operational approach and its high level of quality in management over the past decades. His Highness praised its ideal environment for attracting more foreign investors as well as the world-class infrastructure, service and logistics facilities DAFZA provides. He also highlighted its strategic location next to one of the largest international airports, which provides easy access to various local, regional and global markets.
Dr. Mohammed Al Zarooni, Director General of DAFZA, said: "The achievements of last year join a two-decade journey of success that have made the freezone one of the best in the region and in the world. This is due to the pursuit of all our employees and stakeholders in providing the highest levels of services to meet our customers’ requirements across international markets, economic policies and developments affecting the global economy.”
Al Zarooni stressed DAFZA’s commitment to strengthening the growth of the national economy, explaining how this is being achieved through attracting more international investors and foreign capital by providing a wide range of investment opportunities and smart solutions. DAFZA provides a role model for freezones that aim to support the growth of their national economy.
Al Zarooni also pointed out that the strategic plan "2017-2021" launched last year paved the way towards fulfilling this commitment. This plan helps the UAE to maintain a leading position in all fields, especially focusing on developing and strengthening economy and trade.
Dubai CommerCity foresees the future of global trade
In the third quarter of 2017, His Highness Sheikh Ahmed bin Saeed Al Maktoum, announced the launch of Dubai CommerCity, a AED 2.7-billion, 2.1 million square feet joint venture between DAFZA and the Wasl Asset Management Group, to capitalize on the growing ecommerce sector and the future of global trade. The project is strategically important for its ambitious vision that consolidates Dubai's presence as a leading platform for international e-commerce and lays out the foundation to support economic diversification and smart transformation strategies. Located in the Umm Ramool area, Dubai CommerCity spans a total area of 427,000 square meters inclusive of office spaces and logistics units covering 207,000 square meters; a total leasable area of 176,000 square meters. The project is serviced by 4,000 parking spaces stretching over 220 thousand square meters.
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