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Dubai Airport Freezone Authority (DAFZA) has announced strong business results for the first half of 2018, showing an 11% growth in the EBID in comparison with the same period of 2017 and a growth of new rental revenues by 27%. The results include a 10% increase in licensing revenues and a 31% increase in revenues from government services, resulting in a total revenue growth of 8% in comparison to 2017 H1.
The positive figures have been delivered as a result of DAFZA’s strategic plan set in early 2017, which comes in line with the ambitious objectives of the Dubai Plan 2021. One of the key elements of the plan is to support Dubai in becoming one of the most innovative and progressive cities that hosts world-class free zones across the globe.
The success witnessed by DAFZA came with a steady increase in leasable area reaching 43% compared to 2017, with a 63% growth in warehouses and 29% increase in office space. This is a result of DAFZA’s wide range of services and facilities along with its strategic location, linking it to local, regional and global markets. As for DAFZA Industrial Park, the first expansion project outside DAFZA’s boundaries located in Al Qusais Industrial Area, it witnessed an occupancy rate of 82% during the first half of this year.
DAFZA achieved a solid 15% growth in the number of registered companies over the same period in 2017, providing the ideal environment for attracting more foreign investors, long-term investment, business activity and development as well as world-class infrastructure, services and logistics facilities.
A 5% increase was also seen in the number of multinational companies at DAFZA, which is a direct result of the high-quality services provided by DAFZA that enable businesses to expand in the Middle East, Africa and Central Asia markets and explore the high investment opportunities in the region.
In the same context, the first half of 2018 also witnessed an increase in the number of registered SMEs by 17%. This confirms the success of DAFZA’s focus on providing integrated solutions and services that ensure business growth for such segment. There has been a particular focus on helping SMEs increase their collaboration with several governmental and private entities, in line with the vision of the UAE and Dubai governments to further develop this sector and contribute to the growth of the national economy.
In 2018 H1, DAFZA continued to attract foreign direct investment which helped boost its regional competitiveness and revive various key sectors. DAFZA recently announced a 65% reduction in business start-up fees, in line with Dubai's efforts to become an ideal destination for investment and prosperity and to consolidate the stability of free zone companies’ operations in order to sustain investments and support their growth.
Success of the economic development strategy
HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Airport Freezone Authority, said: “DAFZA’s remarkable performance results for 2018 H1 showcase the expected success of the plans developed by DAFZA to promote sustainable economic development in the Emirate. It is also the result of the initiatives and investment incentives launched by the Government of Dubai which have been guided by the wise leadership in order to attract foreign direct investment from international companies.”
HH Sheikh Ahmed pointed out that these achievements demonstrate DAFZA’s commitment to providing a world-class business model that enables DAFZA to assume a leading position among the most progressive free zones in the world. The results also support the business diversification strategy in the UAE.
Flexible business environment
HE Dr. Mohammed Al Zarooni, Director General of DAFZA, highlighted that these results underscore the flexible business and investment environment provided by DAFZA to its various segments of global investors.
Al Zarooni pointed out that DAFZA’s team has a great responsibility to continue the journey of progress and build on the success during the next phase. This falls in line with government plans and economic targets set by the country’s leadership for the coming years.
Al Zarooni praised DAFZA’s strategy that integrates world-class infrastructure with the strategic location of Dubai to provide the highest level of services and meet the needs of customers. DAFZA always keep pace with international market requirements, economic policies and developments across various global business sectors.
Attracting international companies
As part of its leading role in the Middle East and Africa, DAFZA remains committed to attracting international companies seeking to expand their business in the region. Many leading international companies have established their regional headquarters in the free zone, such as the Irish Aerogen specialized in healthcare and medical devices; the Japanese ASAHI YUKIZAI, a leading company in industrial resins and plastic valves, VA Tech WABAG Limited MEA SoncieWall MEA FZCO, etc. This asserts the quality investment facilities and services that contribute to the success of any company at regional and global levels.
Local and international participation
Aimed at strengthening cooperation, DAFZA held a series of meetings and initiatives aimed at expanding trade and attracting more investment opportunities. DAFZA organized a series of investment seminars entitled Gateway to Growth in India, China, Spain, Germany, Switzerland and Korea. These roadshows introduced the opportunities, investment advantages, advanced facilities and global infrastructure that DAFZA provides.
During the first half of this year, DAFZA sponsored a number of events and exhibitions, including the Arab Health Exhibition and Congress, Gulfood 2018, Automechanika trade fair, the International Logistics and Material Handling Exhibition (SIL) in Barcelona, Spain. DAFZA participated in the 20th International Exhibition and Conference on Transportation and Logistics set up by the Spanish government.
Moreover, DAFZA participated in the World Association of Investment Promotion Agencies (WAIPA) hosted by the Dubai Investment Development Agency (Dubai FDI), an agency of the Dubai Department of Economic Development (DED), which highlighted the best practices in attracting FDI as a key factor in sustainable development.
Additionally, DAFZA sponsored the World Free Zones Organization’s (World FZO) 4th Annual International Conference and Exhibition (AICE), which was attended by leading policy makers, experts, business leaders and academics. In addition, the Freezone hosted the Leaders of the Future program organized by the World Free Zones Organization that witnessed the attendance of a number of the sector’s specialists.
DAFZA also hosted an introductory seminar on applying VAT for free zone in collaboration with Morison MJS Tax Consultancy. Furthermore, DAFZA participated in the ‘2018 Government Talk’ organized by the Dubai the Model Centre of the General-Secretariat of the Executive Council of Dubai. The event showcased the services and initiatives that the Free Zone aims to improve. Through a specialized team, DAFZA is also participating in the City Builders Race initiative launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, which aims to achieve 100% improvement in government services by Expo 2020 Dubai.
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