DAFZ posts 55pc rise in new investments
Dubai, April 14, 2010
Dubai Airport Freezone (DAFZ) has registered a robust growth of 55 per cent in new investments in the first quarter of this year, compared to the same period in 2009.
“This strong 55 per cent growth in investments is a natural result of the increase in the number of new companies registered in the first quarter. In addition, existing companies at the Freezone expanded by 38 per cent in their premises space,” stated Sheikh Ahmed bin Saeed Al Maktoum, chairman of DAFZ.
Sheikh Ahmed added that expansions were led by 16 European and American companies who have stepped up their activities in the region in search of new markets. “The expansion of operations required an increase in office space and warehousing facilities to accommodate equipment and staff.
“The freezone's contribution to Dubai's GDP was 2.2 per cent last year and is expected to grow with the increase in number of companies and additional investments by major international companies seeking a foothold in the Middle East, central Asia and Africa.”
“We have achieved what we sought in the past 14 years attracting the biggest foreign investments in different fields and sectors. Over 1450 international companies currently work from the freezone.”
Sheikh Ahmed added, the business investment sector represented 62 per cent of total activities of the freezone, followed by the services sector which accounted for 36 per cent, followed by the industrial sector. The industrial and aviation services, electronics and electrical appliances sectors were the top sectors in terms of number of companies and rates ranged from 10 to 12 per cent. Building materials, cargo and freight came second with 10 per cent. The pharmaceutical and jewellery sector make up 8 per cent of the companies operating in the freezone.
European and American companies represent the largest number of companies in the freezone with 42 per cent share counts for 609 companies in various sectors. The Gulf and Middle East companies came second with 32 per cent share. The Japanese companies also registered a larger presence in the first quarter of 2010 to continue what they started in 2009.
Speaking on future expansion plans, Shaikh Ahmed said: “We are implementing the expansion plans as scheduled taking into consideration the current economic circumstances and the indicators of demand by foreign investors.”
The ongoing new buildings with an area of up to 32,000 sqm are expected to complete by 2012, he said.-TradeArabia News Service