Friday 27 November 2020

Dafza achieves 8pc growth in revenues

DUBAI, August 28, 2018

Dubai Airport Freezone Authority (Dafza) has announced strong business results for the first half of 2018, showing an 11 per cent growth in the EBID in comparison with the same period of 2017, and a growth of new rental revenues by 27 per cent.

The results include a 10 per cent increase in licensing revenues and a 31 per cent increase in revenues from government services, resulting in a total revenue growth of 8 per cent in comparison to 2017 H1, said a statement from the authority.
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, it said.

The success witnessed by Dafza came with a steady increase in leasable area reaching 43 per cent compared to 2017, with a 63 per cent growth in warehouses and 29 per cent 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 per cent during the first half of this year.

Dafza achieved a solid 15 per cent 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 per cent 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 per cent. 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 the first half of this year, Dafza continued to attract foreign direct investment which helped boost its regional competitiveness and revive various key sectors. Dafza recently announced a 65 per cent 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.

Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dafza, said: “Our 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,” he said.

Sheikh Ahmed pointed out that these achievements demonstrate Dafza’s commitment to providing a world-class business model that enables the authority 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.

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.

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 specialised 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.

Aimed at strengthening cooperation, Dafza also held a series of meetings and initiatives aimed at expanding trade and attracting more investment opportunities. It organised 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, it stated. – TradeArabia News Service

Tags: | growth | Revenues | DAFZA |

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