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Dubai’s DAFZA achieves 16% net profit growth in 2016 |
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The Dubai Airport Freezone Authority (DAFZA) performed strongly in 2016, achieving 16 per cent net profit growth and posting a 2 per cent growth in its total revenue and a 28 per cent increase in its total assets and a 3% rise in EBID. According to official reports, the total leasable area of multinational companies occupying the Freezone rose by 44 per cent, while total leased office space increased by 13 per cent. The leased light industrial units grew as well by 25 per cent, due mainly to growing confidence among international companies in DAFZA’s capabilities as well as the numerous business and investment opportunities available in Dubai. DAFZA accounted for AED 109.82 billion of Dubai's non-oil foreign trade for 2015, representing 9 per cent of the emirate’s total trade and 20 per cent of total free zones trade for the same period. H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAFZA, said: “DAFZA continues to move forward in terms of leadership and excellence, driven by its strong operational performance and positive financial results which have proven once again that it is one of the world’s top free zones. The uninterrupted success of the Freezone affirms its exceptional ability to address challenges and maximize opportunities for supporting nationwide efforts to usher in a post-oil economy and turning Dubai into a major pillar of the global economy. We are inspired by the vision of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, who taught us not be afraid of difficulties as we strive to become a world leader.” H.H. added: “DAFZA proved its instrumental role in enhancing the overall performance of Dubai’s free zones last year. It demonstrated the highest levels of competitiveness, excellence and efficiency in overcoming a challenging global economic climate. Supported by an integrated portfolio of effective economic and investment solutions, DAFZA drew in significant foreign direct foreign investments from vital sectors. The Freezone played an economic and strategic role in promoting the attractiveness of the local investment environment, which has further strengthened Dubai’s position as the top of global investment destinations. We are confident of even more promising prospects as we prepare to launch our Strategic Plan for 2017-2021 which will implement ambitious initiatives in line with the strategies and directives of the wise leadership of the UAE.” For his part, H.E. Dr. Mohammed Al Zarooni, Director General, Dubai Airport Freezone Authority, said: “DAFZA’s strong performance in 2016 was not surprising and adds to already numerous achievements that have propelled DAFZA among the ranks of the most innovative and competitive free zones in the world. Our series of successes affirms our outstanding competitiveness and our ability to overcome emerging challenges within the regional and international markets. We have further strengthened the UAE economy and helped increase Dubai’s GDP by capitalizing on investment prospects to build a strong, competitive and diversified economy which can achieve more prosperity in the future.” H.E. Dr. Al Zarooni concluded: “We are committed to providing an ideal business environment for attracting international companies and foreign capital as well as supporting economic diversification and promoting trade openness with the global markets. We shall achieve this by focusing on providing world-class infrastructure, unique investment incentives and innovative solutions in line with our vision of a ‘Freezone that goes beyond’ that supports the national and global economic systems. Our positive performance in 2016 drives us to further enhance the experiences of regional and international investors in Dubai and in DAFZA in particular in all vital sectors, taking advantage of our pivotal role in advancing economic diversification strategies and achieving the goal of Dubai Plan 2021 to make the emirate one of the most important business centers in the world.” Continuous growth ... The major accomplishments of 2016 DAFZA registered an impressive growth in the number of its hosted multinational companies, which currently account for 32 per cent of all companies operating within the Freezone. The Information Technology, Electronics and Electrical and Telecommunications sectors accounted for the largest share at 27 percent of the total number of companies that operated within the Freezone last year. The Consumer Products sector placed second at 10 per cent, followed by the Engineering and Building Materials and Aerospace, Aviation and Related Services sectors which shared third place at 9 per cent, and then the Food and Beverage and Logistics and Freight sectors which shared fourth place at 8 per cent. DAFZA has witnessed unprecedented growth in Foreign Direct Investments (FDI) from major global markets, especially those from the UK, USA, Germany, India, France, Japan, Switzerland, Italy and Singapore—affirming its leadership and serving as an effective addition to the national economy. The growth is also attributed to DAFZA’s continuing commitment towards utilizing an innovative approach in the provision of smart solutions that can attract international investors looking to establish a strong presence in the markets of the Middle East, North Africa and South Asian (MENASA) regions. DAFZA's percentage of companies from the Gulf region and the Middle East was the highest in 2016, with 40 per cent. The share of American and European companies in DAFZA was pegged at 35 per cent, followed by Asian companies at 18 per cent, while the share of companies coming from other countries in the world were posted at 7 per cent. Economic diversification and attracting investments are top priority DAFZA continues to stand out as a key player in the move to support the country's economic diversification policies, which is made even stronger because of its being a multi-sectoral Freezone covering more than 20 vital economic sectors. Along these lines, DAFZA has adopted and implemented an integrated strategy aimed at increasing the flow of FDI, which are based on new standards and guidelines covering the development of a system of policies and the inclusion of innovative products and services. The strategy will allow regional and international investors to realize their visions to create a strong presence across key growth markets in the MENASA regions. DAFZA has also taken key steps in further encouraging major international and multinational companies to take part in the efforts to enhance the economic diversification efforts via the creation of a series of procedures directed at promoting the flexibility of licensing options, which includes the extension of trade licenses for a period of three years. DAFZA's launch of the 'Smart Office' initiative in 2016 has reaped in positive results and has contributed highly in the move to attract FDI. 'Smart Office ' serves as an interactive platform for international companies to explore the local and regional market and to study available investment opportunities driven in by Dubai's leading position in the global economy. The initiative also complements the country's ongoing preparations for Dubai Expo 2020 and the achievement of the Dubai Innovation Strategy and the Dubai: Global Capital of the Islamic Economy program. |
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