Dafza trade amounts to Dhs87.4 billion in the first 9 months of 2020

Dubai Airport Freezone Authority (Dafza) is celebrating its Silver Jubilee year, highlighting its success as one of the leading free zones in the UAE, following outstanding financial and operational results last year. The free zone’s results affirm the effectiveness of its strategic initiatives and economic incentive packages that were launched to overcome the challenges caused by COVID-19. The results are a direct reflection of the return of the economic activities and positive performance in the emirate of Dubai.

During this period, confidence in the free zone’s capabilities remained strong due to Dafza’s ability to combat the economic slowdown while leading operations towards a full economic recovery. The free zone recorded an increase in the number of businesses that have commenced operations within Dafza or moved operations to the free zone, during a period of rapid changes in business and trade sectors.

Dafza achieved a series of remarkable financial results in the first 9 months of 2020 in comparison to the same period in 2019.

Dafza trade amounts to Dhs87.4 billion in the first 9 months of 2020. The firm registers a trade surplus amounting to Dhs10.6 billion.

The most notable results achieved by Dafza during the first 9 months of 2020 include an increase of 7.62 per cent in sales revenues and a 64.11 per cent increase in the number of registered companies.

Commenting on the 2020 results, Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Airport Freezone Authority (Dafza), expressed that 2020 was an extraordinary year that posed major challenges for various vital sectors. During the end of 2020, as a response to the crisis and the need to adapt to the new norm imposed by the social distancing measures, we are committed to the directives of our wise leadership to provide an impetus to a sustainable and inclusive economic recovery.

Sheikh Ahmed Bin Saeed Al Maktoum said: “We are proud of the exceptional approach the government of Dubai took under its wise leadership to provide all kinds of support, which reaffirms the emirate’s reputation in terms of challenging the impossible to adjust and revitalise commercial and economic movement. This comes in line with its role and position as a global economic and trade hub that attracts foreign investments and enhance its presence in the region. This support came in the form of a series of economic stimulus packages and financial incentives for those impacted by the pandemic to help them find the right path towards the economic recovery.

“The results achieved by Dafza and its business community during 2020, the investors’ confidence and other various indicators give a positive outlook on the short and long term for economic recovery in the country. This is also supported by the return of the economic sectors to high production levels after overcoming the challenges, which was reinforced by several government initiatives that aimed to accelerate economic recovery and enhance movement of supply chains and global trade.”

“Dafza is currently home to more than 1,800 companies. In 2020, the free zone recorded a growth of 64.11 per cent in the number of new registered companies,” Sheikh Ahmed added.

The group of electronics, electrical & ICT accounted for the largest number of the total number of companies registered in Dafza, with a rate of 28.4 per cent, 20 per cent of which were multinational companies (MNCs). This sector was the main contributor to Dafza’s trade during the first nine months of the year, with a rate of 75.8 per cent for exports and re-exports and a rate of 74.1 per cent for imports. The group witnessed strong growth during the first nine months of the year by 13 per cent in terms of imports and 2.5 per cent in terms of total trade compared to the same period in 2019.

The group of logistics and freight companies accounted for 11 per cent, 23.71 per cent of which were multinational companies (MNCs). Followed by consumer products companies that accounted for 7 per cent, 34.42 per cent of which were MNCs. Consultancy and Business development companies accounted for 7 per cent, and multinational companies constituted 21.31 per cent.

The companies specialised in aerospace, aviation & related services accounted for 6.3 per cent of the total number of companies, 33 per cent of which were MNCs.

As for the nationality of companies, the Middle Eastern companies accounted for the largest percentage of the total number of companies in Dafza by 54 per cent, followed by European companies by 21.5 per cent, and Asian companies by 15 per cent.

China ranked first in terms of major trading partners during the first nine months of the year with a percentage of 25 per cent and a value of Dhs22 billion.