The value reflects a 12.6% growth in the total value of the foreign trade of the Emirate
Dubai Airport Freezone Authority (DAFZA) played a key role in boosting Dubai’s economic growth, with a 12% contribution to the Emirate’s foreign trade in 2019, compared to 11.2% in 2018, out of a total trade value of AED 1.37trillion (US$ 377bn) recorded last year.
This came as a direct result of the incentives and business facilitation services provided by DAFZA that have enhanced the attractiveness of the free zone to foreign investors.
DAFZA’s foreign trade exceeded AED164bn in 2019, compared to AED146bn (US$ 44.65bn) in 2018, with a 12.6% growth.
In terms of goods, machinery and electrical and electronics equipment ranked first with 55% of the total foreign trade in 2019, with a value of AED 37.4bn (US$ 10.18bn) for imports and AED 53bn (US$ 14.43bn) for exports and re-exports. This was an increase of 14.3% or AED 11.3bn (US$ 3.08bn) in DAFZA’s total trade.
This was followed by precious stones and metals with 38% of the total import value at AED 29.6bn (US$ 8.06bn) and AED 32bn (US$ 8.71bn) in terms of exports and re-exports.
DAFZA witnessed an impressive growth in operations of its hosted multinational companies, cementing its position as an attractive destination for companies, looking to benefit from DAFZA’s portfolio comprising a mix of services, incentives and business facilities.
In 2019, DAFZA’s total revenues of multinational companies increased by 36.6% compared to the same period in 2018. The total space occupied by multinational companies increased by more than 135%.
Global connectivity
HH Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, DAFZA, highlighted that DAFZA’s foreign trade boost was a result of DAFZA’s leading position as a hub for international companies and investors, connecting key commercial hubs worldwide.
“DAFZA succeeded due to its well-designed plans that ensure ease of business and better-controlled operations that match the requirements of various business sectors,” asserted Dr. Mohammed Al Zarooni, Director General, DAFZA.
Expansion for international companies
In 2019, a number of international companies opened their regional headquarters in DAFZA or expanded their facilities to serve customers across the region. This includes Airbus expanding its business with the opening of its first Africa and Middle East Cabin Electronics Service Centre.
TNA, a leading global supplier of integrated food processing and packaging solutions, has opened its new regional headquarters in DAFZA. The new facility will allow TNA MENA to offer a range of after-market services to customers in the region, including enhanced technical support, a new training and demo centre and easier access to spare parts.
Michelin, the world major in tyre design, manufacturing and distribution, has also opened its regional headquarters in the free zone to manage its operations in Africa, India and the Middle East.
DAFZA expansion
As part of its expansion plans to provide additional leasing space and facilities to the increasing number of companies, DAFZA developed a new building compound which is due to open in the first half of the year.
The new buildings will have a leasing space of 21,580 square meters, of which DAFZA leased almost half of before the expected opening. DAFZA is currently working on developing a new multi-story car park, which is expected to open next year.
International delegations
In 2019, DAFZA received several international delegations looking to know more about the unique investment environment it offers.
DAFZA recently received an official delegation from the Bank of China to discuss prospects of future collaboration. The Chinese delegation was briefed on key, DAFZA-led strategic projects and initiatives, and the free zone’s experience over the last two decades in attracting, increasing, and sustaining foreign direct investment.
DAFZA also welcomed a delegation from the Enterprise Europe Network (EEN) as part of the networks’ mission. The delegation comprised of representatives from 32 European companies on a multi-sector mission with a focus on EXPO 2020 Dubai. The delegation was briefed on market information from the UAE and the region, best ways to start a business and the incentives offered by DAFZA in this regard.
DAFZA also organized a promotional campaign in Korea in cooperation with the Korea Trade and Investment Promotion Agency, the Korean International Trade Association and the UAE embassy in South Korea.
Supporting the ‘halal’ sector
As DAFZA supports the halal sector on local, regional and international levels, the free zone continued its efforts to provide companies with world class services that support its business development and access to the regional markets. These services are provided by the Halal Trade and Marketing Center, which was launched as a joint initiative between DAFZA and the Dubai Islamic Economy Development Centre (DIEDC).
Sustainability as a business approach
DAFZA achieved a number of important sustainability milestones in 2019, including reducing electricity consumption by 2.7% and reducing water consumption by 5.4%. DAFZA also reduced carbon emissions by 25.5%, waste by 7.3%, and increased recycling by 1.7%. The results emphasize the success of DAFZA’s sustainability approach and its pursuit of the highest international standards in energy management.
DAFZA Performance Infographic
