Registered companies in Dafza up 31% in Q1 2017

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Registered companies in Dafza up 31% in Q1 2017
During Q1, Dafza completed a tour with stops in South Korea, India, Germany and Italy.

dubai - There was a 35 per cent growth in leased office space in the freezone

By Staff Report

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Published: Sat 27 May 2017, 5:45 PM

Last updated: Sat 27 May 2017, 7:48 PM

The Dubai Airport Freezone Authority (Dafza) achieved 62 per cent of its annual sales target in Q1, 2017. This was accompanied by an increase of seven per cent in sales revenues over Q1 2016. The freezone also posted a 31 per cent growth in the number of registered companies, as compared to the same period in 2016, noting a 16 per cent rise in the number of multinational businesses.

The growth of leased office space reached 35 per cent with leased light industrial units jumping by 36 per compared to the same period last year. Dafza's performance can also be attributed to its plan to attract more foreign direct investment, which included a promotional plan targeting leading markets and vital economic sectors in the Mena region.

During Q1, Dafza completed a tour including stops in South Korea, India, Germany and Italy. Dafza created new partnerships through meetings with major foreign investors interested in establishing their businesses in the freezone. The tour also featured the launch of the 'Smart Office,' a product designed specifically for developing markets. It enables multinational companies to explore opportunities for growth in the region through flexible solutions offered by Dafza. The Smart Office has already achieved a 21 per cent occupancy rate.

Dr Mohammed Al Zarooni, director-general of Dafza, said: "The excellent results from Q1 2017 reflects our positive outlook for 2017. The growth that we are witnessing is attributed to our business model, efficient operational management and flexible yet efficient requirements for investments. Our financial results reflect Dafza's commitment towards its efficient role in driving the national economy. We expect this growth to continue as a result of our strong operational and financial performances."

Vital sectors
The information and communications technology and electronics industry accounted for 32 per cent of registered companies in Dafza in Q1 2017, followed by the investment and business development sector with nine per cent; cargo, logistics and consumer goods with eight per cent; and food and beverages, aerospace and aviation, and machinery all coming in with six per cent. Engineering and building materials accounted for five per cent, followed by financial, insurance, medical equipment and pharmaceuticals at four per cent each. Other sectors collectively accounted for eight per cent of the total number of registered companies.

Through its Strategic Plan 2017-2021 launched in Q1 2017, Dafza aims to become a key contributor to Dubai's economic diversification and development, as well as attract more foreign investors and multinational companies.

Dafza's diversification strategy will establish new sectors and attract leading companies specialising in Islamic economy. Dafza expects to see the completion of the Dafza Industrial Park in 2017. The park will be the first expansion project outside the freezone's geographical scope. Early sales procedures have already begun and investors can now start the internal design process for various units.

Dafza Industrial Park aims to maintain the freezone's carbon footprint at the lowest levels by employing the latest sustainability technologies. This has resulted in the reduction of power consumption by 16.9 per cent, compared to the same period last year. Water consumption decreased by 24.3 per cent as well.

- business@khaleejtimes.com


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