11% year-on-year boost witnessed
Dubai Airport Freezone Authority (DAFZA) has announced strong business results for the first half of 2018, showing an 11% growth in the EBID in comparison with the same period of 2017 and a growth of new rental revenues by 27%.
The results included a 10% increase in licensing revenues and a 31% increase in revenues from government services, resulting in a total revenue growth of 8% in comparison to 2017 H1.
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.
The success witnessed by DAFZA came with a steady increase in leasable area reaching 43% compared to 2017, with a 63% growth in warehouses and 29% 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% during the first half of this year.
DAFZA achieved a solid 15% 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% 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%.
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 2018 H1, DAFZA continued to attract foreign direct investment which helped boost its regional competitiveness and revive various key sectors.
DAFZA has recently announced a 65% 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.