Dubai Airport Freezone Authority (Dafza) has achieved trade amounting to AED87.4 billion ($23.8 billion) during the first nine months of 2020, marking a 10% contribution to Dubai’s trade and a trade surplus amounting to AED10.6 billion.

Dafza, which is celebrating its Silver Jubilee year, highlighted an increase of 7.62 percent in sales revenues, and 64.11 percent increase in the number of registered companies during the period, reported state news agency Wam.

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.

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,” he said.

Sheikh Ahmed said: "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 percent in the number of new registered companies," he 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 percent, 20 percent 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 percent for exports and re-exports and a rate of 74.1 percent for imports. The group witnessed strong growth during the first nine months of the year by 13 percent in terms of imports and 2.5 percent in terms of total trade compared to the same period in 2019.

The group of logistics and freight companies accounted for 11 percent, 23.71 percent of which were multinational companies (MNCs). Followed by consumer products companies that accounted for 7 percent, 34.42 percent of which were MNCs. Consultancy and Business development companies accounted for 7 percent, and multinational companies constituted 21.31 percent. The companies specialized in aerospace, aviation & related services accounted for 6.3 percent of the total number of companies, 33 percent 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 percent, followed by European companies by 21.5%, and Asian companies by 15 percent.

China ranked first in terms of major trading partners during the first nine months of the year with a percentage of 25 percent and a value of AED22 billion. China strengthened that position with Dafza by growing its trade with a stimulus of 18 percent during the same period, and Iraq came second with 10 percent with an estimated value of AED9 billion, followed by India with 8 percent and a value of AED7 billion. In terms of imports, China ranked first with a rate of 57 percent, followed by India with 18 percent and the US by 8 percent, while Iraq ranked first in terms of exports and re-exports by 18.2 percent and the UAE's exports by 11.9 percent, followed by Switzerland with 10 percent.

Dr. Mohammed Al Zarooni, Director General of Dafza, said: "In 2021, Dafza is committed to the government directions aimed at easing the challenges of the pandemic on the economic sectors and supporting companies towards economic recovery.

“That will be achieved with the return of economic activities and the opening of more global markets. This year, we will also continue to enhance the incentives to attract new companies, especially small and medium-sized companies, which see Dafza as the right environment for growth. They will be able to establish their companies by leveraging the flexibility, strategic location and other advantages that Dafza provides. There is also a big focus on a number of sectors that are witnessing a strong momentum during the current period such as technology, logistics, medical equipment and pharmaceuticals.”

The year 2021 will witness the launch of a set of economic initiatives and incentives within Dafza’s plan to accelerate the economic recovery from the pandemic, which will include more than 22 strategic initiatives that will be implemented during the next two years. The initiatives cover various dimensions including the commercial and promotional dimension, services, customer experience and the diversification of investments.