Dubai Airport Freezone Authority (DAFZA) contributes 12 percent to the country’s foreign trade in 2019
Dubai Airport Freezone Authority (DAFZA) contributes 12 percent to the country’s foreign trade in 2019
Dubai Airport Freezone Authority (DAFZA) contributed 12% to the Emirate’s foreign trade in 2019, compared to 11.2% in 2018, out of a total trade value of AED 1.37 trillion recorded last year. DAFZA’s foreign trade crossed AED 164 billion in 2019 with a 12.6% growth, compared to the previous year (AED 146 billion).
The underlying reason for this hike is the recent business facilitation services and incentives that attracted foreign investors to the free zone. As a result, there was more than 15.8% growth in imports worth AED 72.4 billion. The total exports and re-exports reflected 10.2% growth with AED 91.8 billion allowing DAFZA to achieve an AED 19.4 billion trade surplus in 2019.
India was DAFZA’s biggest trade partner in 2019 with 18.3 percent valued at AED 30 billion, followed by China with 17.3 percent at AED 28.4 billion. Switzerland got the third position with 16.3 percent at AED 26.8 billion. India ranked first for imports with 40.7 percent at AED 29.4 billion, followed by China with 39.2 percent at AED 28.4 billion. Switzerland also ranked first in exports and re-exports and accounted for 27.4 percent at AED 25.1 billion, followed by Iraq with 12.3 percent valued at AED 11.3 billion.
When it comes to goods, machinery, electrical and electronics equipment ranked first with 55% of the total foreign trade in 2019, with a value of AED 37.4 billion for imports and AED 53 billion for exports and re-exports. This was a hike of 14.3% or AED 11.3 billion in DAFZA’s total trade.
The precious stones and metals accounted for 38% of the total import value at AED 29.6 billion and AED 32 billion in terms of exports and re-exports. This meant an increase of 10.4% worth AED 5.8 billion. Both sectors represent 92.6% of DAFZA’s total trade.
Apart from these DAFZA also generated increased revenue from multinational companies (36.6% growth compared to the previous year. The total space occupied by multinational companies also increased by more than 135%.
His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAFZA quoted that DAFZA’s foreign trade was valued at more than 164 billion AED. This was a result of DAFZA’s contribution as a major hub for international companies and investors across the globe. The results show its major role in accelerating access to global and regional markets, including Dubai’s market. He added that this is positively reflected in Dubai’s economy as DAFZA has been actively contributing to its sustainable growth for the last twenty years.
If you wish to set up your business in DAFZA or have any questions regarding the same, contact us at +971 55 843 2911 or info@corpinconsultants.com to book a free consultation.
