Dubai Airport Freezone achieves 48% growth in net profits in 1stQ 2009 as revenue surged 49%

Dubai Airport Freezone bucked the trend of a worldwide economic downturn when it reported a 48 per cent increase in net profit and 49 per cent increase in revenue in the first quarter of this year compared to the same period last year.

Dr. Mohammed Al Zarooni, Director General of the Dubai Airport Freezone "The Dubai Airport Freezone has also attracted a big number of major Japanese companies". The Japanese sector at the Freezone enjoyed a 130% increase in one year. He expected the positive growth rate experienced "To continue for the rest of the year".

Dr. Zarooni added that an extra 5,000 square metres of office space was leased during the period when 10 existing companies at the Freezone extended their offices."Occupancy rates of spaces allocated for industrial units at the Freezone had also reached 100%."

"We are working hard to consolidate the achievements and performance and try our best to further improve our bottom line," said Dr. Al Zarooni.

He attributed the positive development to ongoing search by European and US companies - which were hit hard by the financial crisis - for new markets and opportunities which the Gulf and Middle East regions represent.

He said there was a "The number of European companies operating in the Freezone setting up with their regional offices is more than 35 per cent of the total number of companies at the moment. While the American companies and others from the GCC represent 18 and 16 percent respectively.

Dr. Zarooni explained that, "Though it is true that the financial crisis affects overall global economic activity adversely, the Freezones can benefit from this situation and create positive opportunities by offering flexible incentives that meet the needs of these companies targeting regional markets, especially after experiencing low demand for their products and services in their own countries."

He noted that Dubai Airport Freezone spares no effort and applies a new, more flexible approach to preserve the achievements related to rates of growth, through offering a variety of services and facilities to investors. "For instance we offer one- full package for one time charges, without any additional costs or extra expenses"

Dr. Al Zarooni said that the increase revenues and net profits in the First Quarter of the current year and also the increase of interest from a number of multi-national companies increases the possibility of us achieving overall excellent results by the end of this year.

The companies that have recently started operations at the Dubai Airport Freezone are Heinz International, a US registered company, Kawasaki Heavy Industries Company of Japan, and LEWA, a manufacturer of industrial chemicals and others.

Dr. Al Zarooni said the strong performance achieved by Dubai Airport Freezone during the first quarter of this year "Is due in large measure to unlimited support from Dubai Government and its leaders whose role was seen by business experts as vital in curbing the effects of the financial crisis and to reduce its impact."

He called for doubling of efforts at various levels in terms of customer focus, and taking into account the circumstances and conditions in terms of their performance and their growth rates. In addition to a renewed focus on customer support at this crucial economic stage in order "to achieve the principle of strategic partnership."

"We are moving forward without hesitation in our expansion plans, which began last year. These plans are flexible on its implementation to take in consideration changes and developments around us," he stated.

Dr. Al Zarooni also said the Dubai Airport Freezone has a special role to play in promoting the national economy and supports the UAE's development by attracting major international companies and promoting investments into the country.

"With this achievement, it is clear that the Dubai Airport Freezone enjoys one of the fastest growing Freezones in the country and leads in attracting companies to the Middle East with its excellent infrastructure, services and facilities which is second to none."

He added that the growing number of European and American companies in the Freezone constantly encourages us "To intensify our efforts in these markets and try to attract more of them. Most of the European and U.S. companies are in the aviation industry, pharmaceuticals, cosmetics, luxury and other sectors."