20 July 2009

Dubai Airport Freezone achieved 47% increase in revenue in first half 2009

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His Highness Sheikh Ahmed bin Saeed Al Maktoum, President Dept. of Civil Aviation. Chairman of Emirates Group and Dubai Airport Freezone, has announced that the Freezone has registered positive growth in the second half of this year with a 47 per cent increase in revenue in the second half of 2009 compared to the same period of 2008.

"This achievement is a direct result of Dubai Government's balanced policies toward foreign investments and it's a strong sign of Dubai's strong economic stand," Sheikh Ahmed said.

Dr. Mohammed Al Zarooni, Director General of Dubai Airport Freezone, said the Freezone had registered a 47 per cent increase in revenue in the second half of 2009 compared to the same period of 2008.

"The high rate of return on investment achieved by the Dubai Airport Freezone was a result of the confidence in Dubai by foreign investors who came to tap the potential of the emerging Gulf and Middle East markets as an alternative to a slowdown in more mature markets."

Dr. Zarooni attributed the tremendous increase in revenue at the Freezone to the increase in number of companies that opened their offices at the Freezone, a strong support mechanism put in place by the administration which emphasizes customer service and support.

The Dubai Airport Freezone has consistently followed a strong growth curve in revenue increase despite the difficult economic climate.

Dr. Al Zarooni said the Freezone has achieved high growth rates in 2008 as occupancy for international companies increased by 58% leading to 84% increase in net profits and 59% in revenues compared to 2007.

Dubai Airport Freezone will invest Dh1.3 billion to almost double its capacity with six new buildings and a hotel.

The expansion comes at a time of significant growth and expectations of high demand from companies relocating to the Freezone in the coming years.

In the first quarter of this year, it saw a 48 per cent increase in revenues and a 49 per cent increase in net profits compared to the corresponding quarter in 2008.

"The growth is an indicator that we are doing good and foreign direct investment is not bad," said Dr. Al Zaroun. Last year, the Freezone recorded a total net profit of Dh175 million.

"Our strategy now is to focus on the east land, and after that we will have no more space for expansion," he said, adding that the government might provide additional space based on the growth and its positive impact on the economy.

The zone currently has about 1,500 companies, and while the space required differs vastly for each company, Dr. Al Zarooni said the new buildings would accommodate over 1,000 more companies.

Total leasable area for the new project will be 100,000 square metres, while the built-up area will be 320,000 square metres.

Earlier, H.H. Sheikh Ahmed also referred to the vital role Dubai Airport Freezone plays in adding considerable value to the national economy, and Dubai's economy in particular. It focuses on attracting outstanding companies in different service sectors run by a professional team which has led to real growth in the emirate's economy.