Thu, Nov 28, 2024 | Jumada al-Awwal 26, 1446 | DXB 0°C

DIEZ’s economic zones record 64.6% profit surge

Market value of its net assets exceeded Dh20.8 billion in 2023

Published: Mon 4 Mar 2024, 6:46 PM

By
Issac John

The headquarters of Dubai Silicon Oasis Authority, one of the three free zones under the Dubai Integrated Economic Zones Authority. — File photo

The operating profits of the Dubai Integrated Economic Zones Authority surged year-on-year by 64.6 per cent in 2023, underscoring DIEZ’s pivotal impact on the Dubai economy.

DIEZ, which oversees the operations of three economic zones, including the Dubai Airport Free Zone, Dubai Silicon Oasis, and Dubai CommerCity, has seen the market value of its net assets exceeding Dh20.8 billion in 2023.

DIEZ said it succeeded in reinforcing growth in earnings before interest, taxes, depreciation, and amortisation by 49.2 per cent, alongside an 8.1 per cent increase in total revenues. “These figures underscore the role of DIEZ as a key contributor to Dubai’s economy. Economic zones overseen by DIEZ have seen an increase of 15.3 per cent in companies registered under their umbrella. The total number of personnel working in DIEZ economic zones saw a marked rise of 30.5 per cent to reach 70,000,” the economic zones authority said in a statement.

“These accomplishments highlight DIEZ’s direct contribution to Dubai’s GDP, which stood at 5.1 per cent. Moreover, economic zones affiliated to DIEZ have experienced substantial growth across six key sectors, which collectively represent 95 per cent of total companies hosted,” it said.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DIEZ, said DIEZ has implemented ambitious strategies to encourage investment, enhance gross domestic product, and bolster non-oil foreign trade in Dubai. “These strategies reflect the authority’s commitment to fostering sustainable growth for Dubai and contributing to the Dubai Economic Agenda D33 by anticipating future trends, and proactively preparing for them. DIEZ remains dedicated to solidifying Dubai’s position as a leading global investment destination across various sectors as the positive results in 2023 demonstrate.”

Sheikh Ahmed said the record-breaking results achieved within two years since the inception of DIEZ mirror Dubai’s rapid economic growth. “They exemplify DIEZ’s steadfast focus on supporting Dubai’s overall economy by creating an economic ecosystem that caters to vital strategic sectors, while enhancing the quality of services provided to the business community. DIEZ’s achievements are aligned with the leadership’s vision to establish Dubai as a centre for economic and investment excellence, offering promising opportunities for local and foreign companies alike.”

Dr. Mohammed Al Zarooni, executive chairman of DIEZ, said the results achieved in 2023 showcase DIEZ’s commitment to advancing Dubai’s economy and strengthening its competitive position globally. “These efforts support Dubai’s aspirations to build one of the world’s best economies in line with the strategy outlined in the UAE Centennial 2071 and the ‘We the UAE 2031’ vision.”

Al Zarooni said integrated economic zones in Dubai continue to grow in significance, offering promising opportunities across various sectors and fostering the emergence of new industries based on knowledge, creativity and innovation. “This dynamic environment has allowed economic zones to achieve these exceptional results and lay a strong foundation for future contributions to Dubai’s growth. DIEZ’s achievements are aligned with the strategic vision of our wise leadership, and the goals of the Dubai Economic Agenda D33 to double the size of Dubai’s economy over the next ten years and establish it as one of the world’s top three urban economies,” he added.

“Our commitment to providing an ideal environment for small and medium-sized enterprises and new sectors was clearly demonstrated through the launch of a venture capital (VC) fund worth Dh500 million. This move represents a significant step forward in our efforts to support entrepreneurs, investors and emerging companies, which will play a major role in the growth of Dubai’s economy in the next decade,” said Al Zarooni.

The fund is the first investment programme launched under the name of Oraseya Capital, the venture capital arm of DIEZ specialising in venture investment operations in startups. It will play a pivotal role in supporting startups, starting from the pre-seed stage, and extending all the way to the Series B investment stage.