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Dafza's non-oil foreign trade exceeds Dh119 billion in 2020

Dubai - Free zone achieves a trade surplus of Dh15.8 billion; contributes 10% to Dubai’s non-oil foreign trade in 2020

Dubai Airport Freezone Authority, or Dafza, on Wednesday said its non-oil foreign trade hit Dh119 billion last year despite challenges posed by the Covid-19 pandemic.

The free zone, which contributed 10 per cent to Dubai's non-oil foreign trade and 25 per cent to the total trade in free zones in the emirate, said its trade witnessed exceptional growth compared to the same period last year during the third and fourth quarters in 2020 by 36.4 per cent and 23 per cent, respectively.

Dafza witnessed growth in total trade by 7.1 per cent in second half of 2020 compared to the first half of the year. This is due to the increase in imports of all types of goods by 10.7 per cent and exports by seven per cent and re-exports by 4.5 per cent.

“The free zone also achieved a trade surplus of Dh15.8 billion, which accounted for Dh8.5 billion in the first half and Dh7.4 billion in the second half of the year,” the free zone said in a statement on Wednesday.

Credit goes to visionary leaders

Dr Mohammed Al Zarooni, director-general of Dafza, attributed the free zone performance credit to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, and Ruler of Dubai, several economic stimulus packages and strategic initiatives have been implemented.

“These ongoing activities aim to support the economic landscape and business operations within the emirate. Other strategies aimed at enhancing logistical operations and ensuring smooth trade processes have allowed the emirate to continue on its path to recovery following the implications brought on by the pandemic,” he said.

He said the continuous accomplishments reflect Dubai's role in sustaining economic activities and enhancing trade on a regional and global scale in the face of crises and unprecedented events.

“Dafza consistently contributes to the enhancement and continuity of trade activities. The free zone will continue to provide the necessary capabilities to allow the emirate's economic landscape to flourish and further expand its reach within crucial industries and regions," Al Zarooni said.

Top trading partners, goods

In terms of goods, machinery and electrical equipment ranked first for Dafza's trade in 2020, making up 76.7 per cent and a value of Dh51.7 billion for exports and re-exports, and 74.8 per cent and a value of Dh38.6 billion for imports.

Pearls, semi-precious stones and metals followed this with 16.2 per cent and a value of Dh10.9 billion for exports and re-exports, and 17.7 per cent and a value of Dh9.1 billion for imports. Both sectors represent 93 per cent of Dafza's total trade.

Asia ranked first in terms of major trading partners with a percentage of 42.6 per cent share in total Dafza trade, followed by Mena countries with 37.9 per cent, in which the GCC countries accounted for 17.8 per cent. Europe ranked third with a rate of 13.6 per cent in total Dafza trade.

“China was Dafza's biggest trade partner in 2020, with 27 per cent of a trade valued at Dh32.3 billion, followed by Iraq with 10 per cent at Dh11.8 billion. India was third with seven per cent at Dh8.6 billion,” according to the statement.

In terms of imports, China ranked first with 62.6 per cent, followed by India with 15.5 per cent and USA with five per cent. Iraq ranked first in exports and accounted for 17.5 per cent, followed by Switzerland with 7.5 per cent and Saudi Arabia with 6.2 per cent.

DAFZA had launched a series of economic stimulation packages to support multinational companies and SME's during the unprecedented economic challenges of the pandemic across all sectors. The incentive packages proved their value in ensuring companies have the flexibility to mitigate the challenges of the pandemic, in line with Dubai's approach and objectives.

— muzaffarrizvi@khaleejtimes.com