DAFZA accounted for 11% of Dubai’s non-oil foreign trade in H1 2021

The contribution of the Dubai Airport Freezone Authority (DAFZA) to Dubai’s non-oil foreign trade for the first half of 2021 reached 11 per cent.

H1 trade in the freezone grew 34 per cent over the corresponding period last year to reach Dhs77bn, with a trade surplus of Dhs6.2bn.

Imports recorded a year-on-year growth of 44.5 per cent in H1 2021, reaching Dhs35.4bn, which represents 8.5 per cent of Dubai’s total imports.

In terms of re-exports, DAFZA grew 24 per cent to Dhs40.8bn, representing 20.5 per cent of Dubai’s total non-oil foreign trade. Exports saw a 501 per cent growth compared to the same period last year.

Machinery, sound recorders, TVs and electrical equipment were among the key commodities traded in DAFZA. Trade in these commodities grew 43 per cent year-on-year in the first half of the current year. As a result, the sector represented 74.4 per cent of exports and re-exports amounting to Dhs31bn and 76.8 per cent of imports that amounted to Dhs27.2bn. This was followed by the precious stones and metals and jewelry cluster, which came in second with a 9 per cent growth from the previous year. The cluster accounted for 19.4 per cent of exports and re-exports amounting to Dhs8.1bn and 16.8 per cent of imports at Dhs5.9bn. These two clusters represent approximately 94 per cent of DAFZA’s overall trade.

.@DAFZAOfficial announces that its contribution to Dubai’s non-oil foreign trade for the first half of 2021 reached 11%. H1 trade in the Freezone grew 34% from the same period last year to reach AED77 billion, with a trade surplus of AED6.2 billion.https://t.co/eLjxLcSH91 pic.twitter.com/ltUR9cyVsu

— Dubai Media Office (@DXBMediaOffice) October 6, 2021

China was DAFZA’s largest commercial partner with a 30 percent share of trade valued at Dhs23bn in the first half of the year, representing a growth of 70 per cent year-on-year. Iraq came in second at 7.1 per cent at Dhs5.4bn, followed by India at 4.6 per cent with Dhs3.3bn. DAFZA’s trade with Turkey also saw a five-fold growth in the first half of 2021.

In terms of imports, China came in first at 65 per cent, followed by India at 8 per cent, and both Turkey and Vietnam at 5.8 per cent.

Read: Dubai’s DAFZA records 8.3% increase in sales revenues for H1 2021

“Dubai is on track to achieve its foreign trade target of Dhs2 trillion over the next five years. To realise this, it is strengthening foreign connections and adding 200 new cities to its network of global trade partners. In addition, DAFZA is continuing to grow its trade movement, with more strategic initiatives that elevate its services, customs facilities, as well as investment and commercial incentives,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman of DAFZA.

In August, DAFZA revealed that it had achieved an 8.3 per cent growth in new sales revenues for H1 2021, resulting from a rise of 24 per cent in the leased areas compared to the same period last year.

Read: Dubai’s DAFZA records 8.3% increase in sales revenues for H1 2021

DAFZA also recorded an increase in the number of registered companies by 88.4 per cent in the first half of 2021, compared to the same period in 2020.