The Dubai Airport Freezone (DAFZ), a tax neutral zone in the vicinity of Dubai International Airport, has reported that business sales increased 63% during the first half of 2010 compared to the same period last year.
According to statistics released by the DAFZ, the number of companies expanding offices saw a rise of 80%, taking up an additional 64% of office space. In addition, over the period, increased business led profits higher, with companies achieving profit of 11% above targets.
Commenting, Sheikh Ahmad Bin Saeed Al Maktoum, Chairman of DAFZ and President of Dubai Civil Aviation, said:
“The increase in the number of American and European companies in the first six months by 50% compared to last year, and the 25% increase in companies from Asia and the Middle East, is evidence of the innovative services and unmatched facilities Dubai Airport Freezone [offers].”
Based next to one of the world’s busiest airports and providing a tax-free environment, the free zone houses over 1,500 companies, the majority of which are from Europe and the United States.
“The results of the first six months recorded by DAFZ is evidence of the healthy business environment in Dubai in particular and the UAE in general. It also shows the interest of international companies to establish their operations in the country,” Ahmad added.
The Free Zone has been recognized as a top free zone globally, and the leading free zone in the Middle East, offering a number of incentives to prospective investors, including: exemption from corporate income tax, import and export taxes, and personal income taxes; no customs duties; no restrictions on foreign ownership; no currency restrictions; and no restrictions or taxes on the repatriation of capital and profits.
The DAFZ plans to continue expanding, by 75,000 square feet in 2011, and by 230,000 square feet starting in 2012.