Dubai: An increase in new investments and sale and lease of properties pushed the revenues and profits of Dubai Silicon Oasis to a record high during the first half of the year, its results show.
Dubai Silicon Oasis (DSO), Dubai's answer to America's Silicon Valley, Saturday said it earned a 148 per cent increase in revenue for the first half of this year compared with the same period last year. The high-tech park recorded a 131 per cent growth in profits in the same period.
"The number of companies operating in the high-tech park for the micro-electronics and the semiconductor industry rose by 25 per cent to 318 for the same period," Dubai Silicon Oasis Authority (DSOA), said in a statement.
Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of DSOA, said the results achieved in the first quarter of 2010 confirm Dubai Silicon Oasis's strong investment fundamentals and its growth opportunities.
He also commended the Dubai Circuit Design Centre, headquartered at Dubai Silicon Oasis, for winning six new projects in collaboration with leading technology companies, to design circuits for semi-conductor chips of TSMC 40 nanometers.
Strategy
A wholly-owned entity of the Government of Dubai, the Dubai Silicon Oasis operates as a free zone technology park for the semiconductor, microelectronic and other high technology-based companies looking to set up their regional headquarters and R&D facilities in the Middle East and Africa region.
Mohammad Al Zarouni, Vice-Chairman and CEO of DSOA, said: "Since the global financial crisis unfolded, Dubai Silicon Oasis has devised a flexible strategy to tackle future challenges and enable smooth operations while maintaining its annual growth rate.
"The excellent first quarter performance bears testimony to the effectiveness of our meticulous policy.
"In addition, Dubai Silicon Oasis has attracted global technology firms by providing additional services and facilities and creating an ideal environment for start-up businesses.
"Our client portfolio currently comprises 66 per cent technology companies, ranging from IT and electronics to telecommunications, semi-conductor and energy companies.
Economic shift
"Engineering and the retail sector represent four per cent each of the total number of companies at Dubai Silicon Oasis, while 26 per cent encompass diverse businesses."
A break down of companies in the DSO indicates 45 per cent are European, 11 per cent American and 18 per cent Asian.
Companies from the Middle East and North Africa region constitute 26 per cent of the entities operating in the park.
The results of the DSO, along with a string of others, reflect a shift in Dubai's economy, which was once excessively reliant on the real estate sector.
Dubai's economy is now looking at non-real estate sectors to power its growth.
Eckart Woertz, Director of Economic Studies at the Gulf Research Center, said, "Real estate has never been the foundation of sustainable growth.
"At the end it is about the businesses that are located in the real estate. Seen from this perspective it is good when Dubai is concentrating on its traditional advantage as a trading hub."
