Business | Technology

Silicon Oasis profit surges 134%

Records jump to Dh131m last year while asset base increases to Dh7.5b

  • Gulf News Report
  • Published: 00:00 April 19, 2012
  • Gulf News

The Dubai Silicon Oasis headquarters
  • Image Credit: ABDEL-KRIM KALLOUCHE/Gulf News
  • The Dubai Silicon Oasis headquarters. The integrated technology park recorded Dh719 million in revenues for 2011, up 5.1 per cent from 2010.

Dubai: Dubai Silicon Oasis (DSO) said it has recorded a 134 per cent jump in net profits to Dh131 million last year and its current asset base increased to Dh7.5 billion.

DSO earned Dh308.6 million in operating revenue in 2011. The integrated technology park generated Dh719 million in revenues for 2011, up 5.1 per cent from 2010.

Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Silicon Oasis Authority (DSOA), said: "The free zone witnessed a 43 per cent rise in company registrations, taking the total number of entities operating at the technology park to 531.

"European companies make up 32 per cent of the total number of companies operating at DSO, whereas American organisations comprise around 11 per cent. While Asian and Mena companies stand at 19 per cent and 37 per cent respectively, Australian companies make up one per cent. DSO hosts the regional headquarters of most of these companies."

DSO-based companies operate in various industries including software research and development as well as chip design and development for consumer goods, education and the service sectors. In addition, a range of companies work in the chemical products, semiconductors and solar energy space, and also offer communications and security solutions for sectors such as oil and gas, power, utilities, telecom operators, transport and fibre optics.

Home to 30,342 people, DSO aims to eventually accommodate more than 160,000 residents, he said.

Construction work

"In real estate, DSO sold or leased 85 per cent of the Dh1.55 billion Cedre Villas development during 2011, while registering 100 per cent occupancy of the project.

"Development and construction works are progressing in 106 locations within DSO. We have completed construction of 79 buildings since the inception of the park. We also aim to commence the third phase of the light industrial units. Comprising 22 units at a cost of Dh22 million, the construction is scheduled to be completed in the first quarter of 2013."

Shaikh Ahmad said: "Dubai Silicon Oasis Authority recently launched the Silicon Oasis Founders (SOF), a technology incubation centre wholly owned by the authority. SOF was set up in response to market indicators that businesses participating in an incubator programme are far more likely to succeed in the long term. We believe that our holistic incubation approach is especially well suited to meet this need and will emerge as a leading incubator that supports high potential technology ventures in the seed phase."

DSO has also finalised a Dh130 million sewer system network with a cap-acity to produce 3,000 to 10,000 cubic metres of water daily that can be used for agricultural irrigation. Currently 49 buildings have been plugged in to the sewerage system network and 12 buildings are currently being connected.

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