Dubai Airport Freezone Authority (DAFZA) has announced that its foreign non-oil trade reached more than Dh119 billion in 2020. Image Credit: File photo

Dubai: Dubai Airport Freezone Authority (DAFZA) has announced that its foreign non-oil trade reached more than Dh119 billion in 2020.

The free zone 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 of Dubai. This affirms the free zone’s capability in overcoming the challenges and consequences of the pandemic. The results demonstrate DAFZA’s integrated ecosystem that ensures continuity of global trade despite various economic conditions and fluctuations.

DAFZA’s 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. 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.

In the second half of 2020, DAFZA witnessed growth in total trade by 7.1 per cent 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 7 per cent, and re-exports by 4.5 per cent.

“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,” said Dr. Mohammed Al Zarooni, Director General of DAFZA.

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 AED11.8 billion. India was third with 7 per cent at Dh8.6 billion.

In terms of imports, China ranked first with 62.6 per cent, followed by India with 15.5 per cent and USA with 5 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.