Dubai Integrated Economic Zones Authority's first-half revenue jumps 5%

The hub's earnings before interest, taxes, depreciation and amortisation during the six-month period rose 34%

Dubai’s economy grew an annual 2.8 per cent in the first quarter of the year to $30.3 billion. Reem Mohammed / The National

The Dubai Integrated Economic Zones Authority, which includes the Dubai Airport Free Zone, Dubai Silicon Oasis and Dubai CommerCity, reported a 5 per cent annual increase in its total revenue in the first half of 2023.

The company’s earnings before interest, taxes, depreciation and amortisation (ebitda) in the January-June period rose 34 per cent, the Dubai Media Office said on Wednesday.

The media office did not disclose the exact value of earnings.

“DIEZ’s strong financial results further contribute to raising Dubai’s status as a city at the forefront of global trade and supply chain recovery and a leading international economic and logistical hub,” Sheikh Ahmed bin Saeed Al Maktoum, chairman of the DIEZ, said.

“Our robust momentum of growth encourages us to continue strengthening our strategic plans to enhance the contribution of free zones to Dubai's GDP [gross domestic product] to Dh250 billion by 2030.”

DIEZ reported a 10 per cent growth in revenue from leasing operations, a 36 per cent jump in revenue from government services and a 39 per cent growth in licencing revenue in the first half of the year.

Its three economic zones, the Dubai Airport Free Zone, Dubai Silicon Oasis and Dubai CommerCity, achieved a combined 17 per cent year on year growth in revenue and 20 per cent growth in Ebitda during the period.

In 2021, Sheikh Ahmed approved the organisation’s new structure that was aimed at enhancing free zone integration in the emirate and providing comprehensive solutions to investors and companies.

Integrating the three free zones aims to strengthen Dubai’s economy and enable the emirate to provide an “exceptional investment and business experience and high-quality solutions and services to businesses”, DIEZ said at the time.

DIEZ said its efforts are aligned with the objectives of the Dubai Economic Agenda D33 that aims to double Dubai's economy and make it one of the world’s top three urban economies by 2033.

Dubai's economy, which made a strong rebound following the coronavirus-induced slowdown, has carried the growth momentum into this year.

The emirate's economy grew an annual 2.8 per cent in the first quarter of the year to Dh111.3 billion ($30.3 billion), extending the "robust momentum of growth" achieved in 2022, when its economy expanded by 4.4 per cent.

Dubai's growth outpaces the seasonally adjusted growth output of 1.6 per cent for Organisation for Economic Cooperation and Development countries. The European Union grew by 1.1 per cent in the first quarter, while the US economy grew by 1.8 per cent.

“This growth complements our efforts to strategically and sustainably contribute to Dubai’s non-oil economy and develop a business environment that supports the growth of companies in different sectors," Dr Mohammed Al Zarooni, executive chairman of DIEZ, said.