Dubai Airport Free Zone (Dafz) has gained from brand Dubai, while on its own it has diversified the range of sectors it hosts and is expanding space to take in more tenants, the head of the enclave has said.

Dr Mohammed Al Zarouni, director-general of the Dafz Authority (Dafza)  said aviation so far had been the core sector in the free zone accounting for more than 16 per cent of the business, but with new developments taking place in Dubai “we need to focus on sectors having more economic viability and visibility.”
 “We now concentrate on companies that make small but precious products such as gold, diamonds, electronics, cosmetics and medical supplies,” he said.
Dr Al Zarouni also stressed that Dafza was paying increasingly more attention to safety and health in line with the importance it attaches to corporate social responsibility. “Companies are today evaluated and measured by the contribution they make towards the community – its not just profitability and how much you get but how much you are contributing to the community,” he stressed.
Dafza aggregated 1,400 tenants at the end of 2007, a 25 per cent increase over the previous year.
The director-general said growth was creditable considering what he described as “tough market conditions.”  “We have managed to achieve what we planned for the year,” he added. 
Established in 1996, Dafz has been successful in attracting a large number of multinationals, these now comprising 35 per cent of the total.
Companies operating out of Dafz encompass sectors ranging from aviation and jewellery to electronics. Nearly 54 per cent of the tenants come from advanced industrial countries. European companies make up 41 per cent, 12 per cent are American and 19 per cent are from the Gulf while Australian firms make up one per cent.
“Since the beginning, we have believed in the policy of selection and have been concentrating on quality rather than quantity,” said Dr Al Zarouni.
 “We did not want to turn into mere renters but to attract technology and foreign investment, create job opportunities, revive services and build the economy of Dubai and the UAE in general.
“We believe the zone has to contribute to the gross domestic product of Dubai and add new value to the emirate’s economy. Therefore, we selected companies that can directly or indirectly contribute towards that end. Profits are not a top priority for us. Rather it is attracting technology, expertise and investments that can be of benefit to the country and Dubai’s economy.”
Commenting on factors behind Dafz’s growth, Dr Al Zarouni said Dubai had become a brand prompting many companies to set up base there. Other factors were the reasonable rates the free zone offered, its proximity to the airport and city centre and the high calibre of management as well as the security and stability that Dubai offered.
He added that the experience of multinationals in Dubai had been so good that word had gone around that the emirate was a good place to do business.
Expansions are in progress at Dafz to accommodate a larger number of tenants. Three buildings, numbers 7,8 and 9, are under construction and expected to be ready by the end of this year. These will accommodate 800 more firms. An East Phase expansion will begin soon and be ready by the end of 2009.  Once these projects are completed the free zone will have a total of 12 buildings offering over a million sq m of space. A headquarters building for Dafza is nearing completion.
Dr Al Zarouni said Dafza was considering acquiring land beyond the free zone area.
The expansions are not coming a day too early. “We will have major new companies as demand is high and a lot of American and European companies are looking at this region. Some companies from Saudi Arabia and Bahrain have also shown interest in Dafz,” said Dr Al Zarouni.
Following Dafz’s success, overseas authorities have sent in requests to Dafza to help establish similar enclaves in their countries, but Dr Al Zarouni said: “We are reserved for many reasons. We do not take a step unless we’re sure it will benefit us and our partners. We have to consider the economic situation, political stability, the city’s infrastructure and other elements.”
Among awards Dafza has received in recent times is the Middle East Logistics Award for the best airport business park in the region. UAE citizens account for 98 per cent of positions in higher management and 75 per cent overall at Dafza.