Dr Zarouni: more efforts to sustain achievements

The Dubai Airport Free Zone (Dafz) is a flourishing operation keeping pace with demand through expansions that will raise capacity substantially, Dafz Authority (Dafza) director general Dr Mohammed Zarouni has said.

“The advantage we add to the airport community, customs and Dubai’s overall GDP is commendable,” he observed.
In his remarks on the 10th anniversary of Dafz’s establishment, Dr Zarouni commented that the free zone had done “extremely well” in the last few years, its progress linked to the prosperity of the region in which it existed. Dafz had exceeded the expectations and aspirations for this stage in its journey.
The official attributed its success to “unbridled” support extended by the Dubai Government and the high quality of the enclave’s services, its customer-oriented policies, customer trust and the dedication of its staff in implementing strategic goals.
The free zone achieved “extraordinary” success in recording a 62 per cent increase in the number of companies during 2005 compared with the previous year. More than 318 multinational and regional companies came aboard during 2005, bringing the total number of companies operating in the free zone to 825 by the end of that year. According to the director-general, the total is now more than 900
Dr Zarouni said Dafz’s trade sector represented around 65 per cent of the total business followed by the services sector, 34 per cent, and as many as 60 per cent of the companies were reputed multinationals. More emphasis would be paid on the aviation sector as it held unlimited business opportunities.
He also discussed ongoing expansions related to Phases 5 and 6 and said after 2008 Dafz would achieve “full capacity” when phases 7, 8 and 9 were completed, unless more areas were allocated for expansions.
Dr Zarouni sent the following replies to questions submitted by Gulf Industry.

The Dubai Airport Free Zone (Dafz) has completed 10 years since it was established. What are your thoughts on this special anniversary?
Dr Zarouni: It has been my privilege to be part of such a successful project that started from scratch with less than 10 employees and less than 55 companies early in 1998. Today the Dubai Airport Free Zone Authority (Dafza) stands proud with more than 100 employees serving more than 900 major companies. We shall exert more efforts to sustain the success and the achievement. It is evident that the success of any free zone is linked to the economic prosperity of the region in which it exists. Dafza has done extremely well in the last few years.
 
What are the free zone’s accomplishments that you are most proud of?

Dr Zarouni: Dafza has a lot to be proud of, including its great success in attracting and luring global and multinational companies (MNCs). This has resulted in 60 per cent of the companies representing highly reputed MNCs. The advantage we add to the airport community, customs and Dubai’s overall GDP is commendable. Furthermore, we have always been able to achieve our target in terms of leasing out our facilities. Last but not least, it is the high-quality standard of services we offer to our clients that makes us proud to say that we are a customer-oriented free zone. In addition to all that, I’m quite proud of the dedicated staff that runs the entire operation and their commitment.
 
To what do you attribute the general success at Dafz?
Dr Zarouni: Our success is no doubt attributed to the unbridled support of Dubai’s government, the confidence and trust that our clients rest on us and the excellent job performed by the employees on implementing the strategic goals of Dafza.
 
Do you feel Dafz has fulfilled aspirations the government had for this stage in its journey?
 
Dr Zarouni: I firmly believe that Dafz has rather exceeded the expectations and aspirations and shall move on to achieve much more than the targeted goals.
 
Is there anything that Dafz should have done differently – perhaps paying more attention to particular sectors and less to others?
Dr Zarouni: Due to our strategic location within the vicinity of Dubai International Airport, our aim has always been to attract companies dealing in ‘high value, low volume’ goods.  We plan to put more emphasis on the aviation sector in the future as our experience revealed that this sector holds unlimited business opportunities. The sector represents around 15 per cent of the total business in Dafz. I guess it needs to be focused on. 
 
What lessons did the Dubai Airport Free Zone Authority learn in these 10 years?
Dr Zarouni: Serve your clients with dedication, transparency and honesty; plan well and stick to the strategic goals drawn to achieve competitive advantages, create close relations and communications with your clients and employees, and adhere to the international standards in services provided to the clients. Believe in change and development.
 
Dafza reported a 62 per cent increase in the number of tenants in 2005 over the previous year.  By most standards this is impressive growth. Are you satisfied with the performance or do you feel growth should have been 100 per cent?
Dr Zarouni: What we have achieved is quite impressive and we shall move on to achieve better in the future. I’m pleased with what my team is doing.
 
What business sectors are most active in the free zone?
Dr Zarouni: Being part of Dubai, the commercial hub of the region, the trading sector is the most active in Dafz representing around 65 per cent of the total business, followed by the services sector representing 34 per cent.
 
What growth are you looking at for full-year 2006?
Dr Zarouni: As I have mentioned earlier, the year 2005 was extraordinary with robust growth of more than 62 per cent in the number of new companies registered at Dafz. Our target for the current year is to exceed the line of the previous year in terms of registration. Phase 5 which is already 100 per cent leased out will be ready for occupancy by September 2006. Our aim is to 100 per cent lease out the next upcoming Phase 6 office building, which will be ready in the second quarter of 2007, by the end of the year. We also aim to lease out all upcoming light industrial units (LIUs) for this year and all the remaining land plots in Dafz.
 
How do you visualise Dafza growing in the next five years or so?

Dr Zarouni: The demand for our services and facilities is increasingly growing and Dafz will have full capacity after 2008 following the completion of the new building phases 7, 8 and 9, unless more areas are allocated to some new expansion in the future.
 
How has Dafz contributed to Dubai’s economy?
Dr Zarouni: Dubai Airport Free Zone has greatly contributed to the overall growth and services of the airport community. Having multinationals based in Dafz as a majority (for example Boeing, Airbus, Audi, Porsche, Danzas and MAN to name a few), and their growing turnover, has also contributed in each sector of the country’s economy.