Dubai Silicon Oasis Authority (DSOA), a key innovation hub for hi-tech industries in the region, said its net profit for 2016 surged to Dh234.7 million ($64 million), up 27.7 per cent over the previous year, according to a report.

Its recurring revenue by the year-end too increased by 9.4 per cent to hit Dh518 million ($141 million) compared to the previous year, said Emirati news agency Wam, citing a top official.

"Dubai Silicon Oasis has successfully transformed into a preferred integrated destination for IT companies and entrepreneurs, and an exemplary pioneer of the smart city model," remarked DSOA chairman Sheikh Ahmed bin Saeed Al Maktoum while announcing the results.

The DSOA’s yearly results showed positive performance across all areas of operations in 2016.

Sheikh Ahmed pointed out that the hi-tech free zone was a key contributor to the development of Dubai’s economy, based on knowledge, innovation and technologies of the future.

" DSO has succeeded in reinforcing its position as an early adopter of smart city development through proactively implementing and integrating technology into the daily lives of its residents and employees," he noted.

Summarising DSO’s achievements, Sheikh Ahmed said: "The number of companies operating out of the technology park grew from 1,920 in 2015 to 2,120 in 2016, marking an increase of 10 per cent. DSO’s outstanding record in drawing interest from hi-tech companies, investors and entrepreneurs was a testament to the exceptional services and state-of-the-art facilities it offers."

"The free zone plays a significant role in attracting direct investment into Dubai and the UAE as a whole," he added.

Sheikh Ahmed said these results reflected a robust growth in the technology sector, which is one of the most important sectors for the future and plays a pivotal role in shaping the post-oil economy and ensuring sustainable development.

"Going forward, in addition to providing a base for entrepreneurs and companies, DSOA seeks to contribute to the development of the technology sector and encourage open exchange of knowledge and expertise, engagement with the leaders in the sector, and training of national talent," he added.

Dr Mohammed Alzarooni, the vice chairman and CEO of DSOA, said: "Our vision and mission are based on developing an advanced and fully integrated free zone technology park that supports international companies in establishing advanced R&D facilities in the Middle East."

He noted that nearly 78 per cent of the companies based at DSO specialise in IT, while the remaining 22 per cent operate across a range of sectors including commerce and services.

As per the latest breakdown, 72 per cent of the companies at the hi-tech park are from the Middle East and Africa (MEA) region, 12 per cent are European, 12 per cent Asian, three per cent originate from the Americas, and one per cent from Australia & New Zealand.

As part of its continued efforts to position DSO as a preferred integrated destination for employees and residents, the Authority, in conjunction with external investors, is currently developing a series of residential, office, and light industrial units, stated Alzarooni.

In 2016, ground works were completed for 28 projects across a total area of 431,000 sq m, he stated.

Furthermore, work was initiated on 50 other projects spanning a total area of 1.52 million sq m, at a total cost of Dh7.5 billion ($2.04 billion).

With the aim of realising the vision of transforming Dubai into the smartest city in the world, Sheikh Ahmed recently unveiled the commemorative plaque and laid the foundation stone of Silicon Park, the first integrated smart city to be built in DSO.

The project, which will come up over an area of 150,000 sq m, is estimated to cost Dh1.3 billion ($354 million), according to Wam report.

The smart city, scheduled for completion by Q4 2018, will include 71,000 sq m of office space, 25,000 sq m of retail space, 46,000 sq m of residential space, a business hotel, a community centre, public gardens, and a selection of restaurants and cafes, stated the report.

In addition, the development will comprise modern business facilities including meeting halls and a multi-purpose conference centre, it added.