UAE’S Rapid Progress In Industrialization

The United Arab Emirates boasts of having the second-largest economy in the Arab world and last year it became the fifth fastest growing economy in the world. This triumphant growth is attributed to the flourishing trade in the region and a noticeable progress in developing key economic growth driving sectors. The UAE government has increasingly shifted its focus to the services, construction and manufacturing sectors.

Promoting industrial development in the United Arab Emirates is linked to the government’s non-oil based economy growth roadmap. The country has taken significant strides to develop its industrial base with investments amounting to more than Dh 127 billion. Ranging from avant-garde infrastructure to a robust communication network; favorable government incentives to a well-connected transportation system and the development of specialized clusters and free economic zones with lower operational cost, UAE provides companies with the most lucrative options for setting up their manufacturing factories in the country. 

The UAE government has established more than 30 free zones across the country. Amongst many other benefits, setting up a manufacturing plant in the free zone essentially means no customs duty is levied upon the importation of raw materials in the free zone and the exportation of goods and outside of the free zones. It is estimated that the rise in the number of industrial facilities in the UAE will be in excess of 6,000. Industries such as processed food and beverages, plastics and rubber, electrical machinery and equipment, chemicals and products, minerals and products, base metals, publishing and printing, pearls, precious stones and metals are considered as the major manufacturing sub-sectors that contribute significantly to the economy.

Recently, the UAE Cabinet also endorsed the launch of the Industrial Coordination Council that has been designed to boost industrial development in the country. The UAE manufacturing industry’s growth is driven by the government’s vision to diversify the economy. With an aim for UAE’s manufacturing sector to contribute 25% to the country’s overall GDP by 2025, the country’s industrial development is noteworthy. All the seven emirates within the country are inviting global companies to set up its manufacturing facility in the region thereby further boosting the growth of industrialization.

In a bid to promote industrial growth, Abu Dhabi intends to embark on an initiative to boost industrial production in the emirate. With a total investment of Dh 440 million, Emirates Aluminium Rolling LLC (Emiroll) plans to set up an aluminium rolling plant in the Khalifa Industrial Zone Abu Dhabi (Kizad).

The vantage location of the port of Jebel Ali, which is the world's largest man-made harbor and the biggest port in the Middle East makes Dubai an excellent hub for setting up manufacturing facilities. Co-located with Jebel Ali port, Jebel Ali Free Zone (JAFZA) is one of the world’s fastest growing economic zones with over 7000 companies. 

Ras Al Khaimah has seen a spike in a number of global players from across industries setting up a facility in the Emirate. The world’s fourth largest commercial vehicle maker, Ashok Leyland has announced Dh36.5 million expansion plans of its Ras Al Khaimah facility. Last year, Al Ain based Strata Manufacturing won a contract to manufacture Airbus A350-1000 Flap Support Fairings (FSFs) until 2023. Furthermore, Strata is the sole supplier of aileron assemblies to Airbus for the A330 and A330neo, the industrialization process of which is completed at its manufacturing facility in Al Ain.

Consumer giant Unilever is expanding its presence in the MENA region with its Dh 1 billion manufacturing plant located in Dubai Industrial City that is expected to be operational by 2017. Creating up to 400 jobs in the region, the manufacturing plant’s production line will cover a wide range of its personal care brands. 

Mr. Brad Hariharan, Regional Director, Expotrade Middle East, organizers of the GCC Manufacturing Excellence and Technology Summit said, “The UAE manufacturing industry has exhibited tremendous growth prospects over the past few years; the country’s success in diversifying its economy is commendable. Offering a broad spectrum of attractive features, UAE is focusing on the expansion of its industrial base, the second largest contributor to the country’s economy after Oil & Gas. The various attractive benefits and competitive advantages make UAE the preferred country of choice to establish a manufacturing plant.”

Dubai Industrial Park has been designed to foster industrial development in the region. With over 680 companies, it is one of the largest industrial hubs in the city that offers manufacturers an efficient business ecosystem and unparalleled logistical support. In comparison with the global market, setting up a manufacturing facility in the most cosmopolitan city in the world, Dubai, is considered particularly rewarding, which is reinforced by an investor-friendly government, business-friendly policies coupled with world class capabilities and ultra-modern infrastructure facilities. 

Against this backdrop, the GCC Manufacturing Excellence & Technology Summit will be held on 14-15 November 2016 at Sofitel Dubai The Palm Resort & Spa. The summit will bring together the full spectrum of the manufacturing sector - the who’s who of various international and regional organizations will attend the summit to learn of new developments in technology, processes that enable cost reduction, optimize performance and help achieve operational efficiency.