Dubai Exports makes major headway on Industrial Strategy 2030 goals

Saturday 27 July 2019
Sami Al Qamzi, Director General of Dubai Economy
Dubai - MENA Herald:

Dubai Exports, the export promotion agency of Dubai Economy, has successfully implemented over 60% of its initiatives designed in support of the Dubai Industrial Strategy 2030 in the first phase. The overall outcomes of the Phase 1 initiatives, which were endorsed by the General Secretariat of the Executive Council of Dubai, and sector-wise requirements as well as plans for 2019 were recently reviewed by Dubai Exports in a meeting held in accordance with its role in developing exports and driving industrial growth in Dubai.

"The Dubai Industrial Strategy 2030, launched by His highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, seeks to evolve Dubai into a global platform for industries based on knowledge, innovation and sustainability by enhancing industrial growth, industrial independence and integration between economic and strategic sectors," said Sami Al Qamzi, Director General of Dubai Economy.

 Al Qamzi added that Dubai Economy along with its agencies is translating the objectives of the Dubai Industrial Strategy into a co-ordinated approach between various government and semi-governmental entities working on modernising industrial activities in Dubai, developing of new industrial activities and enacting laws according to the labour market requirements. 

"The manufacturing sector is currently the fourth largest contributor to Dubai's economy, following the wholesale & retail trade, transport & warehousing sector and the financial sector. The favourable investment climate in Dubai has made the emirate a regional hub for light and medium industries in the mechanical, chemical, food and beverage, metal products, machinery and equipment sectors. We have now completed 60% of our Industrial Strategy 2030 initiatives for the first phase, which will be completed by 2021. The first phase will enhance production in Dubai by no less than three per cent and positively reflect on the value added in Dubai and the UAE,” Al Qamzi said.

"We have completed 60 per cent of the industrial strategy initiatives for the first phase, which will be completed by 2021, and this is expected to contribute to an increase of at least 3 per cent in production, which will positively reflect the value added of Dubai and the UAE in general. "

The manufacturing sector ranks fourth in terms of contribution to Dubai's economy after the wholesale & retail trade, transport & storage, and financial sectors respectively. The favourable investment climate has made Dubai a hub for light and medium industries regionally, particularly those manufacturing mechanical equipment, chemicals, food and beverage products, metal products, machinery and equipment.

Sultan bin Sulayem, Group Chairman and CEO of DP World said: “Since His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced the Dubai Industrial Strategy 2030, DP World proactively established a manufacturing platform for global businesses in our Parks & Zones. Jebel Ali Free Zone (Jafza), DP World’s flagship business and logistics hub, has seen several new companies registering in the strategic sub-sectors of Aluminium & Fabricated Metals, Machinery & Equipment, and Fast-Moving Consumable Goods (FMCG). DP World and Jafza remain committed to sustaining this momentum and continuing to work towards future growth, increased export potential and mid to long-term economic gains for the Emirate of Dubai and the UAE.”

Marwan Abdul Aziz Al Janahi, Director General of the Dubai Science Park and Chairing Member of the Pharmaceuticals and Medical Equipment Taskforce of the Dubai Industrial Strategy 2030, said: "Dubai is characterized by its ease of business, quality of life, high import and export capabilities, ports and airports, protection of intellectual property, government incentives, trade relations and industrial policies. Given these fundamentals, we aim to position ourselves on the global pharmaceutical industry map by creating opportunities for international pharmaceutical firms looking to expand and reduce costs through shifting part of their manufacturing as well as research and development centres from developed countries, Our mission is to help them move to Dubai and benefit from the advantages Dubai and the UAE have, especially as a hub capable of hosting global companies.”

"Dubai is moving confidently towards developing an advanced industrial sector that contributes to the emirate’s economic diversification in line with the vision and strategy of the leadership to register comprehensive and quality achievements in various vital sectors," said Saud Abu Al Shawareb, Managing Director, Dubai Industrial Park. “In line with the Dubai Industrial Strategy 2030, we provide an attractive business environment for international, regional and local investors, traders and factories by facilitating business, providing advanced infrastructure and integrated services including manufacturing and storage facilities, offices, industrial land and commercial space.”

Al Shawareb added that the Dubai Industrial Park has enlisted more than 730 business partners since its establishment in 2004. “The number of factories in the Park has increased by around 30 in 2018 and we have 130 operating factories now. We aim to bring the number of working factories to 200 by the end of this year, which in turn will contribute to increasing industry output and GDP growth."

Engineer Saed Al Awadi, CEO of Dubai Exports, said: "Dubai Exports works with more than 25 government entities and free zones, including industrial parks, legislative authorities and the private sector, to implement the Dubai Industrial 2030 strategy. Specialised groups comprising 44 members, including from Dubai Industrial Park, Dubai Science Park, Jebel Ali Free Zone and the government support team for industries, are focusing on each of the priority sub-sectors targeted in the Strategy.”

Al Awadi said that 67 initiatives are being implemented to support the four main themes - industrial finance, industrial infrastructure development, promotion of local industries and attraction of future industrialists and experts – of Dubai Industrial Strategy 2030. “These initiatives were developed by the work teams after analyzing the maturity of the industrial environment in the emirate, contributing factors at the local and global levels and technical competencies of local industries. The industrial infrastructure, availability of incentives, financing, environmental sustainability factors, manpower, technology adoption and other factors in each of the target sub-sectors were also evaluated.”

In 2017, the industrial production in Dubai increased 13% over 2016 to reach AED 135 billion, indicating increasing demand and competitiveness of local products as well as improved consumer confidence in such products. The industrial sector in Dubai is one of the leading sectors of economic diversification and a booming sector capable of achieving more growth and sources of income and reducing dependence on abroad. The emirate of Dubai has developed the necessary infrastructure to achieve its goal by creating an attractive environment for industrial investment across a range of sectors, whether for domestic consumption or export.

A recent report by the Business Registration & Licensing (BRL) Sector in Dubai Economy on the development of the industrial sector in Dubai since 1963 to the end of 2018 reveals the crucial role of the sector in boosting GDP (gross domestic product) growth in the UAE.

The number of industrial units that opened in Dubai between 1963 and 2018 was 6,178 and between 2006 and 2018, there was a 78.8% increase in industrial units, from 1065 to 1904. The report pointed out that Dubai had 4,334 active industrial units as of the end of 2018. Gender-wise, 85.4% (3,701) of the industries in Dubai were owned by men while there were 633 women owners. Indians were the most active businessmen in the emirate’s industrial sector, followed by Pakistanis, British, Jordanians, Lebanese, Egyptians, Saudis, Canadians, Americans and Kuwaitis.

Al Quoz Industrial Area had the largest number of active industrial units (314) in Dubai, followed by Dubai Investment Park 1 (311), Jebel Ali 1, Jebel Ali Industrial Area 2, Al Qusais 1, Ras Al Khor, Jebel Ali Industrial Area 3, Al Qusais Industrial Area 2 and Al Quoz Industrial Area 2. Region-wise, Bur Dubai had the largest share of operating industries at 3,103 (71.6%) followed by Deira (1,213) and Hatta. 

According to the report the most prominent industrial activities in Dubai include construction metal products, wood and furniture, metals workshop, food industries, chemicals, bricks and building stones, machinery and equipment, contracting and related equipment and engines, food packaging, baking, plastics, and glass. The emirate’s industrial sector employs about 108,805 people and the rate of survival of these companies is 75%.

Reiterating the importance of the maritime sector to the Dubai Industrial Strategy, Amer Ali, Executive Director of the Dubai Maritime City Authority said the sector has proven to be a cornerstone of diversification and growth. “Concerted efforts of our strategic public and private sector partners have seen the maritime sector growing remarkably in 2018 with significant developments across ports, operations, maintenance, ship building, dry docking, finance and insurance.”

Amer Ali added that Dubai Maritime City is looking forward to a larger role for the maritime sector in accelerating growth and diversification in Dubai in partnership with Dubai Exports and in line with the Dubai Industrial Strategy so that Dubai becomes a global platform for knowledge-based industries.

Tahnoon Saif, CEO of Aviation District in Dubai South, said: "We aim to achieve the Dubai Industrial Strategy 2030 vision of making Dubai a regional and global aviation hub by attracting key aviation industries in the coming years and strengthening Dubai's competitiveness across the sector, especially in the areas of aircraft maintenance and spare parts as well as research and development.”

Growth in Dubai’s industrial sector has been relatively stable in recent years, During 2014-2018 the average GDP contribution of the sector ((at constant prices) has been 9.6%. The manufacturing sector also contributes significantly to direct and indirect employment in Dubai. A survey in 2018 found that about 56,042 workers are engaged in the manufacture of base metals and metallurgy in Dubai and that was 21% of the total workforce in the manufacturing sector. The Manufacturing and repair of machinery and transport equipment had a share of 14% (37,508 workers), food and beverage manufacturing accounted for 13% (33,352), and 27,790 people (11%) were employed in the production of other non-metallic minerals products.

A survey of manufacturing activities for the fiscal year 2017 issued by the Dubai Statistics Centre in 2018 revealed that the manufacturing of base metals and metal products, excluding transport equipment and machinery, accounted for about 26% of the total value added by the manufacturing sector. Manufacturing and repair of machinery and transport equipment followed at 14%, food and beverage products by 12%, and pharmaceuticals and chemicals contributed 11%. The net value added by these sub-sectors exceeded AED 39 billion.

In terms of industrial production, base metals and metal products, excluding transport equipment and machinery, accounted for 25% of the total generating 33 billion dirhams while the food and beverage industry had an output of AED 20 billion (15%). The emirate also had AED 16 billion worth of coke and refined petroleum products manufactured locally. Manufacturing and repair of machinery and transport equipment accounted for 10% of the total production.

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