In an increasingly globalised business climate, worldwide expansion of trade and manufacturing has become imperative. The UAE is no exception to this rule and has already recognized the benefits of boosting its manufacturing sector. In fact, contribution of the industrial sector to the GDP currently stands at 14 per cent and the UAE has chalked out plans to increase this to 25 per cent in the next 15 years, In particular, significant investments will be made in petrochemical, fertilizers and metal production.
Worldwide, manufactures were worth $9,962bn in 2011, growing by 2% between 2005 and 2010. More recently in the region, estimates have put non-oil industrial growth at 9% from 2012-2013 – which will largely be driven by manufacturing.
Looking to the future aspects, manufacturing will provide a way for the Middle East and other economies to move away from their dependence on oil and gas. Manufacturing – including the key sectors that boost UAE Economy:
- Aluminum and Metals
- Crystal and Glass
- Electronics and Electrical
- Home and Garden
- Machinery and Tools
- Marble and Stones
- Medical Equipment (Health)
- Paints and Coatings
- Paper Making
The number of non-oil manufacturing companies in the UAE stood at 5,200 at the end of 2011, which shows effective growth of UAE economy.
Concurrently, the UAE is bidding to host the World Expo 2020 in Dubai under the theme ‘Connecting Minds, Creating the Future’. Every five years and for a period of six months, World Expos attract millions of visitors. The World Expo has never been held in the Middle East, Africa and South East Asia in the history of the event.
Currently, Dubai’s industrial production alone is valued at $54.4bn, contributing 13% of the Emirate’s GDP with the sector averaging growth of 8% a year since 2007. GVA from the manufacturing sector grew by Dhs18bn from 2006 to 2011 – a 24% increase overall – while 7.7% of the UAE‘s employed population was also found in the manufacturing sector in 2011.
Efficiently, UAE is in a position to raise manufacturing output, given availability of new capacity. This would result in an upward revision to the current growth estimate.