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The UAE second export category after crude oil is aluminum. Full version

Industrial sector in the UAE

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Manufacturing in the UAE has received a powerful impetus to the growth due to the application of the government programs on the national economy broadening and loosening the dependence on oil. The size of investments into the industrial sector has long ago beaten the billion mark level. Moreover, the industrial sector of the budget ranks second after the oil and gas fragment by the amount of its percentage in the gross national product.

A wide range of trends that distinguish the economy of the United Arab Emirates has changed in recent years. In particular, this is the active development of industrial infrastructure, economic liberalization and improvement of corporate legislation. The right-chosen strategy is already paying off, providing a steadily high economic performance.

UAE Manufacturing – main directions

Several key directions, which are of great interest to the potential investors, can be singled out among the major manufacturing directions:

  • Production of construction materials – the number of companies involved in the production of building materials is increasing rapidly every year. The UAE produces a variety of materials, PVC products, window frames and building blocks, tiles, roof tiles, marble, cement, etc.;
  • Food and Beverage Production Industry – this sector is represented by numerous factories and plants. These include sugar refineries, canning factories, fish, meat and dairy products factories, mineral water and carbonated beverages factories, fodder factories and milling plants;
  • Production of leather goods, clothing and textiles – the revenues from this industry make up about 15% of the total UAE exports. It should be noted that financial institutions and banks credit this sector willingly, what allows the use of the most modern equipment in the process of production;
  • Print production and pulp and paper industry – this branch of industry is pretty popular today. The majority of printers and publishing houses are concentrated in Dubai. They cover the ever-growing demand for advertising and printed materials;
  • Mechanical engineering, metal products and equipment manufacturing – the international partnerships allow the United Arab Emirates to build and launch the most advanced manufacturing lines. The major directions include repair and manufacturing of professional equipment, production of aluminium windows, air conditioning systems, distribution panels and, furniture. There are numerous mechanical workshops and factories.

The Emirate of Dubai is a vivid example of the swift expansion of the industrial sector. Manufacturing in Dubai has taken another step forward with the development of the specialized free trade zones.

Manufacturing in Dubai – government support and initiatives

The Government of the Emirate of Dubai has chosen the provision of a comfortable climate for private business as the main strategy of economic development. In addition to the creation of tax-free trade zones, the state annually invests billions of dollars into the industrial sector. Besides, the Government works on the improving the applicable corporate legislation of the UAE and the simplification of the registration procedures for foreign investors. Local authorities and the Federal Government are implementing a number of initiatives in consideration of the specifics of the industrial sector.

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