Article image: Mechanical engineering industry in the UAE

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Currently, there are more than 7,5 thousand companies registered in RAKIA Free Zone Full version

Mechanical engineering in the UAE has received a powerful impetus to the development due to the favourable economic conditions and the availability of the modern extensive business infrastructure on the territory of the country. It is the fact that many international companies, which are engaged in this industry, found their niche in the country. Today, the most various companies and enterprises carry out their production activities on the territory of the United Arab Emirates. Among them, there are manufacturers of consumable and construction materials, hardware and complementary parts.

According to the international experts, the United Arab Emirates has created numerous opportunities due to the rapid development of infrastructure and unprecedented economic growth. Taking into account the fact that the revenues from the oil and gas sector became the basis of the economic growth, the mechanical engineering in the UAE is actively stimulated to the development and increase the aggregate of profits.

Mechanical engineering in the UAE – international experience and prospects

The advantages and opportunities for this economic sector could not remain unnoticed in the international arena. Thus, specialized enterprises for the production of complementary parts, where the innovative automotive technologies are used, were established on the territory of the Emirate of Dubai since 2006. A group of Korean entrepreneurs became an investor of this project. According to the statement of foreign investors, the attractiveness of the jurisdiction of the UAE is stipulated by several key factors, in particular:

  • possibilities of the specialized free trade zones;
  • vast resource base;
  • favourable ratio of cost and effectiveness in terms of transportation and energy costs.

Economic zone in the Dubai International Airport can serve as an example of successful implementation of state initiatives in the field of mechanical engineering. The advanced concepts, which allows to maintain a stable income from investments and to minimize administrative, managerial, and operating costs, are introduced here. A favourable combination of such factors as strategic location, flexible regulatory framework and high profit margins, has become the main mechanism, which attracts huge volume of investments into the mechanical engineering of the UAE.

It should be noted that the development of the mechanical engineering industry in the UAE takes place not only on the territory of the so-called free trade zones, but also beyond them. Federal and local authorities are striving to encourage the development of the national economy in every possible way, thus ensuring the development of the mechanical engineering everywhere.

Preconditions for the development of the industry

Among the main reasons that have turned the United Arab Emirates into the major trading and manufacturing hub, experts note increase in working capital and increase in the turnover of the manufacturing sector. In addition, this was contributed by the improved international logistics, which lead to the increase in the turnover of raw materials, complementary parts and spare parts for various professional industrial equipment. All this together has allowed the reduction of raw material and transportation costs of the international business.

Mechanical engineering in the UAE is experiencing a peak in business activity owing to the presence of the modern air and sea transport hubs, and the possibility of implementation of the effective schemes of selling the industrial products and constant development of production capacities.

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