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Made in Dubai
DUBAI
2019
MANUFACTURINGGUIDE
22
WHYDUBAI?
TRADE EVENTS
OVERVIEW FUTURE GROWTH
GOVERNMENT SUPPORT
03 06
08 12
15
CONTENTS
Report dated December 2018
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Within the last decade, the contribution of the in-dustrial sector in Dubai’s Gross Domestic Product (GDP) ranged between 11% to 14%. Dubai has 18 industrial areas, eight of which are within Free Zones and representing 30% of total industrial ar-eas within the emirate.
The industrial sector is a key economic contribu-tor and enabler of non-oil GDP growth for Dubai and the contribution of manufacturing to the city’s GDP is growing each year. Producer Price Index (PPI) of Manufacturing Sector of Q2-2018 showed a year-on-year increase of 9.45% compared to Q2-2017, establishing the sector as the third largest in terms of GDP contribution.
1OVERVIEW
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In 2017, manufacturing activities contrib-uted 9.4 percent of Dubai’s GDP with a to-tal value of US$100 billion in 2017, regis-tering a 2 percent year-on-year growth and contributing by 6.8 percent to overall eco-nomic growth. Only transport and storage have seen a stronger growth rate than manufacturing in recent years and expec-tations are that the sector will contribute 25 percent towards the UAE’s GDP by 2025.
9.4%of Dubai’s GDP contrib-uted by manufacturing
activities worth
$100Bin 2017
300 customers from
57countries
EMAL (Emirates Aluminium Company)
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Homegrown companies such as Emir-ates Aluminium Company (EMAL), an operating subsidary of Emirates Global Aluminium (EGA) operates the world’s largest single-site primary aluminium smelting that produces foundry alloy, bil-lets and high-purity aluminum for high-tech uses. Dubai Cable Company (DUCAB), the region’s second biggest manufacturer of aluminium and copper electrical cables is also among the key drivers of Dubai’s manufacturing and in-dustrial output.
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OVERVIEW
Multinationals are joining the fray in grow-ing numbers, a recent example being the opening in Dubai in 2016 of Unilever’s larg-est personal care products manufacturing plant in the Middle East. The US$272 mil-lion facility will produce 500 million items annually primarily for export to Europe and the MENA region. And in 2017 FMCG major Nestle announced the opening of its 18th Middle East factory in Dubai South. The US$144.3 million plant will employ 340 people and produce coffee and other con-fectionaries for regional markets.
MULTINATIONALS INVESTMENT GROWTH
UAE-manufactured ex-ports have risen dramat-ically in recent years as indicated by the 15 per-cent rise in the manufac-turing activity income of Dubai Investments, the Dubai Financial Mar-ket-listed company, from US$ 381 million in 2016 to US$435.5 million in 2017.
15% rise in
manufacturing activity income
worth $435.5M
in 2017
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DUBAI INVESTMENTS
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FUTURE GROWTH
From 2007 to 2017, the UAE’s industry sector (which consists of the extraction, manufacturing, utilities and construction sectors) has grown by 31% and is forecast to grow a further 34% by 2027. During the same period, Abu Dhabi’s industrial sector is fore-cast to grow 56% and Dubai’s by 51%, up from 13% and 6% respectively. Presently this sector employs over two million people which accounts for around a third of total employment within the UAE.
Technologies such as artificial intelligence, data analytics, robotics and the Internet of Things (IoT) are revolutionising the manufacturing sector. Blur-ring the lines between machinery and software, these solutions are empowering employees, transforming business models, and optimising operations.
234%
forcast of UAE industry sector growth
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51%Dubai industry growth
NINE YEAR PREDICTED INDUSTRY
SECTOR GROWTH
77
FUTURE GROWTH
Dubai’s industrial growth is expected to reach US$16.1 billion and add 27,000 new specialised jobs by 2030.
From production lines to service delivery, every as-pect of the manufacturing process is being enhanced by digital transformation. In addition, IoT is helping many industries such as aluminium, steel, and phar-maceuticals to streamline asset management, de-velop products and improve the way customers are served. At the same time, cloud-based tools are fa-cilitating communications and cutting down on trav-el and support costs.
In March 2017 it was announced that the UAE’s first micro-factories will be established focusing on new manufacturing technologies like 3D-printing with one of the goals being to build a Dubai-based facili-ty focused on consumer goods and services compa-nies. The project is expected to play a crucial role in revolutionising Dubai’s design and manufacturing capabilities.
DIGITAL TRANSFORMATION
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The government has embarked on a concerted effort designed to promote, develop and sustain a prolific manufacturing and industrial sector in Dubai. Under its Dubai Industrial Strategy 2030, the government has identified 75 initiatives to transform Dubai into an international hub for knowledge-based innovation and sustainable in-dustrial activities.
The objectives behind the strategic framework are manifold and include the increase of total GDP and value-added of manufacturing by an estimat-ed US$4.9 billion and contributing to Dubai’s am-bition of becoming the centre for the global Islam-ic products market by increasing the number of halal-certified manufacturing companies.
3GOVERNMENT SUPPORT
Dubai IndustrialStrategy
2030
75initiatives
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$4.9B
estimated increase of total GDP and
value-added manufacturing
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AEROSPACE: Emirates airline is considered one of the lead-ing companies in the world and owns a large and competi-tive fleet globally. The strategy aims at supporting Emirates airline and Dubai’s longstanding competitiveness in this in-dustry over the long term, through the localisation of man-ufacturing capabilities in certain aerospace sub-industries.
MARITIME: DP World is considered one of the largest ports’ operators internationally. Given the continuous increase in magnitude and scale of trade and sea traffic, the strategy will aim to capitalise on such promising opportunities through the localisation of manufacturing capabilities in certain mar-itime sub-industries.
ALUMINIUM & FABRICATED METALS: Dubai is one of the leading producers of fabricated metals; particularly Alumin-ium. While this leading position is based on the manufac-turing of (upstream) primary products, the strategy will aim to enhance the emirate’s competitiveness and expand its production base to include (downstream) finished products.
FAST MOVING CONSUMABLE GOODS (FMCG): The selec-tion of this sector will directly feed into and support the vi-sion of Dubai being the ‘Capital of Islamic Economy’ espe-cially since Halal Industries is one of the key seven targeted sectors in that vision.
MACHINERY AND EQUIPMENT: This sector represents 25% of the overall industrial sector in Dubai. The sector is high-ly significant and its competitiveness must be maintained given its lucrative investment and profitability opportunities.
Aerospace, maritime, aluminium & fabricated met-als, pharma & med equipment, F&B and machinery & equipment will all benefit from the strategy which is anticipated to add US$44.8 billion to Dubai’s economy by 2030.
GOVERNMENT SUPPORTM
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GOVERNMENT SUPPORT
The Department of Economic Development has a pivotal role to-gether with Dubai Export Development Corporation and the Du-bai Chamber of Commerce and Industry.
The Dubai Industrial Strategy aims to transform the UAE into a global platform for innovative industries and a destination of choice for international companies seeking and integrated and favourable environment for sustainable growth.
The strategy’s prerequisite for nationwide success is the seam-less collaboration between disparate Federal governmental de-partments and authorities including the Ministries of Labour, Public Works and Environment & Water. The UAE’s Industrial Coordination Council is developing a national strategy to boost the sector and safeguard intra-governmental cooperation.
In a further move designed to boost the UAE’s manufacturing ca-pabilities an initiative for the standardization of the Made in the UAE label was approved in 2017. Promotion of the Made in the UAE label is hoped to create global awareness and reputation about the national brand helping to raise the profile of the coun-try as a manufacturing hub for the entire Middle East.
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LOCATION & CONNECTIVITY• Dubai is a key connecting hub between the markets
of the East and West Ideally located to bridge the cru-cial time zone gap between the markets of the East and West to enable 24/7 services and connectivity.
• Easily accessible through two international airports – Dubai International (DXB) and Dubai World Central (DWC) – within a 4 hour flight of one-third of the world’s population, and within 8 hours of two-thirds.
•90 airlines operate 6,500 flights a week from DXB, to 240 destinations.
•15 passenger carriers operate an average of 153 flights weekly to more than 30 international destina-tions across 10 countries from DWC.
•DXB passenger numbers are projected to reach 103.5 million by 2020 while passenger traffic across Du-bai’s two primary airports is forecasted to rise to 200 million by 2030.
• Home to the world largest manmade port – Jebel Ali – a premier gateway for over 90 weekly services connecting more than 140 ports worldwide. Expan-sions currently underway at the Port will bring total handling capacity to 22.1 million TEU by 2018.
• With its diverse and mature consumer base, Dubai has a proven track record of being the launch-pad to test and expand operations across the wider Middle East, Africa and South Asia.
• Non-oil trade between Dubai and Africa is valued at US$34billion having amounted to US$192 billion over the 2012-2017 period.
• Non-oil trade between Dubai and India reached US$27 billion in 2017, representing 7.6 per cent of Dubai’s total non-oil foreign trade for the same year, and is projected to increase by 5% to US$30 billion by 2020.
4WHYDUBAI?
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6,500 flights a week
DUBAI A KEY HUB
$34B non-oil trade value
with Africa
240 destinations
World largest man-
made port connecting
140 worldwide
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WHY DUBAI?M
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TALENT POOL
•Dubai is an incubator for exceptional home-grown talent and a magnet for the world’s most ambitious, sophis-ticated and forward-thinking scien-tists, engineers, technologists and innovators who yearn for a rewarding, career-enhancing ecosystem to thrive, prosper and change the world.
•Dubai ranks 6th globally in a list with the most attractive cities for a global workforce according to Boston Con-sulting Group.
•The Dubai government is implement-ing talent attraction strategies de-signed to increase its intake of knowl-edge workers by 40% by 2021.
•Dubai is home to over 200 nationali-ties, bringing together one of the world’s richest and most diverse pool of languages and skills to suit any business.
•The UAE ranks 4th globally in availa-bility of skills and competencies in the talent pool and 5th worldwide in the Appeal index, which measures the extent to which a country taps into the overseas talent pool, according to the IMD World Talent Ranking.
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WHY DUBAI?
FOREIGN DIRECT INVESTMENT
• Dubai ranks among the top 10 international cities in attracting foreign investment esti-mated at US$7.4 billion in 2017, an increase of 7.1 per cent compared to 2016.
• Liberal and pro-investment policy decisions had gone a long way in setting Dubai on a path towards achieving comprehensive and sustainable development based on innova-tion and high productivity.
• Foreign direct investment has played an in-strumental role in realising these achieve-ments through its contribution to job crea-tion and technology diffusion.
• Dubai is ranked #1 in the world in terms of FDI technology transfer and #3 as loca-tion for AI & Robotics.
Top 10 international
cities
Foreigninvestment
$7.4Bin 2017
Increase7.1%
DUBAI
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5TRADE EVENTS
The event highlights
MENA’s role adds a global
aluminium production
powerhouse
Aluminium Middle East is the biggest gathering for aluminium professionals and the leading exhibition for aluminium products, technologies and invest-ments in the Middle East. Launched in 2009, the event brings together international industry front-runners including producers, manufacturers and processors of raw materials and end products made with alumin-ium components, as well as suppliers of technologies and accessories for aluminium production, processing and refinement. The event highlights the Middle East’s future role as the world’s powerhouse in aluminium production and facilitates discussions on uplifting the downstream sectors to support this phenomenal growth in upstream industries.
The event is held annually at theDubai World Trade Centre
ALUMINIUM MIDDLE EAST
Launched in
2009
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TRADE EVENTS
FUTURE MANUFACTURING & TRADE SUMMIT
The Future Manufacturing & Trade Summit is a lead-ing manufacturing and trade event and remains one of the only platforms in the Middle East for profes-sionals to gain and share industry knowledge. The forum brings together over 500 professionals from across the region to benefit from an interactive two-day summit on technological advancements, inno-vative strategies, and real-life case studies.
The event is held annually at theDubai World Trade Centre
500 professionals
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MENA’s sole summit for the
future of manufacturing
