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The industrial sector is the fourth largest in Dubai’s economy

The industrial sector is the fourth largest in Dubai’s economy



Dubai set for an industrial boom

The industrial sector contributes around 9.5 per cent to the country’s GDP, which is equivalent to 11 per cent of the non-oil GDP, with a growth rate of 4.5 per cent in the last five years

December 2019

Dubai’s industrial sector is set to grow, as the emirate is working on a well-diversified strategy to promote the sector with a key focus on knowledge-based, sustainable and innovative industries.

As per the data from Dubai Exports, the emirate’s industrial exports jumped 31 per cent in the first-quarter of 2019 to Dh42 billion ($11.42 billion), as compared to Dh32 billion ($8.72 billion) for the same period last year. India was the top export destination for industrial goods from the emirate, accounting for 11 per cent followed by eight per cent each to Turkey and Oman, five per cent to China, and four per cent to Japan in Q1 this year.

Mohammed Ali Al Kamali, deputy CEO of Dubai Exports, said that the emirate is targeting six industrial sub-sectors of aerospace; maritime; pharmaceutical and medical equipment; aluminium and fabricated metals; fast moving consumable goods; and machinery and equipment to expand the sector’s contribution to the GDP in line with the Dubai Industrial Strategy 2030.

The top industrial products exports in the first-quarter were pearls, precious stones, and metals, accounting for 34.1 per cent of the total followed by mineral fuels and mineral oils at 17.2 per cent, aluminum at 12.7 per cent and plastics at three per cent and electrical machinery and equipment at 2.7 per cent.

Data revealed that content of high and medium-high technology products in exports from Dubai has been consistently on the rise, growing from 7.2 per cent in 2017 to 11.3 per cent in 2018 and 12 per cent in Q1 2019.

The industrial sector is the fourth largest in Dubai’s economy with 9.2 per cent contribution to its GDP at a value of Dh36.8 billion in 2018. Metals was the highest contributor with 26 per cent followed by 15 per cent machinery and transport, 13 per cent F&B, 11 per cent each for rubber and mineral products, chemicals and pharmaceuticals and wood and paper products.

“As part of Dubai Industrial Strategy 2030, the vision is to become a global platform for knowledge-based sustainable and innovative industries. We are also promoting environmentally-friendly and energy efficient manufacturing,” Al Kamali said while addressing the Future Manufacturing and Trade Summit 2019.

Saeed Al Awadi, CEO of Dubai Exports, said that Dubai and the UAE seek to help the sector grow further through advanced skills, sustainable manufacturing and export developments.

Osama Amir Fadhel, acting assistant undersecretary of industrial affairs at the UAE’s Ministry of Energy and Industry, said the industrial sector contributes around 9.5 per cent to the country’s GDP, which is equivalent to 11 per cent of the non-oil GDP, with a growth rate of 4.5 per cent in the last five years. It also provides more than 460,000 job opportunities across the country.

“Almost half of the sector’s contribution to GDP comes from industrial capacities that employ high or medium-level technologies and skills. All these indicators reflect the strength and flexibility of this sector,” Fadhel said at the summit.

 

ECONOMY GREW 2.1PC IN H1

Meanwhile, Dubai’s economy grew 2.1 per cent year-on-year (YoY) in the first half of 2019. The emirate’s gross domestic product (GDP) at constant prices reached Dh208.2 billion in the first six months of 2019, according to data published by the Dubai Statistics Centre (DSC).

Arif Al Muhairi, executive director of the DSC, said that the flexibility of Dubai’s economy and its business structure helped the emirate maintain its economic growth, despite the slowdown of the regional and global economy. He also said that the wholesale and retail sector supported the overall growth of the local economy thanks to Dubai’s strong infrastructure as it helped boost its re-export business and trade with countries both in the region and around the world.

Al Muhairi further said that the trade sector posted a real growth of 3.3 per cent backed by higher external trade, and higher re-exports which grew by 3 per cent to reach Dh210 billion in the first half of 2019.

Manufacturing activity, which contributed 9.5 per cent to Dubai’s GDP, grew by 0.3 per cent in the first half of 2019, compared to the same period in 2018.

Adding to that, mining, construction, professional activities, administrative services, public administration, education, health, arts, entertainment, and other service activities and household activities grew 2 per cent YoY, with a combined contribution of 23 per cent to Dubai’s GDP.




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