Industrial sector becomes a driving force behind Dubai’s economy: Sheikh Hamdan

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Dubai skyline. Industrial sector in Dubai has become a driving force for economic diversification, productivity and sustainable growth as well as Dubai’s integration with global markets. Image Credit: Virendra Saklani/Gulf News .

Dubai: Industrial sector in Dubai has become a driving force for economic diversification, productivity and sustainable growth as well as Dubai’s integration with global markets, said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai.

The emirate’s efforts to create a world-leading infrastructure and investment-friendly environment have seen it emerging as a regional hub for diverse industries, especially light to medium industrial units involved in manufacturing and exporting mechanical equipment, chemicals, food and beverages, machinery and metals, His Highness said.

The Dubai Industrial Strategy 2030, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, aims to make Dubai a global base for knowledge-based, innovation-driven and sustainable industries. The strategy comprises 67 initiatives that are expected to lay the foundation for future industry in Dubai and add AED160 billion to the emirate’s gross domestic product (GDP) through to 2030.

10-year strategy

Meanwhile, a 10-year, comprehensive national industrial strategy seeks to empower and expand the UAE’s industrial sector and increase its GDP contribution from the current AED133 billion to AED300 billion by 2031. Named ‘Operation 300bn’ the strategy envisions the industrial sector as the driving force of a sustainable national economy.

Sheikh Hamdan said Dubai Industries & Exports, the agency of Dubai Economy mandated to develop industrial and export activity in the emirate, will play a pivotal role in transforming Dubai into a hub for future industries and attracting domestic and foreign investment into the industrial sector, in line with the goals of the Dubai Industrial Strategy 2030 and ‘Operation 300bn.’

Formerly known as ‘Dubai Exports,’ the agency has been supervising the implementation of the Dubai Industrial Strategy 2030, which has been instrumental in raising the manufacturing and export capabilities of the emirate. The scope of the agency has now been expanded in view of the increasing emphasis on industrialisation in Dubai and the UAE and the need to co-ordinate with various authorities on policies, initiatives and services for industrial development and export promotion.

New mandate

Sheikh Hamdan said that the new mandate is also aligned with the emirate’s strategy to support national industries and promote non-oil trade by pursuing opportunities in overseas markets for diversifying exports. As demonstrated during the pandemic, Dubai, with the help of its competitive and connected environment, is committed to helping businesses successfully navigate challenges and crises. Dubai Industries & Exports will be instrumental in supporting investors and manufacturers globally to build on this opportunity in Dubai, His Highness said.

“Dubai Industries & Exports will continue to facilitate industrial activity and exports and work collaboratively with all stakeholders to create a future-oriented regulatory framework for promoting an innovative and capable industry,” said Sami Al Qamzi, Director General of Dubai Economy.

The Dubai Industrial Strategy 2030 has developed 67 initiatives for achieving its goals in addition to identifying six priority sub-sectors: Aerospace, Maritime, Aluminum & Fabricated Metals, Pharmaceuticals & Medical Equipment, Food & Beverages, and Machinery & Equipment.

A report issued by the Business Registration & Licensing (BRL) Sector in Dubai Economy stated that 6,728 companies have been operating in the industrial sector in the emirate in the period from 1963 to 2021. There was a 94.1 per cent increase in the number of industrial firms between 2006 and 2021. The number of investors in the industrial sector reached 33,548 in 2021.

Al Quoz Fourth Industrial Zone has the largest concentration of industrial units in Dubai, followed by Dubai Investments Park 1 and Jebel Ali 1. Among the main areas in Dubai, Bur Dubai accounts for the largest share of industrial units (72%), followed by Deira (27.1%), and Hatta (0.9%)

The most prominent industrial activities in Dubai include manufacture of metal structures for buildings, blacksmith and welding workshops and furniture manufacturing.