PART THREE: PROSPECTIVE SECTORS FOR INVESTMENT

in the UAE

UAE Industrial SectorsCh 11

UAE Industrial Sectors

• Industrial : Goods-producing segment of an economy, including agriculture, construction, and manufacturing.

• Part of the economy concerned with the manufacture of goods from the raw materials supplied by primary-sector industries.

UAE Industrial Sectors

• Classification of Industry:1- Primary: Extraction of resources directly from earth: framing, mining and logging.2- Secondary: Processing products from primary industries includes all factories; refine materials, produce cement…etc3- Tertiary: provision of services include managers, training, professional certificates…4- Quaternary: Research science and technology5- Quinary Sector: This sector would include the top executives or officials in such fields as government, science, universities, nonprofit, healthcare, culture, and the media

UAE Industrial Sectors• Industrial Sectors in the UAE:The UAE government strategy focuses on developing the country's industrial and manufacturing sector, which contributes greatly to the overall economic growth, and strengthening its competitiveness globally.The Government is committed also to further strengthen local industries. The UAE Government believes that the industrial and manufacturing sector contributes to the country's prosperity and welfare

Source: Ministry of Economy

UAE Industrial Sectors• Industrial Sectors in the UAE:The policy of economic diversification and the efforts to encourage industries and manufacturing have paid strong dividends in the UAE.The UAE has recorded strong growth in the industrial and manufacturing sector with total volume of investments reaching Dh77 billion in 2008, according to the UAE Ministry of Economy Annual Industrial Report 2008. Abu Dhabi accounted for AED38.6 billion, followed by Dubai with AED16.3 billion, with other emirates representing the rest. There are 4,219 industrial units in the country, which employ over 318,000 people.

Source: Ministry of Economy

UAE Industrial Sectors• Industrial Sectors in the UAE:The sector grew by %40, with investment volume more than doubling in past years. The number of people employed in industries also grew by about %40.These including the growth in new industrial licenses and the customs exemptions provided on the import of raw materials, equipment, accessories, semi-processed or intermediate goods and packing and wrapping materials as well as the setting up of new competitive and productive industries in the fields of energy, petrochemicals and basic metal industries.

Source: Ministry of Economy

UAE Industrial Sectors• Industrial Sectors in the UAE:Partnerships with foreign enterprises and joint-ventures have allowed industrial and manufacturing companies to benefit from the most up-to-date technologies. industrial and manufacturing sector has recently diversified towards more capital intensive, high-technology products, such as electronics and machinery, exported in large part from the Free Zones, which have state-of-the-art production facilities and trade infrastructure

Source: Ministry of Economy

UAE Industrial Sectors• Industrial Sectors in the UAE:The governments of each emirate have invested huge financial resources to diversify their economies. Initially, the UAE's industrial and manufacturing sector developed in oil- and gas-intensive industries, such as petrochemicals, fertilizers, cement, and aluminum.Subsequently, the sector has rapidly evolved to more diversified products such as electronics and light machinery, exported in large part from the Free Zones.

Source: Ministry of Economy

UAE Industrial Sectors• Industrial Sectors in the UAE: Abu DhabiAbu Dhabi developed its new clusters the Industrial City of Abu Dhabi I, II, III and Al Ain Industrial City I, II, which were managed by the Higher Corporation for Specialized Economic Zones (ZonesCorp) and known as industrial zones of special economic nature, as well as the Al Ruwais Industrial Complex, which hosts a number of petrochemical industries. The Mussafah Industrial Area covers 14 km² and is made up of six zones based on industry sector, including Automobiles, Machineries & Spare Parts, Food, Textile & Soft drink manufacturing, Engineering works, Wood and Herbal Industries, Chemical, Plastic & Petrochemical Industries, Building & Construction related materials and Advanced Technology Industries.

Source: Ministry of Economy

UAE Industrial Sectors• Industrial Sectors in the UAE:The Abu Dhabi government intends to build the Khalifa Port and Industrial Zone (KPIZ), which will also comprise special economic zones and free zones, and will be developed in phases which are projected to be complete by 2015.

Source: Ministry of Economy

UAE Industrial Sectors• Industrial Sectors in the UAE: DubaiDubai is developing Dubai Industrial City, a new manufacturing zone that will help the region's largest trading hub to diversify its economy still further. Dubai Industrial City was launched as a landmark project and a business district to catalyze and support the development of the manufacturing sector within the emirate. The city has been conceptualized and planned in great detail as a state-of-the-art industrial infrastructure. It is spread across 560 million square feet of land with specific emphasis on medium manufacturing sectors (machinery and mechanical equipment), transport equipment and parts, base metal, chemicals, food and beverage and mineral products.

Source: Ministry of Economy

UAE Industrial Sectors• Industrial Sectors in the UAE:Other EmiratesThe other emirates are also rapidly developing their own industrial cities to attract investment in this booming sector. Ras Al Khaimah Free Zone and RAK Investment Authority are examples.

Source: Ministry of Economy

UAE Industrial Sectors• Types of Industries in the UAE:- Aluminum- Aluminum is one of the most UAE's most important

industries. Dubai Aluminum Company (DUBAL) was established in 1979, and owns and operates one of the world's largest aluminum smelters. It represents one of the main global aluminum producers, and contributes substantially to the UAE economy

Source: Ministry of Economy

UAE Industrial Sectors• Types of Industries in the UAE:- Cable Industry- The main producer of electric cables in the Middle

East, producing the best quality electrical cables along with the best customer service. It supplies a range of high quality power cables and accessories across the world

Source: Ministry of Economy

UAE Industrial Sectors• Types of Industries in the UAE:- Steel and Alloys industry- The UAE steel plants contribute greatly to the

economy and are counted among the major heavy industries of the UAE. One of the largest UAE steel plants is Emirates Steel Industries (ESI), which utilises the latest rolling mill technology to produce reinforcing bars for the construction industry. The plant manufactures high yield deformed steel bars for concrete reinforcement in sizes ranging from 10 mm to 32 mm.

Source: Ministry of Economy

UAE Industrial Sectors• Types of Industries in the UAE:- Cement Industry- The cement industry is one of the oldest manufacturing

industries in the UAE. The first factory was the Al Ittihad Cement Company of Ras Al-Khaimah, which started commercial production in 1975. This was followed by the construction of several other factories in Al Ain, Sharjah, Dubai, Fujairah, Ajman and Umm al-Quwain. The emirate of Ras Al Khaimah is the largest cement producer in UAE. Union cement, RAK cement and Hazar cement are the most important cement producers of United Arab Emirates.

Source: Ministry of Economy

UAE Industrial Sectors• Types of Industries in the UAE:- Small and Medium Enterprises (SMEs) in the UAE- The UAE government has been focusing on

identifying a number of ways to support SMEs in order to boost economic growth and employment in line with the Country Vision 2021.

- Currently the Ministry of Economy is drafting a new SMEs Law to regulate investment in this sector.

Source: Ministry of Economy

UAE Industrial Sectors• Types of Industries in the UAE:- Small and Medium Enterprises (SMEs) in the UAE1. Khalifa Fund for Enterprises Development2. Mohammed bin Rashid Establishment for Young

Business Leaders.3. Sheikh Saud bin Saqr al Qasimi's Fund for SMEs

Source: Ministry of Economy