The strategy will focus on six sub sectors such as aerospace, maritime and aluminum, among others…
Dubai’s industrial sector is set to see huge investments and create thousands of jobs under a new strategy launched by the UAE’s Vice President and Prime Minister and Dubai’s ruler His Highness Sheikh Mohammed bin Rashid Al Maktoum.
The Dubai Industrial Strategy aims to “elevate the emirate into a global platform for knowledge-based, sustainable and innovation-focused businesses”, a statement said.
It has identified 75 initiatives that will help generate an additional Dhs 160bn by 2030.
The strategy is based on five key objectives –
- Increase the total output and value-addition of the manufacturing sector
- Enhance the depth of knowledge and innovation
- Make Dubai a preferred manufacturing platform for global businesses
- Promote environmentally-friendly and energy-efficient manufacturing
- Make Dubai a centre for the global Islamic products market
It has also identified six priority sub-sectors: aerospace; maritime; aluminum and fabricated metals; pharmaceuticals and medical equipment; food and beverages; and machinery and equipment.
These sectors were chosen based on their future growth prospects, export potential and mid-term to long-term economic impact, a statement said.
Under the strategy, the industrial sector is expected to grow by an additional Dhs 18bn by 2030 creating 27,000 jobs with exports forecast to increase by Dhs 16bn.
Meanwhile, investment in research and development will increase by an additional Dhs 700m by 2030.
Sheikh Mohammed said: “The Dubai Industrial Strategy aims to leverage our advanced infrastructure and enabling environment to transform UAE into a global platform for innovative industries and a destination of choice for international companies seeking an integrated and favourable environment for growth and sustainability.
“Sustainable development involves activating all pillars of the economy. A conducive environment is required to achieve our targets that focus on knowledge, science, and research, which form the foundation for the development of industries.
“Nations are recognised for what they produce and offer in products and services and the value they add to the global economy.”
He added: “Today we have put in place the basic framework needed to compete globally in the industrial sector and develop national talents. We are one step closer to achieving the goal of making Dubai a homeland for innovators, a favourite place to live and work in, a global economic hub, and a preferred destination for visitors.”
Aerospace: In the aerospace sector, Dubai hopes to play a role through manufacturing spare parts for aircraft and providing maintenance and repair services. As per the strategy, Dubai will leverage its position as a global hub for aviation to increase the market added value, increase job creation and step-up the levels of research and development in this sector.
Maritime: Dubai, which already undertakes maritime maintenance and repair through its Dry Docks World and Dubai Maritime City, will expand its activities to attract more traffic to its facilities, especially larger ships and offshore structures. Dubai can also foray into manufacturing yachts and boats to meet the domestic demand.
Aluminum and fabricated metals: Dubai will raise its production capacity in metal fabrication through the development of its current base in aluminum production. This will be achieved by enhancing the capabilities of the downstream and finished goods manufacturing domains.
The downstream activities i.e. the final aluminum products industry are to further improve the global reach of domestic producers and attract players from the international auto and aerospace industry.
Pharmaceuticals: The GCC countries currently import 80 per cent of their pharmaceutical requirements. “Lucrative opportunities exist to develop this strategic sector,” the statement said.
The first phase of the strategy will focus on manufacturing cosmeceuticals (cosmetics that are claimed to have medicinal properties) – particularly given the increasing demand for halal cosmeceuticals.
The initial focus on this sector will help increase investments in R&D, infrastructure and building capacity and help step-up to the next phase of manufacturing pharmaceuticals that requires advanced technology, skilled human capital and strong R&D capabilities.
Food and beverages: With countries in the GCC region importing 70 per cent of their food needs, Dubai hopes to play a “significant role” in becoming a major hub for food products in the region.
The Dubai Industrial Strategy also aims to leverage the growing demand for halal products to enhance Dubai’s position as the capital of the Islamic economy and expand local manufacturing capabilities for producing high quality halal products.
Machinery and equipment: This sector is one of the largest industrial sub-sectors in Dubai and accounts for about 25 per cent of the industrial GDP. “Developing this sector will add significant value to the GDP – especially given Dubai’s location and reputation as a hub for machinery and equipment,” the statement said.