A report on the manufacturing sector in the UAE published by Truth Economic Consultancy said that the number of industrial units reached 4,960 units at the end of 2010 compared to 3,036 factories in 2004. The increase in factories by 1,924 units marks a total increase of 63% and an average annual increase of approximately 8.53%.
The report, which is supported by Dubai Industrial City, a member of Tecom Investments, highlights the various details of the industrial sector in the UAE, its developments between 2004 and 2010. It also casts future expectations for this sector in the period from 2011-17.
The report said that the industrial sector still retains its contribution rate of around 10% in the national GDP and predicted an increase in this rate in the coming few years due to the maturity of other economic sectors, such as the construction sector. The report added that expects the movement of additional investment capital in the industrial sector, highlighting the fact that the industrial sector has witnessed some significant and stable developments recently.
Mr Abdullah Belhoul MD of Dubai Industrial Cit said that "We, at Dubai Industrial City, believe in the comprehensive nature of the industrial sector, which cannot be developed effectively and efficiently without providing all the necessary industrial requirements for the success and growth of the sector such as infrastructure, roads, labor villages, modern offices and energy, amongst many other industrial requirements."
Dubai Industrial City investors invested over AED 2 billion in the city to build their factories and their Industrial units. Dubai Industrial City has also invested AED 4 billion so far in infrastructure development including energy, water, roads, drainage and irrigation systems and telecommunication services. These services currently cover 30% of the total area of the city that is built on 55 square kilometer.
The report added that in the total capital invested in industrial units in the country between 2004 and 2010, from AED 63 billion in 2004 to about AED 110.2 billion in 2010, marking an increase of about AED 47.2 billion, with an average annual growth rate estimated at 9.77%.
This increase was also accompanied by a rise in manpower in industrial enterprises during the same period, where the number of workers increased by 175,300 workers, from 206,700 workers in 2004, to reach about 382,000 in 2010, marking an increase of 85% and an average annual growth rate estimated at 10.78%.
As for future forecasts, the report expected the total capital invested in the manufacturing sector to increase to AED 162.7 billion by the end of the fiscal year 2017, compared to AED 110.2 billion in 2010, marking an increase of about AED 52.5 billion at a rate of 48%.
