The UAE’s manufacturing sector has been among the largest non-oil contributors to Dubai’s GDP since 2009, owing to increased Government support and funding, it has been revealed.

According to the Dubai Manufacturing Sector Snapshot report published by Dubai Exports, an agency of the Department of Economic Development (DED), Government of Dubai, the manufacturing sector is ranked as the fourth highest contributor to the GDP.

While the manufacturing sector accounts for 13.2 per cent of the GDP, with an earnings of 38.72 billion dirhams, the wholesale trade, retail & repair; transport/storage/communication; and real estate & business activities contribute 30 per cent (89 billion dirhams), 14 per cent (41.54 billion dirhams), and 14 per cent (40.29 billion dirhams), respectively.

The sector also employs eight per cent of Dubai’s total workforce, proportional to its total contribution to GDP — an indication that the sector functions at relatively reasonable levels of productivity.

In addition, based on constant levels of pricing, the manufacturing sector has experienced an average growth of eight per cent per annum between 2007 and 2010, despite a sharp decline in the curve between 2008 and 2009.

In 2010, the manufacturing sector posted a growth of 11 per cent, compared with 6.2 per cent in 2009. Currently, Dubai’s annual industrial production is estimated at approximately 200 billion dirhams, with total exports of 68 billion dirhams accounting for 34 per cent of the total production.

Export of gold products constituted 60 per cent of the total export value. The growth in the value of direct exports correlated with the growth in manufacturing GDP, indicating that exports sustained industrial growth during the financial crisis.

In 2010, Dubai’s external trade activity exhibited a recovery, with an increase in direct and free zone exports.

Direct exports in 2010 amounted to 68 billion dirhams, a 24 per cent increase from 52 billion dirhams in 2009, while free zone exports were valued at 143 billion dirhams, compared with 112 billion dirhams in 2009, a jump of 28 per cent.

“Dubai is the ideal location providing a world-class trading platform for a wide array of commodities. This manufacturing report’s findings show a growing export market with significant opportunities for Dubai manufacturers. The Dubai Government realises the importance of diversifying the sources of income and increasing the participation of the industrial and export sectors in increasing the country’s GDP,” said Engineer Saed Al Awadi, Chief Executive Officer, Dubai Exports.

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