Manufacturing sector on the uprise

 By: Zainab Mansoor

As Dubai rebounds from a global financial crisis which engulfed virtually every industry, the manufacturing sector has begun to experience recovery. It contributed heavily to Gross Domestic Product, at AED 38.72 billion (US$10 billion), after wholesale, trade, retail and repair. Ranking fourth, it contributed 13.2 percent to GDP, an indication that the industry is operating reasonably well. The manufacturing GDP growth posted 11 percent in 2010, compared to 6.2 percent in 2009. The annual industrial production was estimated at AED 200 billion (US$54 billion), with exports estimated at AED 68 billion (US$18.50 billion), marking 34 percent of the total production.
"Dubai is the ideal location providing world-class trading platforms for a wide array of commodities. The Dubai government realises the importance of diversifying sources of income and increasing the participation of the industrial and the export sectors in increasing the country's GDP," said engineer Saed Al Awadi, Chief Executive Officer, Dubai Exports.

 Drake and Scull International, the Dubai based MEP contractor, which also has civil engineering, infrastructure and utilities servicing divisions saw after tax earnings of AED 55 million (US$14.96 million), noting an increase of 22 percent from AED 44 million (US$11.97 million) posted last year. Drake and Scull has been aggressively expanding in the Gulf region, bagging a $26 million contract in Qatar, while its subsidiary Drake & Scull International Abu Dhabi has been awarded a $49 million contract by the Abu Dhabi government.
"UAE is the second largest economy (after Saudi Arabia) in the Gulf Cooperation Council (GCC) region contributing to 28 percent of its total GDP. The GDP of UAE for FY 2010-11 was about $301.8 billion and is expected to grow at a compound annual growth rate (CAGR) of 5.4 percent by2015," said Sabarinath S, Industry Manager, Metals and Minerals Practice, Middle East, North Africa and South Asia, Frost & Sullivan.
"Metalworking industry in UAE is expected to progress on a positive growth track owing to large scale investments in manufacturing (general engineering & metals), construction, oil & gas and nuclear energy projects. The total FDI received by UAE in 2009 was $13 billion out of which 95 percent was allotted for the manufacturing sector. We expect about 1100 –1200 manufacturing units to be involved in the metalworking sector in the UAE."

Construction industry seems promising
A construction outlook report given by Dubai Construction Industry shows an encouraging average annual growth rate of around 20 percent from 2010 to 2013, with 3,500 buildings, worth more than AED 25 billion (US$6.8 billion) during 2010. The value of construction costs for completed buildings in Dubai was around AED 25.48 billion (US$6.9 million) in the first three quarters of 2010, an average increase of 24 percent from 2009. Experts witnessing the rebound suggest that the industry is set to pick pace again. In view of this growth, financial institutions and banks will capitalise on the prospects and help the industry in terms of financing and liquidity.
According to the recent report "UAE Construction Industry Outlook to 2012" issued by Market Research, the UAE construction industry is expected to grow at a compound annual growth rate (CAGR) of around 7 percent during 2010-2013. Majority of the investments are mainly focused on the development of infrastructure for hospitality, retail, real estate and the healthcare industry. It was also indicated that despite the overall global slowdown, the UAE will continue to develop several projects in tourism, housing, industrial and commercAir Jordan IV 4 Retro Snake Skin