His Highness Sheikh Mohammed Bin Rashid Al Maktoum Launches Dubai Industrial Strategy
His Highness Sheikh Mohammed Bin Rashid Al Maktoum Launches Dubai Industrial Strategy26 يونيو, 2016
- Strategy aims to leverage our advanced infrastructure and enabling environment to transform Dubai into a global platform for industries
- We have put in place the basic framework needed to compete globally in the industrial sector and develop national talents
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, today launched the Dubai Industrial Strategy, aiming to elevate Dubai into a global platform for knowledge-based, sustainable and innovation-focused businesses.
The strategy seeks to develop and implement long-term industrial policies to enhance the competitiveness and sustainability of the industrial sector in Dubai and across its free zones. It will identify target industrial sectors and focus on strengthening industrial integration - connecting the target sector with educational and research institutions to stimulate innovation and creativity with a view to developing strategic industries.
In addition, the Dubai Industrial Strategy aims to shape an attractive environment for these strategic industries and establish an umbrella body for the governance of the industry sector.
Making the announcement, His Highness reiterated that the UAE is on track to achieving its objective of integrating its economic sectors and optimising industrial capacity to supplement the GDP and other revenue streams in the coming years.
His Highness Sheikh Mohammed bin Rashid Al Maktoum said: “The Dubai Industrial Strategy aims to leverage our advanced infrastructure and enabling environment to transform Dubai into a global platform for industries and a destination of choice for international companies seeking an integrated and favourable environment for growth and sustainability.”
He added: “With the launch of the Dubai Industrial Strategy, we are taking one more step towards the future. We have laid down a strong foundation that blends our strategic location and infrastructure with our ambition, confidence and experience. Today we have put in place the basic framework needed to compete globally in the industrial sector and develop national talent. 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.”
His Highness Sheikh Mohammed bin Rashid Al Maktoum further pointed out: “Sustainable development involves activating all pillars of the economy. To achieve this, it is important to create a conducive environment that focuses on knowledge, science and research.
“In today’s context, a sound economy is a diverse and integrated economy led by the industry and manufacturing sectors and built on pillars of innovation and creativity. Nations are recognised for what they produce and offer in products and services and the value they add to the global economy.”
The Dubai Industrial Strategy has been jointly developed by a team that comprised industry experts from the Executive Council of Dubai, Jebel Ali Free Zone Authority (Jafza) and the Dubai Industrial Park in Dubai Wholesale City.
Five Objectives of Phase One:
- Increasing Total Output and Value-addition of Manufacturing Sector
- Enhancing Depth of Knowledge and Innovation
- Making Dubai Preferred Manufacturing Platform for Global Businesses
- Promoting Environmentally-friendly and Energy-efficient Manufacturing Systems
- Making Dubai Centre for Global Islamic Products Market
The first phase of the Dubai Industrial Strategy is based on five key objectives that will serve as the foundation for Dubai's industrial future. Phase one aims to 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 and make Dubai a centre for the global Islamic products market.
His Excellency Abdullah Al Shaibani, Secretary General of the Executive Council of Dubai, said: “The launch of Dubai Industrial Strategy is in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to shape Dubai into a global economic powerhouse. This launch today is a step towards a new era in which Dubai will contend to become a competing leading destination in the global industry and manufacturing horizon.”
He added: “Industry and manufacturing play a strategic role in the future of our country. We aim to lead in developing the industrial sector through conceptualising and implementing innovative projects that assure sustainable development.”
Aisha Miran, Assistant Secretary General, Strategy Management and Governance Sector, The Executive Council of Dubai said: “The purpose of the strategy is to expand the production base and economic structure of Dubai to enhance its position and competitiveness. This comes from our priority to keep up with developments in industry and manufacturing globally, identify best scenarios and implement them within the context of our economy in line with the vision of our leadership.”
The Dubai Industrial Strategy has identified six priority sub-sectors: Food and Beverages, Aerospace, Fabricated Metals, Maritime Manufacturing & Maintenance Sector, Machinery and Equipment, and Pharmaceuticals. These sub-sectors were chosen based on their importance to the Dubai Plan 2021, as well as their future growth prospects, export potential and mid-term to long-term economic impact.
Food and Beverages
The global F&B market was valued at approximately US$4 trillion in 2014. Dubai’s exports in the same year were worth AED47.7 billion (US$13 billion). With countries in the GCC region importing 70% of their food needs and registering an annual growth of more than 3%, Dubai is well poised to play a significant role in becoming a major hub for food products in the region. Dubai’s infrastructure, airports and ports, and logistical capabilities serve as drivers for the success of the F&B sector as it relies heavily on ease of access and speed of delivering raw materials and products.
The Dubai Industrial Strategy also aims to leverage the growing demand for halal products to enhance Dubai’s position as the Capital of Islamic Economy and expand local manufacturing capabilities for producing high quality halal products.
In the aerospace sector, Dubai can play a pivotal 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 (MVA) from 2% to 4% in 2030, increase job creation and step-up the levels of research and development in this sector.
The crucially important aviation sector that supports the movement of passengers through Dubai has grown substantially over the years to reach 70 million in 2014. The Dubai-based Emirates Airlines alone currently owns a fleet of 239 aircraft in service and a further 269 that have been ordered.
Dubai is home to one of the largest aluminum smelters worldwide. The UAE is among the top global exporters of aluminum - it exports 88% of the 2.4 million tons it produces annually. According to the Dubai Industrial Strategy, the emirate has the opportunity to raise its production capacity in metal fabrication with the development of its current base in aluminum production. This will be achieved through enhancing the capabilities of the downstream and finished goods manufacturing domains to increase the overall added value and maximize benefits from the existing smelters. Dubai aims to increase the market added value of this sector from 3% to 5% in 2030. The downstream activities i.e. the final aluminum products industry will further enhance the global reach of domestic producers and attract players from the international auto and aerospace industry.
Maritime Manufacturing & Maintenance Sector
Dubai is considered a front-runner in the field of maritime maintenance and repair through its Dry Docks World and Dubai Maritime City. The emirate also enjoys a unique global location as a center of trade and maritime services - comprising Jebel Ali Port, the largest seaport in the Middle East with a capacity of 21 million containers. Dubai is in prime position to 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. The industrial added value of this sector is expected to rise from 3% to 4% in 2030.
Machinery and Equipment
The Machinery and Equipment sector is one of the largest industrial sub-sectors in Dubai and accounts for about 3% of the GDP due to the high domestic and regional demand for construction machinery and equipment. The global market for Machinery and Equipment is estimated at US$3.5 trillion. Developing this sector will add significant value to the GDP - given Dubai’s location and reputation as a hub for machinery and equipment in the region and beyond.
The Dubai Industrial Strategy has chosen the pharmaceutical sub-sector for its vital importance and added value. With low local and regional production capacities, the countries in the GCC region currently import 80% of their pharmaceutical requirements. Lucrative opportunities exist to develop this strategic sector. The first phase of the strategy will focus on manufacturing halal cosmeceuticals (cosmetics that have medicinal properties) to cater to the growing demand for such products. The initial focus on this sector will help increase investments in R&D, infrastructure and building capacity and help migrate to the next phase of manufacturing pharmaceuticals that requires advanced technology, skilled human capital and strong R&D capabilities.
The Dubai Industrial Strategy has identified 11 main initiatives to transform Dubai into a global platform for industries based on knowledge, innovation and sustainability. The strategy is projected to help generate an additional AED165 billion (US$45 billion) with the required expenditure of the Dubai government estimated at between AED36.7 billion and AED55 billion by 2030.
Among the most significant of these initiatives will be the Dubai Industrial Aerospace Cluster and Dubai Aerospace Industrial Exhibition, the expansion of Dubai’s maritime facilities, the launch of a cosmeceuticals institute, and the ‘Made in Dubai’ brand.
Sultan Ahmed bin Sulayem, Group Chairman and Chief Executive Officer of DP World and Chairman of Ports, Customs and Free Zone Corporation asserted that the launch of Dubai Industrial Strategy, which articulates the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, is aligned with the UAE’s roadmap for sustainable progress in the post-oil era and reinforces the nation’s efforts to diversify the national economic structure.
He said: “The launch of Dubai Wholesale City, the world’s largest city for wholesale trade extending over 550 million square feet at a cost of AED30 billion, underpins Dubai’s clear economic vision for the future through the creation of dynamic new sectors and the reformatting of existing sectors on a global scale.”
He said the UAE’s industrial landscape has developed significantly over the years owing to the conscious effort towards increasing the sector’s growth. This growth has been achieved through putting in place a strategic plan to expand and attract foreign and domestic investments by setting up industrial zones across the UAE that provide world-class infrastructure and operational facilities. With the launch of new industries, the contribution of the industrial sector is set to surge by up to 25% by 2025, compared with the current 14%.
Sultan bin Sulayem pointed out that Dubai is already regarded as a major trading centre on the international map and under the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, the emirate is poised to emerge as a global industrial centre and city of integrated logistics. Dubai will offer all the services that investors seek to push into new and emerging markets of the world.
He stressed that the Dubai Industrial Strategy includes a range of investment incentives to attract further industrial investments to the Jebel Ali Free Zone (Jafza). These incentives will encourage investors to create production lines locally and use Jafza as a springboard for conveying their products to diverse countries around the world.
Sultan bin Sulayem highlighted that the strategy also comprises a core developmental aspect - including Emiratis in the nation’s development process and empowering them with knowledge and skills through engaging them in various industrial projects.
Dr Amina Al Rustamani, Group CEO, Tecom Group, developer of specialised parks including Dubai Industrial Park in Dubai Wholesale City, said: “His Highness Sheikh Mohammed bin Rashid Al Maktoum has launched the Dubai Industrial Strategy in line with the economic vision of Dubai. This strategy forms a cornerstone for the development of an industry sector based on innovation, knowledge and creativity.”
She added: “We are keen on increasing the contribution of the industrial sector to the Dubai’s GDP as well as that of the UAE. The development of this sector is a main driver for the economy with its high potential and capability. We are committed to implementing this strategy on the ground and benefiting from its potential to significantly build capacities and provide jobs to our national workforce.”
Abdullah Belhoul, CEO, Dubai Wholesale City, which includes the Dubai Industrial Park, said: “The launch of the Dubai Industrial Strategy articulates the vision of our leadership to prepare for a post-oil future and establish a diversified knowledge-based economy. Dubai Industrial Park will play a pivotal role in this transition as a leading destination for industry and logistics - boasting more than 700 local, regional and global companies. The industrial park also features a halal manufacturing zone that will help fulfil the objectives of this strategy.
“In the next phase of implementation of the strategy, Dubai Industrial Park will collaborate with all the partners on realising initiatives and action plans to accomplish these strategic goals. We will work to translate the leadership vision into reality and support Dubai’s transition into a global platform for industries based on knowledge and innovation.”
Ibrahim Mohamed Aljanahi, Deputy CEO and Chief Commercial Officer of Jafza, said: “The Dubai Industrial Strategy has outlined policies to ensure a steady pace of growth in all sectors and has assigned specific tasks to every economic institution - whether free zones or industrial zones. These promising policies will stimulate the industrial sector and attract more foreign investment to the country.”
Aljanahi pointed out that the strategy will foster innovation and provide customised solutions in addition to creating a common language for stakeholders. Its implementation will further drive the growth of the industrial sector and open new horizons to introduce and consolidate the ‘Made in Dubai’ brand initiative. This branding would build the emirate’s credibility in manufacturing products that conform to the highest international standards.
Aljanahi stressed that Jafza is developing a marketing plan tailored to the Dubai Industrial Strategy to attract more global industrial companies to the free zone and provide incentives to successful businesses based within the zone.
He said: “Jebel Ali Free Zone has more than 765 industrial companies from 73 countries. These companies employ nearly 73,000 employees and operate over an area of 14 million square meters. We intend to increase these numbers in the coming years and contribute to the quantum leap that the national economy will achieve through implementing this strategy.”
According to Dubai Industrial Strategy, the industrial sector is expected to grow to AED66 billion (US$18 billion) by 2030 creating 27,000 jobs and increasing the volume of exports to AED16 billion. Meanwhile, investment in research and development will increase by 17% - close to AED700 million - by 2030.
The contribution of the industrial sector to the GDP stood at 14% in 2014. The sector’s resilience and competency led to its continued growth over the past years - even during the global financial crisis.
The launch of Dubai Industrial Strategy is in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to shape Dubai into a global economic powerhouse. This launch today is a step towards a new era in which Dubai will contend to become a competing leading destination in the global industry and manufacturing horizon.