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The Rise of Manufacturing Companies in UAE: A Vibrant Economic Engine

Last Updated

October 4, 2024

manufacturing companies in uae

Ever wondered which manufacturing companies in UAE are thriving and have the most impact on UAE’s economy? Or do you want to start your own? We’ll walk you through UAE’s booming manufacturing sector, from premium aluminum to cutting-edge food production, and discover the opportunities it holds for future entrepreneurs. By the way if you are an enterpreneur and looking to setup your own company in UAE we are here to help.

Overview of Manufacturing Companies in UAE

Definition and Scope of Manufacturing Industries

The manufacturing companies in UAE are diverse and involve the transformation of goods across a wide range of sectors. These include chemicals, plastics and rubber, metals, food and beverage, construction materials, textile and apparel, automotive, and renewable energy. This definition also encompasses repairing and installing industrial equipment and subcontracting operations for third parties.

Contribution to the National GDP 

In 2023, the industrial sector’s contribution to the UAE’s economy stood at approximately Dh197 billion ($53.64 billion).In Dubai, the real manufacturing GDP demonstrated a steady and resilient growth of 0.26% year-on-year in 2022, underscoring the sector’s steady expansion. According to World Bank data, the manufacturing value added has consistently constituted about 10-12% of the UAE’s GDP in recent years, highlighting its substantial role in the economic framework.

Key Industries Driving Growth

Chemicals, Rubber, and Plastics Sector – Dubai has firmly established itself as a hub for plastic manufacturing, showcasing the sector’s importance and growth potential.

Metals Manufacturing – The UAE is recognized globally as a top aluminium producer, with the metal fabrication equipment market experiencing a robust rise. 

Food Manufacturing – Attracting substantial investments, it hosts numerous food and beverage manufacturing units, underscoring its vital role in the economy. 

Operation 300bn: A Strategic Vision for UAE Future

Let’s talk about the future now, shall we? The strategic vision for the UAE’s manufacturing sector is encapsulated in “Operation 300bn,” an ambitious 10-year strategy announced in March 2021. Led by the Ministry of Industry and Advanced Technology (MoIAT), this plan aims to increase the industrial sector’s contribution from USD 36.2 billion to USD 81.7 billion by 2031.

Focus on Key Sub-Sectors The strategy emphasizes developing key sub-sectors, such as food and beverage and pharmaceuticals, to achieve this target. This focus highlights the UAE’s commitment to diversifying and strengthening its manufacturing capabilities.

Growth Trends in Dubai Manufacturing

Post-COVID Growth Surge 

Dubai’s manufacturing sector has seen dynamic growth trends over recent years. Surprisingly, real growth in UAE manufacturing has surged compared to pre-COVID trends, with the sector’s real GDP growth reaching 8.75% in 2022, far exceeding the average rate of 2.8% observed between 2017 and 2019.

Annual Growth Rates

 However, Dubai’s real manufacturing GDP growth was more modest at 0.26% year-on-year in 2022. The annual growth rate in Dubai’s manufacturing sector has declined since 2013, averaging 1.2% between 2014 and 2022, down from the 5.8% average between 2010 and 2013.

Future Growth Projections

 Despite these fluctuations, the future looks promising, with significant growth expected across all manufacturing sub-sectors. The food and beverage sub-sector, in particular, is poised for substantial growth, with value-added projected to increase by 210% by 2031. This growth reflects the sector’s rising importance, as manufactured products comprise a crucial share of the UAE’s non-oil exports.

Current and Planned Projects 

Investment in the industrial sector remains strong, with approximately USD 9.7 billion worth of projects planned or underway. The “other manufacturing” sub-sector, which encompasses a wide range of production activities, leads in terms of investment.

Supporting SMEs 

The Emirates Development Bank (EDB) has earmarked USD 8.17 billion to support the sector’s growth, anticipating aiding around 13,500 SMEs in meeting their financing needs. This financial support underscores the strategic importance placed on the manufacturing companies in UAE within Dubai’s broader economic framework.

Leading Manufacturing Companies in UAE

Let’s take a look at one of the top manufacturers in Dubai:

manufacturing companies in uae

Emirates Global Aluminium (EGA)

Established in 2013, Emirates Global Aluminium (EGA) is a premier industrial giant in the UAE, specializing in premium aluminium. EGA’s integrated operations span bauxite mining, alumina refining, and primary aluminium smelting, catering to diverse industries like construction, transportation, packaging, and consumer electronics, reaching over 400 clients in more than 50 countries. 

Abu Dhabi Shipbuilding Company (ADSB)

Founded in 1995, Abu Dhabi Shipbuilding (ADSB) excels in designing, constructing, and maintaining naval and commercial vessels. ADSB serves both military and civilian clients with comprehensive services for warships and offshore support vessels. 

ADNOC Refining

Since 1981, ADNOC Refining has been a major player in energy, processing 4.65 million barrels of crude oil daily. They produce liquefied petroleum gas, naphtha, gasoline, jet fuel, and more. ADNOC Refining emphasizes sustainability through projects like waste heat recovery and carbon capture. 

Emirates National Oil Company Limited LLC (ENOC)

ENOC, established in 1993, is a leading energy company in the UAE. ENOC’s operations include lubricant manufacturing, fuel terminal operations, aviation fuel supply, and gas distribution. They are expanding into 60 markets across the Middle East and North Africa.

Dubai Cable Company (Ducab)

Founded in 1979, Dubai Cable Company (Ducab) manufactures copper and aluminum wire & cable solutions for energy, construction, renewables, oil & gas, and transportation industries. Ducab is known for powering iconic projects like Burj Khalifa and Dubai Metro. 

RAK Ceramics

Established in 1989, RAK Ceramics is a global leader in ceramic manufacturing. Their extensive production includes tiles, sanitaryware, and tableware, catering to over 150 countries. 

Agthia Group

Agthia Group, founded in 1978, is a leading food and beverage manufacturer in the UAE. Their portfolio includes bottled water (Al Ain, VOSS), snacks, proteins, and more, serving consumers across the GCC and beyond.

National Food Products Company (NFPC)

Established in 1971, NFPC is a prominent food and beverage company in the UAE. Their brands include Milco dairy and Oasis water, offering a wide range of products from dairy to juices. 

Julphar

Julphar, founded in 1980, is a leading pharmaceutical manufacturer in the UAE. They produce a wide range of medicines, including insulin, serving over 50 countries.

Union Cement Company

Union Cement Company, established in 1972, is a major cement producer in the UAE, specializing in various types of cement for the construction sector. 

How To Start A Manufacturing Company In Dubai

  1. Select Your Perfect Name: Your first step in setting up your manufacturing company in Dubai is to select a name that complies with the UAE’s naming conventions, and has a legal entity attached such as an FZE or LLC.
  2. Obtain Your Business Licence: Dont forget the industrial licence, which is essential for manufacturing operations. It varies slightly depending on your location within Dubai or its free zones.
  3. Apply For Visa: To operate your business, you’ll require a visa. The Green visa is particularly beneficial for investors contributing to the UAE’s economy, offering a more extended stay compared to previous residence visas. Check ICP website for further information.
  4. Open A Corporate Bank Account: Last but not least opening a corporate bank account is crucial for managing your finances, enabling you to receive payments and handle expenses efficiently within the UAE’s dynamic economic environment.

Cost of a Manufacturing Licence in Dubai

Manufacturing licenses usually start at USD 3,760 and require additional financial considerations. However, there is a way to make the process cost-effective by Incorporating your business in a UAE-free zone. As a result, you will not have to pay additional approval fees and will usually be able to use tools and premises at lower rates.

Documents Required to Open Manufacturing Companies in UAE

You’ll need to submit a detailed factory report, which includes:

  • Information on the factory layout
  • Machinery
  • Production costs
  • Funding sources

Approval from the Ministry of Health and the Ministry of Environment and Water is necessary to ensure compliance with the UAE’s health, safety, and environmental regulations.

Permitted Activities Under A Manufacturing/Industrial Licence in Dubai

It is required that companies obtain a Dubai industrial license from the Department of Economic Development (DED). These activities include importing raw materials, exporting finished goods, manufacturing, packaging, transportation, assembling, etc. You can also convert raw materials and natural resources into products with an industrial trade license in UAE.

Conclusion

Thee UAE’s manufacturing sector is a dynamic and integral part of the economy, with substantial contributions from Dubai and Abu Dhabi.  Manufacturing will continue to play a crucial role in the UAE’s economic development and diversification efforts.

FAQs

What is the manufacturing industry in the UAE?

 It involves the production of goods across various sectors, including chemicals, metals, food, and more.

What is on of the largest manufacturing companies in UAE?

 Dana Steel is among the largest manufacturing companies in UAE.

What manufacturers are in Dubai?

 Notable manufacturers in Dubai include Dana Steel, Exeed Industries, and Danube Home International.

What is the leading industry in the UAE? 

The leading industries in the UAE include oil and gas, manufacturing, and tourism.

What is UAE famous for producing? 

The UAE produces high-quality metals, chemicals, and consumer goods.

What is the main product of UAE? 

Oil and gas remain the main products of the UAE, with manufacturing gaining prominence.

What is in demand in UAE? 

Consumer electronics, automotive parts, and food products are in high demand.

Which industry is booming in Dubai?

The manufacturing and technology sectors are currently booming in Dubai.

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