Dubai, for years, had enjoyed great economic development to become one of the popular cities in terms of doing business and attracting the best professionals in the industry; and then came a period which showed slow economic progress. This led many to believe that the golden period of Dubai has come to a halt and marked the breakdown of the overall economy. But now it seems that it was only a passing phase. UAE’s Vice President and Prime Minister and also the ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, has recently launched the 2030 Dubai Industrial Strategy.
(Pic source: www.venturesonsite.com)
What is it all about?
You may have already heard the news about it but do you know what it is all about? In brief, the Dubai Industrial Strategy is aimed at making the city a self-sufficient one so that it can become a land that produces more and depends less on imports. This will happen with the help of innovation and knowledge-based businesses. The result of this is, it will – (a) lead to higher investments and (b) create thousands of jobs in the city.
The strategy can be defined broadly in five key objectives, which will lay the foundation of turning Dubai into a global platform for industrial development –
- To increase the total output and value-addition of the manufacturing sector.
- Focus on knowledge, science and research.
- Make the city a favourite place to live, work and do business. In short, a global economic hub.
- To strive towards sustainable development and promote environment-friendly manufacturing.
- Make Dubai the centre for global Islamic products market.
Who’s going to benefit from Dubai Industrial Strategy 2030?
If looked from a broader point of view, then it would be safe to say that all the sectors are going to benefit from this. As reported in the news, there is an expectation that the industrial sector will grow by Dh18 billion by 2030, with exports forecast to rise by Dh16 billion. This will help in creating 27,000 jobs. The focus is also in the research and development (R&D) industry, which will increase by Dh700 million by 2030.
The Dubai Industrial Strategy has focussed on six priority sub-sectors and if you are associated in one of these sectors, then luck is surely on your side. It has been made clear that these sub-sectors will receive greater importance in the coming years.
Let us look at these sub-sectors in details:
- Aerospace – Already a prominent hub for the aviation sector, with some of the prominent Dubai-based airlines like Emirates, the city is hoping to make its mark by becoming a global hub for the industry. It is expected that it will play a pivotal role in the global aerospace industry by manufacturing spare parts, and providing maintenance and repair services.
- Maritime industry – Dubai enjoys a very good coastline and has Middle East’s largest seaport, Jebel Ali Port. It hopes to strengthen its position further to be a prime location for maritime industry in terms of maintenance and manufacturing. There are plans to attract more traffic in the future with better infrastructure to handle it.
- Aluminium and fabricated metals – Dubai is among the top global exporters of aluminium and also home to one of the largest smelters worldwide. It exports more than 80% of the total aluminium it produces. Strategies are being laid down to increase the production of aluminium and fabricated metals, and improve the efficiency of the smelters as well. There are suggestions for giving global exposure to the local products and further enhance their reach in the international market.
- Pharmaceuticals – As of now, Dubai is not much of a player in the pharmaceutical industry and hence it is a focus on the Dubai Industrial Strategy. Currently, it imports 80% of the pharmaceutical products and it sees a bright future in the area of pharmaceutical cosmetics (aka cosmeceuticals). The market for halal cosmeceuticals might be a niche market, but it is growing in proportions. It is expected that this will be a step towards developing the pharmaceutical R&D industry.
- Food and beverages – This is an important industry that will receive importance over the years as the GCC imports more than half of their total food requirements. Though it is difficult for Dubai to become self-sufficient completely in terms of food and beverages, it can nonetheless play an important part in the global hub for food products. One of those areas where it has strength is in the market for Halal products. Also, it can play a pivotal role in the economy for processed food, having the sufficient logistic infrastructure for acquiring raw materials with easy access and speedy delivery.
- Machinery and equipment – One of the largest industrial sub-sectors, this account to nearly a quarter of the industrial GDP. The place has a reputation as a prominent hub for machinery and equipment. The strategy aims to keep it that way through innovation and improved technology.
It can be clearly seen from the objectives and focus of the Dubai Industrial Strategy 2030 that in the coming years there will be a quantum leap in the economy. This is surely great news for those who are looking to do business in Dubai and for job seekers too.