Business | General
Industrial investments in UAE increase to Dh72.63b in 2007
Ministry of Finance and Industry data show 3.14% rise over previous year as Abu Dhabi attracts lion's share of Dh38.92b.
- By Suzanne Fenton, Staff Reporter
- Published: 22:48 February 4, 2008
Dubai: Investments in the UAE's industrial sector hit Dh72.63 billion in 2007, an increase of 3.14 per cent over the Dh70.42 billion of 2006, according to the Ministry of Finance and Industry.
Abu Dhabi received the largest portion of these investments with Dh38.92 billion in 2007 while Dubai attracted Dh17.11 billion.
Dr. Mohammad Khalfan Bin Kharbash, Minister of State for Financial and Industrial Affairs, said that the ministry was trying to "enhance the industrial sector and to consolidate state exports of local industries and open new regional and international markets for these industries."
The industrial sector, particularly small and medium enterprises, contributed nearly 20 per cent of the UAE's GDP in 2007, according to Khalid Al Kassim, deputy director-general for planning and development in the Dubai Department of Economic Development.
Speaking at the first Dubai Industrial Investment and Partnership Forum (DIIPF) being held in Dubai, Al Kassim said: "The SMEs' role has been crucial not only for the Dubai economy but across the world and their contribution averages about 70-80 per cent of GDP."
The number of industrial firms totalled 3,852 in 2007, up from 3,567 in 2006. Dubai led the field with 1,548 firms in 2007, followed by Sharjah with 1,120. Abu Dhabi had a total of 312 industries.
Breakup
Fabricated metal and equipment industries dominated with a total of 1,042 firms but they attracted only Dh5.10 billion worth of investment. The food, beverage and tobacco sector enjoyed the majority of investment with Dh32.15 billion spread over 334 firms.
Although large corporations seem to have a monopoly in Dubai, Al Kassim believes that they are essential to paving the way for smaller enterprises.
"Most of the world's economies depend on small and medium-sized enterprises. Statistics tell us that 70-80 per cent of big countries' economies depend on smaller and medium companies.
"I don't think Dubai should divert from this trend. We need big companies to set the standards to cater for big infrastructure investments," he said.
With over 1,500 industrial establishments already in Dubai, Sa'aed Al Awadi, CEO of the Dubai Export Development Corporation, said Dubai generates more than $17 billion in domestic imports each year and the forum reflected Dubai's campaign to develop its manufacturing sector.
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