UAE banks on manufacturing

Dubai: The manufacturing industry's direct contribution to the gross domestic product (GDP) of the UAE this year will be 12 per cent, and its indirect contribution will be 20 per cent, Sultan Bin Saeed Al Mansouri, Minister of Economy told reporters Tuesday on the sidelines of a ground-breaking ceremony for Ducab's cable manufacturing facility.

He also said a new industry law would be issued next year to stimulate the growth of the industry.

Over the next five years, the government's new strategy will be to attract increased foreign direct investment into manufacturing. The government agenda includes financial support for petrochemicals and aluminium.

"We are furthering partnerships between Abu Dhabi, Dubai and all emirates" for the growth of the manufacturing industry and the economy in general, Al Mansouri said.

He said there would be special focus on small to medium-sized startups, especially in Fujairah.

The UAE has a 347,000-strong labour workforce in the manufacturing sector, Al Mansouri said.

In 2008, nominal GDP grew 23 per cent to Dh934 billion. Abu Dhabi and Dubai made a combined contribution of 87 per cent to national GDP, according to the Ministry of Economy.

Oil dominant

A breakdown showed the oil industry remained the dominant component of GDP, accounting for about Dh345.8 billion in 2008.

It was followed by the construction industry, which was valued at nearly Dh148.4 billion, and the manufacturing sector, at around Dh113.2 billion.

The construction industry share, which enjoyed a boom in 2007 and 2008, jumped by around 26.1 per cent.

The trade and repairing services sector's share grew 18.7 per cent, electricity and water grew 17.4 per cent, manufacturing had 17.2 per cent, hotels and restaurants had 15.1 per cent, social services had 14.9 per cent while real estate had and 14.3 per cent.