UAE pumped Dh39bn into industry

The UAE pumped nearly Dh39 billion into the non-oil manufacturing sector in 2010 to maintain its position as one of the largest industrial investors in the Middle East, according to government data.

From around Dh81 billion at the end of 2009, the cumulative industrial investment in the Arab World’s second largest economy climbed to an all time high of Dh110bn at the end of 2010, showed the figures published this week in the annual industrial guide issued by the ministry of economy.

The investments covered expansion of existing projects and the establishment of new industrial ventures, raising the number of total manufacturing units in the country to 4,960, employing 382,000 at the end of 2010.

“There was a big rise in industrial investment in the UAE over the past year despite the global economic turmoil,” minister of economy Sultan bin Saeed Al Mansouri said in a foreword to the guide.

“This shows that long-term investment is the best way to face global economic and financial crises.”

A breakdown showed the factories include 405 involved in food industries with investment of nearly Dh32.9bn. There were also 290 ready-made garments factories, with a capital of around Dh977m, 655 furniture units with investment of about 1.06bn, 384 paper and printing production units with a combined capital of Dh2.28bn and 857 chemicals factories investing a total Dh16.7bn, according to the report.

Like other Gulf oil producers, the UAE has been locked in a long-term industrial drive to ease reliance on unpredictable oil export earnings, taking advantage of its abundant energy resources, cheap labour, developed infrastructure and a strategic location in the heart of a massive consumer market.By the end of 2009, the UAE and the other members of the Gulf Cooperation Council (GCC)—Saudi Arabia, Kuwait, Qatar, Bahrain and Oman—have pumped nearly $180bn into the manufacturing sectorChemicals and plastic products were the largest beneficiary of GCC industrial capital, receiving around $81.9bn.

Investments were put at nearly $18.7 billion in non-metallic mineral products, $17bn in basic mineral products, $13.5bn in manufactured metallic products, machinery and equipment, and nearly $11.3bn in food, beverage and tobacco.

Follow Emirates 24|7 on Google News.