Dubai Industrial City rejected 37% of applications last year

Thirty-seven per cent of applications to set up projects at Dubai Industrial City (DIC) were rejected by officials last year because they failed to meet environmental, health, safety and quality requirements.

And 30 per cent were turned down in 2006 for the same reason, said Vice-President Rashid Al Ansari.

"No investment projects are admitted without the approval of the Dubai Centre for Industrial Standards, the body concerned with the enforcement of environmental, health, safety and quality criteria at the city," said Al Ansari.

"DIC has attracted about 450 investors and we expect total investment to reach Dh55 billion by 2015. The management has attracted companies working in six industrial sectors – machinery and equipment, transport equipment, basic metals, chemicals, food and drink and building materials.

"This is in addition to a research and development area with industrial plants, colleges of technology and universities. These establishments represent a solid base for light and medium industries and form a basic foundation for the existing and future development of the UAE and Dubai in particular," he said.

Al Ansari said the strategic position of DIC between Dubai and Abu Dhabi as well as its proximity to the new Al Maktoum International Airport had helped to attract industrial and commercial investors.

DIC consists of two sections – one area is being leased to investors and the other consists of commercial land that is being sold under the freehold system.

In addition there are service facilities such as labour residences, warehouses and supply centres.

Around 95 per cent of the land allocated for industrial projects has been leased and large sections of commercial land have been sold for Dh1.5bn. The infrastructure is being built in two phases, the first due to be completed by mid-2009 and the second by the end of 2010.

Al Ansari said four obstacles hindered the establishment of heavy industries in GCC countries: 

- The lack of a skilled labour force.

- The small consumption capacity of GCC markets compared with other parts of the Middle East and Europe.

- The lack of legislation and regulations that encourage the establishment of plants.

- Local investors' preference for investment in stock markets and real estate that generate quicker returns than long-term industrial projects.

Speeding up the development of the GCC common market, the introduction of a single GCC currency and the implementation of new laws covering firms would have a positive effect on the industrial sector.