UAE industrial enterprises increase 39% - Emirates24|7

UAE industrial enterprises increase 39%

(CRAIG SCARR)

The past five years have seen a large increase in the number of companies involved in the UAE's industrial sector and the level of investment, according to the Department of Industrial Development's 2008 report.

And new, modern plants with high levels of productivity and an emphasis on quality are competing with foreign rivals in local and international markets in the energy, petrochemical and metal sectors.

"The report proves that the industrial sector has achieved high rates of growth, which has led to the consolidation of economic performance at the national level," said Minister of Economy Sultan bin Saeed Al Mansouri.

The number of industrial enterprises rose from 3,036 in 2004 to 4,219 last year, an increase of 39 per cent. The 2008 figure represents a 9.5 per cent increase on the previous year's total of 3,852.

Investment in the sector rose from Dh62 billion in 2004 to Dh77bn in 2008, an increase of 22.3 per cent. Investment rose by six per cent from Dh72bn in 2007.

Total UAE national investment reached Dh65bn, accounting for 84.6 per cent of total industrial investment. Investment from the GCC totalled Dh3.149bn (4.09 per cent) and investment from other countries reached Dh8.7bn (11.32 per cent). The average investment per company in 2008 was Dh18.3 million. At the end of 2008 the number of institutions fully owned by UAE nationals totalled 1,520 (36 per cent) and institutions owned by GCC nationals amounted to 118 (2.8 per cent). A total of 71 (1.68 per cent) were owned by UAE and GCC nationals, 2,452 (85.12 per cent) were owned by UAE nationals and foreigners and 58 (1.37 per cent) were owned by UAE and GCC nationals and foreigners.

The number of industrial institutions with less than Dh1m of investment was 2,419 (57.4 per cent). Institutions with investment of Dh1m to Dh10m totalled 1266 (30 per cent). Institutions that had invested between Dh10m and Dh50m totalled 385 (9.1 per cent) and institutions investing more than Dh50m totalled 149 (3.5 per cent).

The number of institutions with fewer than 10 workers was 435 (10.3 per cent). Institutions with 10 to 49 employees totalled 2,438 (57.8 per cent), institutions with 50 to 99 workers totalled 631 (15 per cent) and institutions with more than 100 workers numbered 715 (16.9 per cent).

In 2008, the value of production costs was Dh124,777m. The value of net profits was Dh15,903m and value added was Dh75,476m (60 per cent). During the comparison period (2004/2008), the number of workers rose from 231,275 to 317,841, an increase of 37.4 per cent.

By the end of 2008, the number of UAE national workers was 5,228 (1.64 per cent), GCC national workers totalled 1,883 (0.59 per cent) and foreigners 310,730 (97.7 per cent). The average number of workers in each institution was 75.

During 2008, the number of workers rose by 29,661 (10.29). The average productivity of each worker was Dh439,000 per annum.

The value of annual fees was Dh11,751m, an average of Dh37,000 per worker.

The report identified nine sectors of industrial activities in the country:

1. Foods, drinks and tobacco industry sector: The number of institutions in this sector until 2008 was 359, which accounts for 8.51 per cent of the total establishments, an increase of 25 compared to 2007. These institutions have an investment of Dh32,178m (41.82 per cent), with an average of Dh89.6m per institution and an increase of Dh25m compared to 2007. They have 30,412 workers (9.57 per cent), with an average of 85 workers per institution, an increase of 1,282 workers compared to 2007.

2. Textile, clothes and leather industry sector: The number of institutions in this sector until 2008 was 277, which accounts for 6.57 per cent of the total establishments and an increase of 10 institutions compared to 2007. They have investments of Dh982m (1.27 per cent), with an average of Dh3.5m per institution and an increase of Dh22m compared to 2007. They have 31,823 workers (10.01 per cent), with an average of 115 employees per institution and an increase of 109 workers compared to 2007.

3. Wood and furniture industry sector: The number of institutions in this sector until 2008 was 456, accounting for 12.94 per cent of the total institutions and an increase of 57 establishments compared to 2007. They have investments of Dh873m (1.13 per cent), with an average of Dh1.6m per institution and increase of Dh51m compared to 2007. They have 29,861 workers (9.39 per cent), with an average of 55 employees per institution, increase of 2,949 workers compared to 2007.

4. Paper, printing and publishing industry sector: The number of institutions in this sector until 2008 was 317, accounting for 7.51 per cent of the total institutions and an increase of 23 compared to 2007. They have investments of Dh2,037m (2.64 per cent), with an average of Dh6.4m per institution and increase of Dh211m compared to 2007. They have 18,208 employees (5.73 per cent), an average of 57 workers per institution and increase of 893 workers compared to 2007.

5. Chemicals industry sector: The number of institutions in this sector until 2008 was 734, accounting for 17.4 per cent of the total institutions and an increase of 55 compared to 2007. They have investments of Dh15,771m (20.48 per cent), with an average of Dh21.5m per institution and increase of Dh333m compared to 2007. They have 38,395 workers (12.08 per cent), an average of 52 employees per institution and increase of 1,578 workers compared to 2007.

6. Non-metal mining products industry sector: The number of facilities in this sector amounted to 557 by the end of 2008, or 13.2 per cent of the total number of facilities, an increase of 41 facilities in comparison to 2007. A total of Dh11,660m is invested with a rate of investment of 15.05 per cent and an average Dh20.9m per facility. It is an increase of Dh2,798m compared to 2007. The sector employs 65,023 workers (20.46 per cent), an average of 117 employees per facility, an increase of 10,911 workers compared to 2007.

7. Basic metal industries sector: The number of facilities in this sector amounted to 77, an increase of eight facilities in comparison to 2007, or 1.83 per cent of the total number. A total of Dh7,470m is invested with a rate of investment of 9.8 per cent and an average Dh97m per facility. It is an increase of Dh177m compared to 2007. The sector employs 9,751 workers (3.17 per cent), an average of 127 employees per facility, an increase of 1,000 workers compared to 2007.

8. Metal products, tools and equipment sector: The number of facilities in this sector amounted to 1,178 by the end of 2008, or 27.92 per cent of the total number of establishments, an increase of 136 facilities in comparison to 2007. A total of Dh5,892m is invested with a rate of investment of 7.57 per cent and an average Dh5m per facility. It is an increase of Dh783m compared to 2007. The sector employs 89,159 workers (27.95 per cent), an average of 76 employees per

facility, an increase of 10,586 workers compared to 2007.

9. Other transformational industries sector: The number of facilities in this sector amounted to 174 by the end of 2008, or 4.12 per cent of the total number of establishments, an increase of 12 facilities in comparison to 2007. A total of Dh182m is invested with a rate of investment of 0.24 per cent and an average Dh1m per facility. It is an increase of Dh10m compared to 2007. The sector employs 5209 workers (1.64 per cent), an average of 30 employees per facility, an increase of 353 workers compared to 2007.



Industrial sector in the Emirates

  - Abu Dhabi: The number of facilities recorded in the industrial register amounted to 326 by the end of 2008, or 7.7 per cent of the total number of establishments, an increase of 14 facilities in comparison to 2007. A total of Dh39,809m is invested with a rate of investment of 51.7 per cent and an average Dh122.1m per facility. It is an increase of Dh887m compared to 2007. The sector employs 49,052 workers (15.4 per cent), an average of 150 employees per facility, an increase of 5,067 workers compared to 2007.

  - Dubai: The number of facilities recorded in the industrial register amounted to 1,718 by the end of 2008, or 40.7 per cent of the total number of facilities, an increase of 170 facilities in comparison to 2007. A total of Dh18,942m is invested with a rate of investment of 24.6 per cent and an average Dh11m per facility. It is an increase of Dh1,827m compared to 2007. The sector employs 122,321 workers (71 per cent), an average of 71 employees per facility, an increase of 9,522 workers compared to 2007.

  - Sharjah: The number of facilities recorded in the industrial register amounted to 1,210 by the end of 2008, or 28.7 per cent of the total number of facilities, an increase of 90 facilities in comparison to 2007. A total of Dh4,288m is invested with a rate of investment of 5.6 per cent and an average Dh3.5m per facility. It is an increase of Dh249m compared to 2007. The sector employs 77,564 workers (24.4 per cent), an average of 64 employees per facility, an increase of 3,940 workers compared to 2007.

  - Ajman: The number of facilities recorded in the industrial register numbered 616 by the end of 2008, or 14.6 per cent of the total number of establishments, an increase of 66 facilities in comparison to 2007. A total of Dh1,549m is invested with a rate of investment of two per cent and an average Dh2.5m per facility. It is an increase of Dh52m compared to 2007. The sector employs 33,456 workers (10.5 per cent), an average of 54 employees per facility, an increase of 2,577 workers compared to 2007.

  - Ras Al Khaimah: The number of facilities recorded in the industrial register totalled 143 by the end of 2008, or 3.4 per cent of the total number of facilities, an increase of 16 facilities in comparison to 2007. A total of Dh4,948m is invested with a rate of investment of 6.4 per cent and an average Dh34.6m per facility. It is an increase of Dh830m compared to 2007. The sector employs 24,376 workers (7.7 per cent), an average of 170 employees per facility, an increase of 7,893 workers compared to 2007.

  - Umm Al Quwain: The number of facilities recorded in the industrial register amounted to 140 by the end of 2008, or 3.3 per cent of the total number of facilities, an increase of nine facilities compared to 2007. A total of Dh499m is invested with a rate of investment of 0.6 per cent and an average Dh3.6m per facility. It is an increase of Dh16m compared to 2007. The sector employs 5,362 workers (1.7 per cent), an average of 38 employees per facility, an increase of 236 workers compared to 2007.

  - Fujairah: The number of facilities recorded in the industrial register amounted to 66 by the end of 2008, or 1.6 per cent of the total number, an increase of two facilities compared to 2007. A total of Dh7,010m is invested with a rate of investment of 9.1 per cent and an average Dh106.2m per facility. It is an increase of Dh549m compared to 2007. The sector employs 5,710 workers (1.8 per cent), an average of 87 employees per facility, an increase of 426 workers compared to 2007.

 

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