banner ad

UAE: directives to accelerate implementation of Dubai Industrial Strategy 2030 initiatives

| 27/12/2016 | Reply
f552bb9a_1541xe31wffffff

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum

– Strategy is projected to increase Dubai’s total GDP by AED165 billion by 2030

– General Secretariat of the Executive Council holds a series of meetings and workshops – with the entities executing the strategy’s objectives

– Goals include industrial coherence and integration with other economic sectors, linking the target sectors to educational and research institutions and creating an attractive investment environment for targeted strategic industries

As part of His Highness’ follow-up on the implementation of the Dubai Industrial Strategy launched by Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum to elevate Dubai into a global platform for knowledge-based, sustainable and innovation-focused industries, Crown Prince of Dubai and Chairman of The Executive Council His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has issued directives to intensify efforts to accelerate the implementation of the Dubai Industrial Strategy, as part of achieving Dubai’s unified vision and promoting Dubai’s position as a global economic hub. His Highness also directed all the teams involved in the implementation of the strategy beginning 2017 to join hands to drive the implementation.

Sheikh Hamdan said: “Strengthening creativity and innovation in various industrial areas is one of the key elements of the Dubai Industrial Strategy, which is in line with our quest to consolidate the foundations of a sustainable dynamic economy based on research, knowledge and development. This can help achieve the goal of making Dubai a unique investment destination, especially as we already have the basic drivers and capabilities needed to achieve such a goal, including efficient and reliable infrastructure and legislative frameworks, which are continuously subject to improvement and development. All these elements will take the industrial sector into a new phase that is compatible with the aspirations and vision of our country to maximise the contributions of this vital sector in the post-oil era.”

His Highness the Crown Prince of Dubai stressed the need to intensify and unify the efforts of all government departments and entities involved in the implementation of the Dubai Industrial Strategy, in the light of the clear government operational plan. The plan, set by His Highness Sheikh Mohammed bin Rashid Al Maktoum, aims to strengthen the foundations of teamwork, to stimulate positive energy, and to open the way for innovative ideas and suggestions that will accelerate the achievement of the strategy’s objectives; it will also serve the overall development directives in the state, and assist the continuous development of Dubai’s economic capabilities and the policy of diversifying income sources.

Promoting Dubai’s position as a global economic hub
The General Secretariat of the Executive Council has confirmed that it has immediately begun to implement the directives of His Highness by organising a series of meetings and workshops with the entities executing the objectives of the Dubai Industrial Strategy, which focuses on enhancing industrial coherence and integration with other economic sectors – linking the target sectors to education and research institutions with a view to stimulate innovation and creativity as well as creating an attractive investment environment for targeted strategic industries. The strategy is projected to increase Dubai’s total GDP by AED165 billion by 2030.

In this context, Secretary General of the Executive Council of Dubai His Excellency Abdullah Al Shaibani said: “The Dubai Industrial Strategy is an enabler of Dubai Plan 2021 as it helps Dubai continue its journey towards achieving leadership and enhance its position as a global economic hub and one of the world’s most promising and leading hubs in various sectors. Under the leadership of Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid Al Maktoum and the close follow-up on the part of Crown Prince of Dubai and Chairman of The Executive Council His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, working on developing the industrial and economic sectors will result in strengthening Dubai’s leading position globally to number one.”

He added: “The strategy entered the implementation phase in September 2016; six specialised work teams for all the targeted sub-sectors were formed and each team will follow-up the implementation process of the sector entrusted to it. These teams will work together with the support of a governmental working group and, being the representative of the Government of Dubai, will promote the plan when meeting investors. The teams will also launch a number of initiatives to drive the growth of the industrial sector in the next few months.”

Al Shaibani also pointed out that the members of these distinguished work teams were drawn from all stakeholders of the free and non-free zones both locally and federally, to ensure the involvement of all strategic partners in the industrial sector, especially in the private sector, in order to develop an ambitious strategy with practical and specific objectives and priorities. Everybody will be involved in implementing them and translating them into reality that will raise Dubai’s competitiveness to new levels.

Developing strategic objectives for building the economy of the post-oil era
The Dubai Industrial Strategy is based on five key objectives that will serve as the foundation for Dubai’s industrial future to build a sound and sustainable economy based on the diversification of sources of income as well as for preparing for a post-oil future. Strategic objectives aim to increase the total output and value-added of the manufacturing sector, to enhance the depth of knowledge and innovation by improving labour productivity and increasing R&D spending, to make Dubai a preferred manufacturing platform for global businesses by increasing the presence of global manufacturers in Dubai and supporting the global outreach of local companies.

The strategy also aims to promote environmentally-friendly and energy-efficient manufacturing by reducing energy consumption and manufacturing pollutants, and supporting the Green Economy Initiatives. Additionally, it promotes Dubai’s position as the Capital of Islamic Economy by adopting Islamic standards through developing the Islamic products’ manufacturing sector and increasing the number of halal certified manufacturing companies in Dubai.

Six work teams to serve six sub-sectors
The Dubai Industrial Strategy has further identified six priority sub-sectors from 2016 to 2030, namely: Aerospace, Maritime, Pharmaceuticals and Medical Equipment, Aluminum and Fabricated Metals, Food and Beverages and Machinery and Equipment. Each sub-sector includes a number of initiatives to be developed by the executing entities. A number of executive teams were formed for each sub-sector to set the details and timeframes. All work teams are supported by the concerned entities such as Dubai’s Department of Economic Development (DED), Dubai Municipality, Dubai Electricity and Water Authority (DEWA) and Dubai Chamber of Commerce and Industry.

– Aerospace:
The strategy focuses on the Emiratisation of the aerospace sub-sector by manufacturing spare parts for aircraft and providing maintenance and repair services to the large number of aircraft that land at the UAE’s airports, and becoming a global hub for aviation.

The crucially important aviation sector that supports the movement of passengers through Dubai Airports has achieved a compound annual growth rate of 11% during the period from 2011 to 2014 to reach approximately 70 million. The Dubai-based Emirates Airlines alone currently owns a fleet of 239 aircraft, and a further 269 have been ordered, making it the largest airline in the Middle East.

The work team of the aerospace sub-sector includes: Dubai South, Emirates Airlines, Dubai Wholesale City and Jebel Ali Free Zone Authority (Jafza).

– Maritime:
The Dubai Industrial Strategy focuses on the Emiratisation of the Maritime sub-sector with the help of Dubai’s prime position in the field of maritime maintenance and repair and its ability to expand its activities to attract more traffic to its facilities. It also outlined Dubai’s ability to foray into manufacturing and marketing yachts and boats to meet the tourism sector’s increasing demands.

The emirate also enjoys a unique global location as a centre of trade, maritime and logistics services as well as the services provided by Dry Docks World; in addition to Jebel Ali Port, which is considered the largest seaport in the Middle East with a capacity of 21 million containers.

The work team of the Maritime sub-sector includes Dubai Maritime City, Dubai Wholesale City, Dubai World and Jebel Ali Free Zone Authority (Jafza).

– Pharmaceuticals & Medical Equipment:
Dubai is considered one of the prime hubs qualified to host plants and research centres belonging to international pharmaceutical firms. In this sub-sector, the strategy will focus on manufacturing cosmeceuticals (cosmetics that are claimed to have medicinal properties) to benefit from the growth of this niche market – particularly given the increasing demand for halal cosmeceuticals which will strengthen the role Dubai plays in promoting the Islamic Economy. It also aims to make Dubai a major exporter of cosmeceuticals in the Middle East. The pharmaceutical sub-sector is of vital importance for the UAE as the countries in the Gulf Cooperation Council (GCC) region currently import 80% of their pharmaceutical needs. Therefore, focusing on this sub-sector will help increase investment opportunities and added value in R&D and capacity-building.

The work team of this sub-sector includes Dubai Science Park, Dubai Healthcare City, Dubai Wholesale City, Dubai Investments and Jebel Ali Free Zone Authority (Jafza).

– Aluminium & Fabricated Metals:
Dubai is one of the world’s leading producers of aluminium. While this leading position is based on the manufacturing of (upstream) primary products, the strategy will aim to enhance the Emirate’s competitiveness and expand its production base to include (downstream) finished products. The downstream activities (i.e. the final aluminium products industry) will further enhance the global reach of domestic producers and attract players from the international auto and aerospace industry.

Dubai is home to one of the largest aluminium smelters worldwide. The UAE is among the top global exporters of aluminium – it exports 88% of the 2.4 million tons it produces annually. The global market for aluminium was estimated to be worth $421bn in 2014.

The work team of this sub-sector includes Jebel Ali Free Zone Authority (Jafza), Dubai Investments, Dubai Wholesale City and Dubal.

-Food & Beverages and Fast Moving Consumable Goods (FMCG):
The Dubai Industrial Strategy outlines Dubai’s capabilities and vital role in the food and consumable goods industry. It also aims to leverage the growing demand for halal products to enhance Dubai’s position as the Capital of the Islamic Economy and expand local manufacturing capabilities for producing high quality halal products.

The global F&B market was valued at approximately $4 trillion in 2014. Dubai’s exports in the same year were worth AED 47.7 billion ($13bn). With countries in the GCC importing 70% of their food needs and registering an annual compound growth of more than 3% in 2030, Dubai can play a significant role in becoming a major hub for food products in the region. Dubai’s advanced infrastructure, airports and ports, its logistical capabilities and its strategic location serve as drivers for the success of the F&B sub-sector as it relies heavily on ease of access and speed of delivering raw materials and products.

The work team of this sub-sector includes Jebel Ali Free Zone Authority (Jafza) and Dubai Wholesale City with the participation of Dubai Investments and Dubai Islamic Economy Development Centre.

-Machinery & Equipment:
The Machinery & Equipment sub-sector represents 25% of the overall industrial sector in Dubai. This sub-sector is highly significant and its competitiveness must be maintained, given its lucrative investment and profitability opportunities, due to the high demand for construction machinery and equipment.

The work team of this sub-sector includes Jebel Ali Free Zone Authority (Jafza), Dubai Wholesale City and Dubai Investments.

– A global platform for sustainable and innovation-focused industries
The Dubai Industrial Strategy is one of the targeted strategic programmes of the Dubai Plan 2021. To achieve this strategy, the Economic Development Committee has recommended the formation of a work team chaired by President of Dubai Civil Aviation Authority and Chairman of the Emirates Group His Highness Sheikh Ahmed bin Saeed Al Maktoum. This team is co-chaired by Jebel Ali Free Zone Authority (Jafza) and Dubai Industrial City, with the support of the General Secretariat of the Executive Council. The strategy aims to develop an industrial sector based on knowledge and innovation to enhance the competitiveness and sustainability of these sectors in Dubai and across its free zones.

It will have a significant impact on Dubai’s economy in the period leading to 2030. The expected impact includes: AED 160 billion forecasted increase in Dubai’s total GDP, AED 18bn forecasted increase in GDP for the industrial sector, creation of more than 27,000 specialised jobs, increase in R&D expenditures by approximately AED 700 million and AED 16bn forecasted increase in exports.

The implementation of the strategy will be overseen by the General Secretariat in coordination with work teams formed. It will provide support, guidance and consultation as well as review of developments and outcomes. It will also update senior leadership with progress and achievements.

Tags:

Category: Islamic Economy, Middle East & Africa, Research

Leave a Reply