Manufacturing adds 13% to Dubai’s GDP


Owing to increased government support and funding, the UAE’s manufacturing sector was among the largest non-oil contributors to Dubai’s GDP since 2009, according to a report.

The manufacturing sector ranked as the fourth highest contributor to GDP at 13.2 per cent, after wholesale trade, retail and repair (30 per cent), transport, storage and communication (14 per cent) and real estate and business activities (14 per cent).

The sector also employs eight per cent of Dubai’s total workforce, proportional to its total contribution to GDP – an indication that the sector functions at relatively reasonable levels of productivity, according to the Dubai Manufacturing Sector Snapshot report published by Dubai Exports, an agency of the Department of Economic Development (DED), Government of Dubai.

“Dubai is the ideal location providing world class trading platform for a wide array of commodities. This manufacturing report findings show a growing export market with significant opportunities for Dubai manufacturers,” said Engineer Saed Al Awadi, Chief Executive Officer, Dubai Exports.

Al Awadi said the Dubai government, realises the importance of diversifying sources of income and increasing the participation of the industrial and the export sectors in increasing the country’s GDP.

The manufacturing sector has experienced an average growth of eight per annum between 2007 and 2010, despite a sharp decline in the curve between 2008 and 2009. In 2010, the manufacturing GDP growth posted 11 per cent as compared to 6.20 per cent in 2009.

Currently, Dubai’s annual industrial production is estimated at $52 billion, with total exports of nearly $18 billion – accounting for 34 per cent of the total production.

Export of gold products constituted 60 per cent of the total export value. The growth in the value of direct exports correlated with growth in manufacturing GDP, indicating that exports sustained industrial growth during the financial crisis.

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