Top 8 Manufacturing Business in the UAE

by commitbizadmin 16, Jun 2020

Top 8 Manufacturing Business in the UAE

The manufacturing market has been continuously spiking at the global level involving multiple segments in its umbrella. Manufacturing is one of the vital parts that confirms the existence of a product in the targeted market. The United Arab Emirates has been one of the most proficient business grounds for business establishment. Be it a small or large-sized business; the business investors find the region to be a profitable ground to invest in. Understanding the essence of the manufacturing business and the profit it holds, the UAE has been tirelessly working to establish the region as one of the booming manufacturing destinations.

Business investors have got multiple business options to invest in the manufacturing sector. This guide will help you understand the different options that the manufacturing industry holds. However, before moving ahead with the possibilities, let’s have a look at the highlights of the UAE Industrial Sector.

Highlights of Manufacturing Business in the UAE

The UAE holds enormous potential ground for the manufacturing sector. Few highlights of the manufacturing industry are:

  • Expected growth of the UAE’s Industrial Sector-34%
    • Abu Dhabi’s industrial sector to grow by-56%
    • Dubai’s industrial sector to grow by-51%
  • Expected jobs to be created-27,000
  • Dubai’s Industrial Strategy to be implemented by 2030

Now, let’s move on to the top industries that you can focus on while starting a manufacturing business in Dubai.

Top Manufacturing Business to Invest in Dubai

Some of the top manufacturing industries where the investors can focus and proceed ahead with are:

1.Food and Beverage

The Food & Beverage industry is one of the top profitable sectors of the world. The UAE has been one of the thriving destinations for the F&B industry that has paved out multiple business opportunities for global investors. The year 2020 is going to be a remarkable one for the F&B industry as the region is expected to fetch-in more than 25 million visitors.

Setting up an F&B manufacturing unit will turn out to be a profitable one as it can be easily expandable to other neighbouring destinations like Riyadh, Jeddah, Doha, Khobar, Manama, Kuwait. To know about the Food and Beverage industry, click here.

2.Ceramic

The ceramic industry is the next focused industry when it comes to the manufacturing segment. Both residential and commercial properties have been continuously embracing, and as a result, the demand for the ceramic industry would increase simultaneously. According to the estimated projections, an increase of 9% in CAGR is expected between 2019-2024. Ras-Al-Khaimah is one of the leading grounds when it comes to ceramic tiles which hold a global sales value of $1 Billion (3.67 Billion AED). The region also provides the flexibility to set up a manufacturing plant for the Ceramic industry.

3.Pharmaceuticals

The pharmaceutical industry is one of the focused Industrial Sector that is estimated to hit a count of 2.5 Billion AED by 2022. When it comes to pharmaceutical manufacturing business, there exists a significant scope in adhesive dressing, wadding and gauzes, gel preparations for surgery, first-aid box, vaccines for the vet. medicines, dental fittings etc. To know more about the pharmacy business in the UAE, click here. The demand for Generic medicine has been continuously rising, and the projection is stated below:

Year

Demand (in Billion AED)

2017

1.9

2018

2.1

2019

2.3

2020

2.5

2021

2.7

2022

2.9

Source: http://www.dedc.gov.ae/StudiesAndResearchDocument/Pharma-Sector-Report.pdf

You can see that the market has constantly been rising over the years, and thus setting up a manufacturing unit would turn out to be beneficial.

4.Textile

The United Arab Emirates is one of the lucrative GCC destinations when it comes to the textile business. The textile business in the UAE is enclosed with multiple segments like Woven, Knitted Garments, Cloth Manufacturing etc. The industry holds the second place after the oil industry in the region of the UAE. The textile market holds an active market when it comes to export business covering more than 52 countries combining the Asia, Middle-East, Europe and African markets. If you are dealing with the textile manufacturing business, and want to expand it in UAE, click here.

5.Metal

Aluminium- When it comes to the metal industry in the UAE, manufacturing of Aluminum and Steel are most prominent that drives the sector. The Al Taweelah Alumina refineries is one of the first refinery in the region of the UAE, which has been constructed by investing approximately AED 3.3 Billion.

Steel-The steel industry in the UAE has got a significant demand, which is projected to grow by 30% by the year 2021. The growth is expected to be tremendous as it would be backed by Dubai Expo 2020. The market value of prefabricated building and structural steel is expected to grow by USD 4 Billion by 2022.

Gold- Known as the land of Gold, the UAE is the ultimate destination when it comes to gold manufacturing. Apart from the manufacturing segment, multiple options are available for you if you are dealing with gold. To know more about the gold business in the UAE, click here.

Copper- Beyond aluminium, steel and gold, copper is the metal that is focused on producing multiple products like ornaments, copper cables etc.

Thus, it can be seen that proceeding ahead with the metal manufacturing business in the UAE is a feasible one.

6.Aerospace

The aviation sector is the next focused segment that you can proceed ahead. The UAE has been continuously taking steps to expand the aviation sector. The prime goal is to become the global hub when it comes to manufacturing of Aero Engine components. The aerospace sector has been one of the six Dubai Industrial Focused sectors, holding a current contribution of 2.3%. The initiatives include:

  • Emirates Offset Program
  • Strategic Tenant Ownership
  • Land Lease Subsidization
  • Dubai Industrial Aerospace Cluster
  • Equity Participation in Aerospace MNC
  • 3D Printing Proliferation Strategy
  • Global MRO Championing
  • JV Facilitation
  • Aerospace University Programs
  • Aerospace Scholarship Programs
  • Financing Aerospace SME Expansion
  • Aerospace Training Institutions
  • Aerospace Internship Programs
  • Facilitating Aerospace Exports
  • Dubai Aerospace Industrial Exhibition
  • Dubai Aerospace Association

To know more about the aerospace industry prevailing in the UAE, click here.

7.Building Materials

Construction business is one of the significant contributors when it comes to the ground of the UAE. When it comes to the manufacturing of building materials, cement, ceramics, pipes, rebar, roof blocks and glass are the top priorities. The UAE is a significant producer of Glass, and Ras-Al-Khaimah is one of the preferred grounds as the units set up there holds the capacity to produce 700 tons of glass per day.

The future of the UAE holds enormous potential when it comes to the real estate business. As a result, the demand for construction equipment would have a huge market. If you are dealing with the construction equipment business or is planning to expand the same, then Dubai is the ultimate ground for you.

8.Plastic

The United Arab Emirates is the second-largest plastic producer in the GCC region after Saudi Arabia.  According to the report submitted by Business Monitor International, the UAE has got over 260 plastic manufacturing plants. By the end of 2022, the GCC plastic industry is expected to hold a value of 34.5 million tons. Thus, we can see that the region of UAE has got ground for a plastics manufacturing business.

Benefits of Starting a Business in the UAE

There are multiple benefits of incorporating a business in the ground of the UAE. Some of them are mentioned below:

1.Tax Exemption

Tax is another major component that every business investor is worried about. The Government of the UAE has exempted the personal tax, which helps them to become burden-free. Although, recently, the government has implemented the VAT concept, fixed at 5%, which gets implied to the business entities.

2.Easy Availability of Business License

In the ground of the UAE, every business entity needs to hold a specific business license to carry out the business activities. While dealing with manufacturing business, it is important to obtain an industrial license. This license will act as a legal permit that will allow the business professionals to carry out the business activities legally.

3.Availability of Different Locations

To ease the business incorporation process based on the nature, size and target market, different locations like MainlandFree Zone and Offshore is available. These locations stand unique and holds numerous advantages. It is recommended to understand the pros and cons of each one before finalizing the location for one’s business.

4.Complete Repatriation of Capital Invested and Profits Earned

One of the major concerns that pops in the mind of business investors is regarding the liquidation or repatriation of the investment made. To make the process simple, the Government of the UAE allows complete flexibility to repatriate the capital invested by the investor along with the profits made during the business cycle.

5.Expo 2021

The upcoming Dubai Expo 2021 is expected to be a game-changer that would have a drastic impact on the business industries. Over a period of six months, the event is projected to fetch-in more than 25 million visitors, which would end up giving birth to multiple business collaborations. To know more about the opportunities that the Expo holds for its visitors and business investors, click here.

To start a manufacturing business in the ground of Dubai, an industrial license needs to be obtained, which is possible only availing the permission from the Government Authorities. The license can only grab if the documentation process gets cleared in an error-free way. Now, to proceed ahead alone turns out to be a complicated and tedious process. The feasible way is to proceed ahead with the consultation of a business expert, who is well-versed with the business incorporation process in Dubai.

Benefits of Availing Professional Advice

Some of the benefits that you will be availed by taking the help of professional experts are:

  • Outsourcing the incorporation will lead to less burden
  • Effective utilization of available time and resources
  • Tasks are handled professionally and error-free
  • Tasks will be completed on-time
  • Professional experts stand as a guide

How Can Commitbiz Help?

With the intent of providing the best and simplified incorporation process, Commitbiz has served numerous clients across the UAE, helping them to initiate their business roots. Since inception, we have been guiding multiple business owners to transform their business ideas into reality. Our experts hold industry experience and are well-versed with the legal rules and proceedings regarding business incorporation. They take the initiative to understand the business requirements and provide practical and tailored business setup solutions. To proceed ahead with your manufacturing business, do have a word with our advisors. Contact us today-we’d be glad to assist.