Manufacturing business in Dubai

Top 8 Manufacturing Business to invest in Dubai

by Zaara 05, Dec 2023

Business hubs are continuously growing to great heights in Dubai, which attracts investors from around the world. Dubai offers numerous opportunities for various industries, including manufacturing, mainly because of its strategic location, stunning infrastructure, and business-friendly policies. Today, several manufacturing sectors are shining as profitable investment opportunities. 

Let’s explore some of the top manufacturing companies in Dubai to invest in with detailed data.

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Reasons to Invest in Manufacturing Companies in Dubai

The manufacturing sector in the UAE is on the rise as there are many changes in the market that are suitable for this emerging sector. A few highlights of the manufacturing industry are – 

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

Thus, we can see that there are huge growth prospects for this sector, and this is the reason many entrepreneurs are eyeing to set up manufacturing companies in Dubai.

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Investments to make in Top Manufacturing Companies in Dubai

Investors are provided with numerous investment opportunities because Dubai is known as one of the most popular business hubs in the world. Sometimes, it gets tricky for investors to segregate and make the right investment decisions, so let’s list down 8 top manufacturing companies to invest in Dubai –

1) Food and Beverage Industry:

In terms of profitable industries of the world, it’s all about the food and beverage industry in Dubai because of its high demand. It is driven by a huge population and a thriving tourism sector. Prime reasons to invest in the food and beverage industry are – 

  • The market is expected to reach 138.67 bn AED in 2023. 
  • The market is expected to grow annually by 5.13%.
  • The confectionery and snacks segment is the largest market segment, with a market volume of 34.30 bn AED in 2023.
  • The online sales in this market will have 1.1 of total revenue by 2023.
  • The UAE foodservice market size is estimated to be 62.14 bn AED in 2023 and is expected to reach 161.51 bn AED in 2029.

2) Pharmaceutical Industry:

In the list of manufacturing companies in Dubai, the pharmaceutical industry has also begun to grow due to the growing population and awareness towards healthcare. If investors invest in this industry, it brings them closer to the UAE’s goal of becoming a regional healthcare hub.

The pharmacy business in the UAE has been highly impacted, and the numbers are speaking for themselves –

  • The market will stand at 857.59 million AED in 2022.
  • It is expected to grow at a steady rate of 7.96% during the forecast period.
  • The revenue in the pharmaceuticals market in the United Arab Emirates was forecast to continuously increase between 2023 and 2028 by a total of 1.64 bn AED.
  • After the ninth consecutive increasing year, the indicator is estimated to reach 1.64 bn AED and, therefore, a new peak in 2028.
  • The demand for this industry has been increasing from 1.9 to 2.9 billion AED from 2017 to 2022.

3) Textile Industry:

Businesses and industries are highly profitable and sustainable in Dubai, majorly because of the strategic location. This makes it a centre for textile industries because of the easy access to key markets in the Middle East. 

Investments in this industry are beneficial because of the business opportunities for the textile industry in Dubai. The growth and increase in this industry in the coming years are major reasons to invest in the textile industry. 

  • The textile market size is expected to grow from 0.23 bn AED in 2023 to 0.86 bn AED by 2028 at a CAGR of 6.78%.
  • UAE has a large textile industry with products like curtains, child safety seats, luggage, and some trendy fashion for the localities. Woven goods, like knitwear, are the best-selling in the market.
  • Domestically, this industry has a large customer base, and UAE sells to over 50 countries.
  • Dubai has around 16 million foreign visitors annually which raises growth in the retail industry.
  • The textile industry contributes a major portion to the city’s GDP. 

4) Aerospace Industry:

Dubai has been making outstanding steps in the aerospace industry, turning it into an international aerospace centre. The airshow events in Dubai have gained high demand, which attracts investors to this industry. Reasons investors must consider investing in this industry –

  • Dubai is an international centre with two major airlines, Emirates. Dubai has the world’s busiest airport by international passenger traffic.
  • The Dubai World Centre is a swiftly expanding airport that will host the Expo 2020 and the Airshow Events 2023.
  • Dubai also aims to become a leader in advanced aerial mobility, with plans to launch the world's first urban air taxi service by 2025.
  • The airshow event brings in huge demand and makes a great impression all over the world. This event showcases the latest innovations and trends in aviation, space, and defence. It features over 1,400 exhibitors from 95 countries, 300 speakers, 180 aircraft on display and a dedicated pavilion for advanced aerial mobility.
  • Dubai is committed to sustainability and innovation in the aerospace industry to enhance the passenger experience.

5) Automotive Industry:

Among the top manufacturing companies in Dubai, the automotive industry is another profitable option for investments. After the transformation towards electric and autonomous vehicles, Dubai has turned out to be a centre for sustainable transportation. It offers various opportunities to invest in electric vehicle manufacturing and related technologies. 

  • The sales in the UAE were expected to double between 2021 and 2026 to more than half a billion units.
  • The after-sales market is also predicted to reach about 0.29 bn AED by 2023.
  • The growing vehicle population is upping the demand for spare parts, whose market is growing annually at 8.4%.
  • Dubai has a high demand for luxury vehicles both locally and regionally.  The UAE is expected to have around 27 million vehicles by 2023, which includes 18 million cars and 9 million commercial vehicles. 
  • Dubai has a favourable environment, with 100 per cent foreign ownership allowed in 13 industries and 122 economic activities.

6) 3D Printing and Additive Manufacturing:

Dubai has welcomed 3D printing and additive manufacturing technologies because they have the potential to transform traditional manufacturing processes. Investments in this industry allow innovation and creativity. The city has a vision to become a global leader in this industry by 2030. 

Investors are attracted towards this industry because –

  • The additive manufacturing market is projected to grow by almost 24% between 2023 and 2025. The 3D printing is expected to almost triple in size between 2020 and 2026.
  • The global 3D printing market size was valued at 0.81 bn AED in 2022 & is projected to grow from 0.99 bn AED in 2023 to 4.67 bn AED by 2030, exhibiting a CAGR of 24.9% during the forecast period.
  • Dubai has a growing market demand for 3D printing products and services.
  • Dubai has a supportive ecosystem for 3D printing innovation.

7) Renewable Energy Equipment Manufacturing:

The demand for solar panels, wind turbines and other renewable energy equipment is on the rise. Investing in this industry increases to meet the UAE’s vision for a sustainable future and positions businesses to cater to the growing global demand for renewable energy solutions.

  • The UAE has several renewable energy projects, producing a total clean power generation capacity of 8.8 GW by 2025.
  • The UAE government plans to invest 10.69 billion AED in renewable energy projects in Dubai.
  • Investing in the renewable energy industry reduces dependence on traditional industries. It supports Dubai's economic diversification strategy.
  • It enhances the company’s public image, meeting with the growing awareness and demand for environment-friendly practices. 

8) Medical Devices Manufacturing:

Lastly, medical device manufacturing is another popular investment industry among the manufacturing companies in Dubai because the health sector is rapidly expanding, offering various opportunities for investors. Dubai has a vision of becoming a medical tourism destination; there is a growing demand for high-quality medical equipment and devices. The factories in Dubai in this sector also produce devices according to the standards of the authorities and ensure top-quality services.

Various reasons to invest in this industry include –

  • The UAE has a growing demand for medical devices.
  • The UAE government provides incentives such as tax exemptions, subsidies, and regulatory reforms to attract foreign and local investors. It has been supportive of the medical devices industry.
  • This high demand also increases demand for the manufacturers in Dubai, giving job opportunities as well.
  • The healthcare market in the UAE is expected to grow from 528.80 bn AED in 2020 to 666.48 bn AED by 2023.
  • The number of enterprises in the Medical Devices and products market is projected to amount to 28.00 in 2023.
    A compound annual growth rate of 8.96% is expected (CAGR 2023–2028).

The UAE has always committed to economic diversification, and the well-planned investment in infrastructure makes it a favourable place for manufacturing companies in Dubai. 

This place continues to develop, which helps investors to capitalise and position themselves for long-term success in the rapidly growing manufacturing sector.

The factories in Dubai are growing rapidly, making it a centre for successful industries, which only benefits the investors. It is profitable and highly economical for them.

These investments can be confusing and complicated, and it can be difficult to make the right decision. There are times when reaching out to a consultancy firm like Commitbiz can be highly helpful because of the guidance and services provided. The professionals will guide the investors with detailed information on various industries and help them invest in the most favourable manufacturing company in Dubai.

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Why is the UAE the ideal place to start a manufacturing company?

The UAE is ideal for starting a manufacturing company because of its outstanding connectivity, foreign direct investment, and broad consumer base.

How many textile manufacturing industries are there in UAE?

There were around 170 textile manufacturing industries were there in UAE.

What is the predicted growth rate of the UAE pharmaceutical industry?

The pharmaceutical industry in the UAE is predicted to expand by 27% between 2021 and 2025.

What are the top manufacturing companies in UAE?

The top manufacturing companies in UAE are,

  • General Electric 
  • Alghanim Industries
  • Ecolab (ECL)
  • Saudi Chevron Phillips Company
  • Emerson
  • Al Ghurair Group
  • Eaton Corporation - Cooper Industries

What is the predicted growth rate of the UAE ceramic industry?

The GCC ceramic tiles market in the UAE is predicted to grow at a 7.6 per cent CAGR from 2020 to 2028.