Invest in the Manufacturing Business in Dubai, UAE

by Zaara 04, Dec 2023

Dubai business hubs are growing to great heights. This is attracting investors from around the world. Dubai offers many opportunities for various industries including manufacturing. This is because of its strategic location, stunning infrastructure, and 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.

Reasons for Investing in Manufacturing Businesses in Dubai -

The manufacturing sector in Dubai, UAE is on the rise. There are many changes in the market which 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%
  • Dubai’s Industrial Strategy will be out in action by 2030
  • Abu Dhabi’s industrial sector is to grow by - 56%
  • Dubai’s industrial sector is to grow by - 51%
  • Around 27,000 jobs will emerge

Thus, we can see there are huge growth prospects for this sector. It's the reason, entrepreneurs are trying to start their manufacturing businesses in Dubai.

Investments to make in Top Manufacturing Companies in Dubai -

Investors get many investment opportunities because ... Dubai is one of the most popular business hubs. It can get 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:

Profitable industry around the world. It’s all about the food and beverage industry in Dubai because of its high demand. It's 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 by 5.13%.
  • The confectionery and snacks segment is the largest market-segment. The market volume is AED 34.30 bn in 2023.
  • The online sales in this market will have 1.1 of total revenue by 2023.
  • The UAE food-service market is estimated to be 62.14 bn AED in 2023 and is expected to reach 161.51 bn AED in 2029.

2) Pharmaceutical Industry:

The pharmaceutical industry is also growing. This is due to the growing population and awareness towards healthcare. If you invest in this industry, it'll bring UAE closer to becoming a regional healthcare hub.

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

  • The market will stand at 857.59 million AED in 2022.
  • It's expected to grow at a steady rate of 7.96% during the forecast period.
  • The UAE pharmaceutical market revenue is forecasted to increase between 2023 and 2028 by a total of 1.64 bn AED.
  • After the 9th consecutive increasing year, the indicator is estimated to reach 1.64 bn AED and, thus, 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 are profitable and sustainable in Dubai, 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 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 for products like curtains, child safety seats, and luggage. Woven goods, like knitwear, are the best-selling in the market.
  • This industry has a large customer base, and UAE sells to over 50 countries.
  • Dubai has ~16 million foreign visitors which raises growth in the retail industry.
  • The textile industry contributes a major part to the city’s GDP. 

4) Aerospace Industry:

Dubai has been taking steps in the aerospace industry. It's turning Dubai into an international aerospace centre. The Dubai air-show events are gaining traction, 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 an expanding airport. It 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. 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 planes on display and a dedicated pavilion for advanced aerial mobility.
  • Dubai is working towards sustainability and innovation in the aerospace industry. This will enhance the passenger experience.

5) Automotive Industry:

Among the top manufacturing industries, the automotive industry is another profitable investment option. After switching to electric and autonomous vehicles, Dubai has become a centre for sustainable transportation. It offers various opportunities to invest in electric vehicle manufacturing and related technologies. 

  • In UAE, the sales is 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 at 8.4%.
  • Dubai has a high demand for luxury vehicles. UAE is gonna have ~27 million vehicles by 2023. This includes 18 million cars and 9 million commercial vehicles. 
  • Dubai has a favourable environment. 100 per cent foreign ownership in 13 industries and 122 economic activities.

6) 3D Printing and Additive Manufacturing:

Dubai is welcoming 3D printing and additive manufacturing technologies. This is 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 getting drawn towards this industry because –

  • This market is projected to grow by almost 24% between 2023 and 2025. 3D printing is expected to almost triple in size between 2020 and 2026.
  • The global 3D printing market was valued at 0.81 bn AED in 2022. Also, it's 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 rising. Investing in this industry helps to meet the UAE’s vision for a sustainable future. This positions businesses to cater to the growing 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 practices. 

8) Medical Devices Manufacturing:

Medical device manufacturing is another popular industry among other manufacturing businesses in Dubai. This is because the health sector is expanding, offering various opportunities for investors. Dubai has a vision of becoming a medical tourism destination. There's a growing demand for high-quality medical equipment and devices. The Dubai factories are producing devices according to the standards set by the authorities.

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 for attracting 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.
  • 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 gonna 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 diversity, and well-planned infrastructure. This makes UAE 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 growing manufacturing sector.

The Dubai factories are growing. Making it a centre for successful industries, which only benefits the investors. It's profitable and affordable for them.

Conclusion:

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 helpful because of the guidance and services provided.

The professionals will guide you about various industries. And also investing in the most favourable manufacturing business in Dubai.