Saed Al Awadi, Chief Executive Officer, Dubai Exports
The Machinery & Spare Parts Sector is one of the leading industries in Dubai with a total investment of AED319 million since 2008, according to a recent report published by Dubai Exports, an agency of the Department of Economic Development – Government of Dubai. According to the Industrial Survey (2008), the value of production of the Manufacture of Machinery & Equipment in Dubai was 5.5 Billion AED, generating a value added of 1.6 Billion AED.
Currently, 46 industrial units across the UAE or 50% of the country’s manufacturing industry for machinery and spare parts is responsible for the assembly of refrigerators and other air cooling products. Meanwhile, the production of pumps comes in second with around 10 operating units in the country.
With most of the local manufacturers of Machinery & Equipment focusing in the refrigeration and air conditioning industry, Dubai is steadily developing into a regional hub for the manufacture and supply of the high demanding refrigeration and freezing sector in the GCC region. In addition, this particular sector has the upper advantage due to Dubai’s proximity to the end user providing them with service, maintenance and technical support.
“While Dubai’s machinery and equipment sector is currently thriving, it still needs to improve and employ advanced technologies to be at par with other countries. In addition, high-skilled labour and large capital outlays are needed to ensure that this sector will continue to produce export quality products and better contribute to the country’s GDP,” said Engineer Saed Al Awadi, Chief Executive Officer, Dubai Exports.
Among the total external trade through Dubai (Direct and Free Zone imports, exports and re-exports) registered AED 233 Billion in 2010 a hike of 6% over 2009. While Direct Exports registered AED 623 Million in 2010 increasing significantly by 45% over 2009 value. The large value of external trade and significant increase in exports underscore the economic importance and future potential of the sector.
According to Dubai Customs statistics, the top destinations for direct exports of products in the machinery and equipment sector are in Iraq, Libya, Egypt, Pakistan, Qatar, Yemen, Sri Lanka, Saudi Arabia, Germany and Iran. Meanwhile, direct re-exports from this sector go to Iran, Iraq, Saudi Arabia, Afghanistan, Pakistan, United Kingdom, Qatar, India and the Netherlands.
Al Awadi added, “In the coming years, the UAE aspires to fulfil its objective of increased manufacturing and service capabilities in key sectors, which is made possible by the growing domestic and regional demand, and advanced technologies, easily accessible resources, and excellent global trade relations to complement its efforts.”
As per ITC Trade map, market potential exists in countries such as Romania, Falkland Island, Cuba, Georgia, Qatar, Tajikistan, Yemen, Uzbekistan and Lesotho for refrigerator and freezer products. Meanwhile, potential markets for pumps products are in Qatar, Switzerland, Marshall Island, America, Kyrgyzstan, Botswana, Rawanda, Congo, Pitcairn, and Democratic Republic of Congo. For Valve products, high potential markets are America, Tuvalu, Falkland Islands, British Virgin Island, Qatar, Democratic Republic of Congo, Macau (SARC), Europe, Marshall Islands and Rawanda.