Dubai Investments [DI], the largest investment company listed on the Dubai Financial Market, continues to play a major role in the growth of the manufacturing and industrial sector across the UAE, with significant contribution from its subsidiaries – particularly in the processing industries segment.
According to DI statistics, revenues from the DI’s manufacturing and contracting business touched AED 1.71 billion [$465.56 million] as on December 31, 2012, primarily driven by the growth achieved across its subsidiaries – Glass LLC, Dubai Investments Industries LLC and Masharie LLC.
The role of DI’s manufacturing sector assumes increased significance amidst a study by Dubai Chamber of Commerce and Industry which states that the UAE manufacturing segment is amongst the highest contributing sectors to the UAE’s non-oil GDP over the last decade, with stable percentage contribution of about 14% over the period 2001-2012 and showing growth pattern similar to that of the UAE GDP growth path.
In 2012, manufacturing exports accounted for 53% of the UAE’s total non-oil exports of merchandise goods and 22% of total exports including oil exports, which are also considered as relatively high. UAE manufactured exports increased from $8.3 billion in 2000 to about $59.2 billion in 2012 registering a cumulative annual growth rate of about 18%.
The manufacturing sector has witnessed a strong growth thrust and this remains one of the focus areas for DI, which operates across a wide array of manufacturing and processing industries including glass, aluminium products, building materials, pharmaceutical, food and related sectors.
Glass LLC, one of the DI subsidiaries, attracted massive demand from emerging markets, touching sales in excess of $163.35 million in 2012. Glass LLC, through its subsidiaries – Emirates Glass, Lumiglass, Saudi American Glass and Emirates Float Glass, provides premium quality glass solutions to the construction, automotive, security and defence industries across domestic and international markets.
Another DI sub-holding entity, Dubai Investments Industries LLC, operates companies responsible for industrial development in local and regional markets, including Edible Oil Company, Emirates Building Systems, Globalpharma, Marmum Dairy Farm, Emirates Extruded Polystyrene and Dubai Cranes & Technical Services.
Globalpharma, one of the leading pharmaceutical companies, operates a manufacturing facility across 27,000 square metres and has an annual production capacity of 300 million tablets, 150 million capsules and over seven million litres of dry syrup.
Marmum Dairy Farm, one of the largest dairy farms in the UAE, has also achieved a 10% growth in retail sales during 2012-13 as compared to 2011-12, thus reinforcing its market leadership and growth in the regional dairy and juice segments.
Masharie LLC – another DI subsidiary, operates a number of business units across sectors, including White Aluminium Extrusion LLC, Technological Laboratory Furniture Manufacturer LLC [Labtec], Emirates Extrusion Factory LLC, Lite Tech Industries LLC, Gulf Dynamic Services LLC, Techno Rubber Company LLC, Folcra Beach Industrial Company LLC, Gulf Dynamic Switchgear Co. Ltd, Gulf Metal Craft LLC and Emirates Thermostone Co. LLC.