twitteryou tubefacebookacp

// Add Social tags

Abu Dhabi?s manufacturing sector witnesses up to six per cent growth

Initiatives are being implemented to improve business environment, reduce operational costs and increase demand for local product. (Image source: ????????? ????????/Adobe Stock)

The industrial sector in Abu Dhabi has witnessed a rise as the growth rate of manufacturing industries increased to 5.9 per cent and 42 industrial facilities entered production with a total investment of US$3.35bn

The manufacturing sector of non-oil GDP has become the third largest contributor in non-oil industries in Abu Dhabi with an added value of US$13.42bn in 2018 compared to US$12.66bn in 2017, according to the preliminary estimates of Statistics Centre, Abu Dhabi.

The growth rate reflects the vital role of the manufacturing sector as an effective contributor as its contribution to non-oil GDP increased from 11.5 per cent in 2017 to 12.1 per cent in 2018.

This was reflected in the report issued by the Industrial Development Bureau of the Department of Economic Development (DED) on the industrial sector's performance in Abu Dhabi in 2018.

Saif Mohamed Al Hajeri, chairman of DED Abu Dhabi noted that manufacturing is among the leading sectors that are driving sustainable economic development in Abu Dhabi, in line with the government's goals to boost non-oil sector activities and increase its contribution to Abu Dhabi?s GDP.

Al Hajeri further explained that the industrial sector is among the top-performing sectors which effectively contribute to the sustainability of the local economy and a key pillar towards achieving economic competitiveness and leadership at the regional and global level, in line with Abu Dhabis long-term economic vision.

The report further showed that the number of new licenses reached 118 in the past year with an investment of US$630mn compared to 86 licenses in 2017 with an increase of 37.2 per cent. The exports of the manufacturing industries increased from US$6.21bn in 2017 to US$6.75bn in 2018, with an increase of 8.8 per cent.

The report pointed out that such results reflect the high competitiveness of the emirate's non-oil products and its big opportunity to access international markets due to the development of manufacturing industries' performance in the emirate in 2018.

The structural and glass industries reached 23.3 per cent of the total number of licenses; metal industries 19.3 per cent; chemical industries 9.7 per cent; rubber, plastic and fiberglass industries 9.5 per cent; equipment and machines 8.7 per cent; wood and paper 7.9 per cent; foods 7.7 per cent; electricity and electronic industries 3.2 per cent; sustainability and energy industries three per cent; textile, clothing and leather three per cent; printing and media industries 0.17 per cent and general industries 4.3 per cent of the total number of licenses.

According to the report, the Industrial Development Bureau concluded 27,848 transactions including 25,598 transactions for customs duty exemptions, 949 transactions for issuing new licenses, 806 transactions for technical modifications, 393 transactions for fees payments, 154 transactions for administrative modifications and 125 transactions for issuing new industrial licenses.

Ahmed Hilal Al Baloushi, acting executive director of the Industrial Development Bureau, stressed that the bureau is implementing a number of initiatives that contribute in developing the industrial sector in Abu Dhabi through improving the business environment, reducing the operational costs and increasing demand for local product.