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Dubai, the dazzling gem of the United Arab Emirates, is more than just a worldwide financial centre; it also stands as an emerging manufacturing hotspot. Boasting cutting-edge infrastructure, pro-business policies, and a strategic position. Dubai presents unmatched opportunities for companies aiming to grow in this vibrant industry. Let’s explore why Dubai and its surrounding Emirates could be the prime choice for your manufacturing endeavours.
Dubai connects the East and West with its prime location, featuring the Jebel Ali Port, one of the world’s largest, and two international airports for seamless logistics. This infrastructure connects businesses to over 150 ports, enhancing supply chain efficiency. The Cargo Mega Terminal at Dubai Airport is one of the largest cargo hubs in the region and handled over 1.8 million tonnes of cargo in 2023. Moreover, the upcoming Al Maktoum Airport in Dubai is expected to be the world’s largest airport and 5 times the size of the current Dubai airport.
Dubai’s free zones offer benefits such as 100% foreign ownership, ZERO corporate taxes for 50 years, ZERO personal income tax, and customs duty exemptions. They also simplify the business setup process for quicker operational launches.
Manufacturing in UAE currently accounts for only 11% of the UAE’s GDP with an output of about USD 26 billion in 2023. The UAE’s new economic diversification strategy focuses significantly on developing the domestic manufacturing in IAE. Initiatives like Operation 300bn aim to boost the manufacturing output to reach to USD 81.7 billion by 2031, over three times its current output.
The UAE’s rise as a regional powerhouse is no accident. With a GDP of USD 509 billion in 2023, it’s the third-largest economy in the Middle East, trailing only Saudi Arabia and Israel. The UAE’s manufacturing sector isn’t growing in isolation strategic policies and innovative approaches are fueling it:
The UAE’s economic transformation is remarkable. Once reliant on oil, the country now leads the way in non-oil economic diversification, with 72.4% of its GDP in H1 2023 driven by non-oil sectors.
| Key Metrics | 2023 | Growth |
| GDP | USD 509 billion | |
| Manufacturing Output | USD 25.9 billion | 91.1% since 2013 |
| Contribution to GDP | 11% | Up from 7.9% in 2013 |
Dubai caters to a diverse range of manufacturing industries, offering immense growth potential in the following sectors:
1. Metals
The UAE’s metal industry thrives, with a steel production capacity of 7.72 million tons. Driven by strong construction demand, plans aim to boost this capacity to 15 million tons by 2030.
2. Chemicals and Petrochemicals
This sector comprises 22% of the UAE’s manufacturing and utilizes abundant raw materials and strong export markets. Investment opportunities exist in polymers and specialty chemicals.
3. Pharmaceuticals
The pharmaceutical industry will reach a market size of USD 4.7 billion by 2025, supporting Dubai’s manufacturing goals. The UAE hosts 23 plants producing 2,500 local medicines, cementing its position as a regional hub. UAE is also home to one of the world’s largest pharmaceutical company, Julphar.
4. Food and Beverages
Dubai’s food and beverage sector is set to earn USD 44 billion by 2026, with over 2,000 businesses contributing to processed food and beverage manufacturing opportunities.
| Sector | Opportunities | Key Advantages | Case Study |
| Metals | Metal processing and fabrication for construction. | Access to raw materials and low costs | Austrian firm Unger Steel invested USD 23 million in a Hamriyah Free Zone plant with an installed capacity of 50,000 tons of structural steel annually, leveraging the UAE’s infrastructure and incentives. |
| Chemicals | Polymers, lubricants, and ammonia production | Established upstream and downstream markets | In 2023, Abu Dhabi unveiled USD 6 billion in new investment opportunities for the sector. |
| Pharmaceuticals | APIs, bulk medicine production, and regional pharma hubs | The fast-growing healthcare market in MENA | Himalaya Wellness has invested USD 54.4 million in a state-of-the-art herbal medicine factory in Dubai Industrial City. |
| Food & Beverages | Meals, snacks, and beverages that are ready-to-eat manufacturing | Strong demand and export opportunities | Nestlé’s USD 145 million investment in Dubai has turned the region into a key export hub for over 30 countries. |
Free zones are critical to Dubai’s manufacturing ecosystem, offering numerous benefits to businesses. Here’s a snapshot of some key free zones:
It’s the free zones—special economic areas designed to provide businesses with unparalleled benefits:
| Free Zone | Specialisation | Advantages |
| Ras Al Khaimah Economic Zone | Multi-sectoral zone with already developed ecosystem for most industry segments | Cost-effective large-scale manufacturing. Dedicated port with fast turnaround times. |
| Jebel Ali Free Zone | Global trade and logistics | 100% foreign ownership, proximity to Jebel Ali Port |
| Dubai Industrial City | Light and medium industries, food processing | Proximity to major transportation hubs |
| Khalifa Port Free Trade Zone | Heavy and Light Manufacturing | State-of-the-art infrastructure |
| Hamriyah Free Zone | Steel and petrochemical industries | Access to deep water ports |
| Dubai Silicon Oasis | Focused on technology and electronics manufacturing. | It boasts advanced laboratories, innovation hubs, and assistance for R&D |
| Ajman Free Zone (AFZ) | SMEs, flexible business setups | Affordable, ideal for startups. |
AquaChemie, a leading GCC chemical firm, invested USD 100 million in JAFZA for corporate offices and specialty chemical manufacturing, including a USD 50 million petrochemical terminal launched in 2023 with 34,000 cubic meters of storage. This expansion aims to grow revenue from USD 150 to USD 400 million.
Himalaya Wellness Company LLC is investing $54.4 million in a Dubai pharmaceutical factory. The first phase will produce 3 billion tablets, 15 million syrup bottles, and 3 million ointments annually, targeting global demand, especially in the Middle East, until 2030.
In 2015, Nestlé invested USD 145 million in a 175,000-square-meter factory in Dubai for regional markets. The Nestlé UAE hub exports nearly 100,000 metric tons annually to over 30 countries, primarily in the Middle East and North Africa, highlighting the strategic benefits of manufacturing in the UAE’s favorable location and infrastructure.
Hamriyah Free Zone attracted the Meraki Group, which built a 30,000-ton steel plant, showcasing the UAE’s ability to combine strategic location with business efficiency.
Stratrich is your trusted partner in establishing a successful manufacturing business in Dubai. With extensive expertise in the UAE’s industrial landscape, we offer:
At Stratrich Consulting, we have streamlined the business setup process in Dubai, UAE to ensure it is straightforward and hassle-free. By leveraging our expertise, you can navigate away from complications and concentrate on your business goals.
Dubai’s manufacturing sector offers a unique blend of opportunity, innovation, and growth. Its strategic location, robust infrastructure, government incentives, and thriving free zones make it the perfect destination for global businesses looking to scale operations. As the UAE continues diversifying its economy and investing in industrial growth, it is time to tap into Dubai’s potential.
Are you ready to unlock the doors to global manufacturing opportunities in Dubai? Let us guide you through the journey and help turn your vision into a thriving reality.
