The manufacturing industry of the UAE is a key contributor to its GDP. It is an important part of the country’s rapidly transforming economic landscape. The sector includes various sub-industries such as chemicals, plastics, metals, food, and beverages, each contributing significantly to Dubai’s industrial ecosystem. 

The advanced infrastructure, strategic location, and supportive government create an ideal environment for the growth of the manufacturing sector. Continue reading to learn how to setup a business in Dubai and other places in the UAE and how the manufacturing sector shapes the UAE economy and its future in the country. 

Role of the Manufacturing Sector in the UAE’s Economy

The manufacturing sector of the UAE is a key contributor to the nation’s GDP. It is the third largest sector in terms of the nominal GDP of the UAE. However, the contribution of each emirate varies. While Dubai and Abu Dhabi’s share is lower, the emirates like Ras Al Khaimah and Sharjah increase the overall contribution to almost 10% of the total GDP in 2023. 

The UAE’s ambitious goals for its manufacturing sector can be observed in the announcement of Operation 300bn in March 2021. 

Operation 300bn aims to advance the UAE’s industrial sector and strengthen its impact on the national economy. It involves a 10-year strategy to increase the industrial sector’s contribution to the GDP from AED 133 billion to AED 300 billion by 2031. It aligns with national objectives and international commitments to promote sustainable economic growth, implement clean energy solutions, drive industrial innovation, and encourage responsible consumption and production.

Top Manufacturing Sectors in India

• Plastic

The plastic industry in the UAE is a significant part of the its manufacturing sector, contributing to both domestic needs and export markets. It is a key sector in the country’s strategy to diversify its economy and reduce reliance on oil and gas revenues.

• Chemicals

The UAE’s chemical industry produces a wide range of products that serve multiple sectors such as agriculture, construction, automotive, healthcare, and consumer goods. 

• Rubber

Due to the demand in automotive, construction, and other industrial sectors, the rubber industry in Dubai is growing. Although smaller than the petrochemical and plastics industries, the rubber industry plays a vital role in the UAE’s economy by supplying essential products to various sectors and creating job opportunities.

• Metals

UAE has invested significantly in the metal industry which contributes to various industries like construction, manufacturing, and automotive. Companies like Emirates Global Aluminium and Emirates Steel lead the UAE metal production. The metal industry in the UAE is all set for further growth, supported by government policies, strategic investments, and advanced infrastructure.

• Food

Companies like Global Food Industries and Al Islami Foods are key manufacturers in the UAE for the food industry, contributing to GDP, employment, trade, investment, and overall economic growth. Abu Dhabi’s manufacturing companies alone account for 36% of the UAE’s food processing industry. 

How to Start a Manufacturing Company in the UAE

• Choose a Name for Your Company

The first step to set up a manufacturing company in UAE is to select an appropriate name for your company. This name should be unique but also adhere to the UAE naming guidelines. Ensure its availability for registration and go ahead with securing it for your business.

• Apply for Business License

The next step is to obtain a trade license. This Industrial license is essential for functioning in the manufacturing sector, However, the specific license you need may vary depending on where you choose to set up your business.

• Obtain Visas

A visa is essential for operations within Dubai. Having s Green visa would be ideal for investors contributing to the UAE’s economy. It offers an extended duration compared to other residency visas and facilitates long-term engagement. To qualify for a green visa you would need proper investment documentation and approvals from relevant local authorities.

• Open a Bank Account

Finally, open a corporate bank account in the UAE to facilitate smooth transactions with the clients and suppliers. 

The Future of Manufacturing Industry in the UAE

The future of the manufacturing industry of the UAE is promising. The upcoming energy policy, a key component of the D33 economic diversification plan, is set to launch in 2024.  By empowering businesses to use sustainable energy like solar power, the policy aims to encourage a green economy, reduce business costs, and support environmental sustainability. This is expected to improve the performance of the industrial sector in a sustainable fashion. 

Technological advancements, foreign investment, and export growth have created an ideal environment for the growth of this industry. With strategies like Operation 300bn along with the business-friendly approach of the UAE administration, it is set to grow to its full potential. 

Why Choose Cleritbiz to Setup Manufacturing Industry in the UAE

Cleritbiz is a leading business consultation firm in Dubai, specializing in business formation, office solutions, banking and accounting services, and more. If you want to start a manufacturing company in Dubai, we can make it happen in just 7 days. Book a free consultation now!

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