Boosting Dubai's Competitiveness

Jamel Zarrouk

Dubai’s manufacturing sector generated value added of AED 35.7 billion in 2016, but labour productivity at AED 139,000 per worker was relatively low compared to other sectors. The sector contributed only 9.5 per cent of total value added in 2016, considerably less than the average of 16.2 per cent in in global GDP and received only 4.2 per cent of incoming FDI in the same year.To stimulate industry the Emirate launched the Dubai Industrial Strategy 2030 (DIS2030) which nominates manufacturing as a strategic sector.Dubai’s challenge is to transform a sector characterised by low wage labour intensive production methods with a qualitative leap depending on the growth in the total productivity of factors of production.