In the heart of the bustling metropolis of Dubai, an industrial marvel is quietly but significantly shaping the global business landscape. Dubai Industrial City, an ambitious project under the visionary leadership of the United Arab Emirates, is becoming a vital hub for industrial and manufacturing activities in the region and beyond.
DIC’s success story is underpinned by a visionary approach that aims to not only establish it as a regional industrial hub, but also position it as a global player.
On a recent media FAM visit to DIC, selected African journalists had the privilege of sitting down with Saud Abu Alshawareb, the Executive Vice President of DIC, to gain invaluable insights into how this industrial powerhouse is shaping the global business landscape.
Strategic Location
One of the key factors contributing to the success of DIC is its strategic location. Situated in the heart of Dubai, it offers easy access to major transport routes, including the Dubai-Hatta Highway and Sheikh Mohammed Bin Zayed Road. This central location allows companies in DIC to efficiently connect with key markets in the Middle East, Asia, Europe and Africa.
A Hub of Industrial Excellence
Dubai Industrial City (DIC) is not just a cluster of factories and warehouses. It represents a well-thought-out ecosystem designed to foster industrial growth, innovation, and sustainability. The city covers a vast expanse of land, and within its boundaries, a diverse range of industries has found a home.
According to Saud Abu Alshawareb, Dubai Industrial City is part of TECOM Group. TECOM Group is public listed company, which provides an enabling industrial ecosystem with integrated offerings of land, workers’ accommodation, and warehousing facilities. It is part of the Dubai holding, within which is made up of ten business parks and Duabi Industrial City is part of.
The other nine parks are the Dubai Media City, Dubai Internet City, Dubai District City, Dubai Science Park, Dubai International Academy City, Dubai Knowledge Park, Dubai Production City, Dubai Studio City, Dubai Outsource City.
He revealed that in TECOM, “we focus on separate different sectors, we cover the full sectors of that as part of Dubai D33 economic agenda priorities and we believe that we are a very important player towards the growth of the economy of Dubai”.
Diverse Industry Clusters
DIC is home to over 250 companies across various industry clusters. With this being known, Mr. Alshawareb noted that DIC is a full ecosystem that really helps companies to establish their businesses, factories and can work efficiently within the same city.
“We have factories in six main zones, the first zone encompass sectors such as a food and beverage then we have basement (base metals), we have mineral, which is mainly building material, chemical transport and machinery equipment”, he added.
This diversity, he indicated, has created a melting pot of ideas and expertise, propelling Dubai into a global industrial player, adding again that in terms of business partners they have more than 800 of them operating in DIC with more than 300 operational factories, while 100 factories under construction and hopefully in the coming three years will exceed 500 operational factories.
As part of the ecosystem, DIC provides Mazar Baha agreement, which is land with infrastructure and development, to enable companies build their factory. This, Mr. Abu Alshawareb said, is a long term agreement. Additionally, the DIC provides brand-new warehouse facilities with over 1000 warehouse units and a total leasable area of almost 800,000 square meters of usable space.
According to Mr. Abu Alshawareb, the leasing system provides the infrastructure to the companies and has a maximum lease term of 41 years, with a 30-year lease. As a result, “we lease the plots rather than selling them. You mostly pay your rent on a long-term lease”.
Non-Free Zone Area
Mr. Alshawareb further revealed that DIC is a mainland operation, but “we are non free-zone but the good thing that the government of the UAE, two years ago, launched a new policy where factories can operate a mainland without having a local partner”.
This, he said, will help multinational companies to establish their businesses in the Mainland and would have a UAE based operation, where it will be a UAE company and will be benefiting from the free trade agreements the UAE has signed with different countries around the world.
Companies will have the Main UAE label, which will help your product to reach those markets without the conflict. So this really helps to boost exporting of the UAE all over the world. And the first half of this year showed that a record year had been achieved, in terms of exporting.
A Sustainable Approach
Dubai Industrial City has adopted a forward-thinking approach to sustainability. Sustainability is not just a buzzword at DIC; it’s a way of life. Mr. Alshawareb shed light on the city’s commitment to resource efficiency, environmental responsibility and the use of renewable energy sources. Sustainability, he emphasised, is not just a corporate social responsibility but a guiding principle.
In May, this year, he asserted that his outfit signed an MoU with the Ministry of Industry and Advanced Technology (MoIAT), to deploy Industrial Technology Transformation Index (ITTI) in the manufacturing sector.
As part of the MoU, the DIC will be conducting workshops with the ministry to evaluate the companies that have the wider society. This also includes an audit that will be conducted to see how companies can be more automated in their operation.
This, he said, “We believe that the more you automate, the more you will be sustainable, it will also reduce your carbon emissions, it will be to reduce your wastage outcome. It would recycle some of your waste for reuse and the system will be operational again.
Innovation and Research
One of the key takeaways from the discussion was the emphasis on innovation and research. DIC has created dedicated zones to foster research and development, with keen focus on collaboration between academia, research institutions and industrial players.
This, Mr. Alshawareb believes, is instrumental in driving the breakthroughs required to remain competitive in today’s fast-paced industrial landscape. This synergy is driving breakthroughs in technology and process optimisation.
Global Impact
Dubai Industrial City’s reach extends far beyond its physical borders. Its impact is felt globally through the products and services produced within its industrial clusters. From machinery that powers factories worldwide to chemicals used in various industries, DIC plays a significant role in global supply chains.
Its strategic location in the heart of Dubai offers easy access to major transport routes, making it an ideal choice for businesses looking to connect with key markets in the Middle East, Asia, Europe and Africa.
Support for SMEs
Small and Medium-sized Enterprises (SMEs) are the backbone of any thriving economy. DIC understands this and has developed programs and initiatives to support the growth of SMEs. By providing affordable infrastructure, business support services and access to a network of industry players, SMEs can flourish within the city.
Losing Your Business/Bankruptcy
In DIC, when it comes to losing business, the government has some policies made, which is the bankruptcy policy that is legalised. There is a law for it and companies are entitled to it, when they are going through tough time.
Mr. Alshawareb cited the COVID-19 Pandemic as an example saying, even though companies with the Dubai Ecosystem were not greatly affected by COVID-19 Pandemic, there were incentives to help them bounce back. These include licensing cost, visa cost, some waiver on rent payment plan flexibility and grants on a case by case basis.
To him, during the pandemic, the companies in DIC even offered new markets. They exported from Dubai to new countries that they were not exporting before COVID. Since then, those countries have become regular customers to those companies.
Having said that, Mr. Alshawareb feels it is imperative that any business experiencing loss or bankruptcy should go through the process to assist or alleviate their situation and not focus on quick profits when managing and operating in an industrial city.
“We are really patient in doing business because we know what goes into investing and building a factory. Those are big investments and the returns takes longer time, compared to other sectors. But at the same time we have patience with companies who are struggling. We are patient and we can support them with the incentives that I’ve mentioned, during COVID. So when companies are in good days we support them”, he explained.
Dubai Industrial City is more than a mere industrial area; it’s a testament to Dubai’s commitment to sustainable growth, innovation and global impact. As it continues to expand and diversify, it is set to shape the global business landscape in ways that will be felt across industries and borders. In a world where industrial transformation is key to economic success, Dubai Industrial City stands as a beacon of progress.
In a subsequent development, Nutridor, a leading food and beverage (F&B) company under TGI Group, has launched its first state-of-the-art dairy production facility in the UAE at Dubai Industrial City, part of TECOM Group PJSC.
The newly launched facility represents an investment of AED 75 million and will serve demand for Nutridor’s high-quality dairy products under the ‘Abevia’ brand. The new dairy facility has a total built-up area of 100,000 Sq.ft. and was developed in less than a year, including the installation of the latest technologies and innovations in dairy manufacturing to ensure that Abevia continues to deliver high-quality products to its customers. The commencement of commercial operations from the factory will double Abevia’s production capacity to 120,000 litres of milk a day.
The factory’s inauguration ceremony was attended by distinguished guests, including His Excellency Mohammed Mousa Alameeri, Assistant Under-secretary for the Food Diversity Sector at the Ministry of Climate Change and Environment of the UAE; His Excellency Helal Al Marri, Director-General of Dubai Department of Economy and Tourism (Dubai DET); His Excellency Eng. Dawood Abdulrahman Al Hajri, Director General of Dubai Municipality and His Excellency Mohammed Dansanta Rimi, Ambassador of the Federal Republic of Nigeria, Embassy of Nigeria in UAE.
Also in attendance were – Mohammed Al Kamali, COO of Manufacturing & Export Development at Dubai Economic Development Corporation (DEDC); Abdulla Belhoul, CEO of TECOM Group PJSC; Saud Abu Alshawareb, Executive Vice President of Industrial at TECOM Group PJSC; Abdelrahman Al Hosani, Director of Export Service at Dubai DET; Saleh Lootah, Chairman of UAE Food & Beverage Manufacturers (FBMG) and Sankha Biswas, CEO of Nutridor.
“Commenting at the launch, Mohammed Al Kamali, COO of Manufacturing & Export Development at DEDC said, “The inauguration of Nutridor’s facility underscores the steadfast support of TECOM Group PJSC and Dubai Industrial City in their commitment to fostering a conducive environment for new ventures, which contributes directly to Dubai’s economic diversification, in line with the Dubai Economic Agenda, D33.
“As Dubai’s Department of Economy and Tourism strives to harness the collective support of its stakeholders and partners to drive forward this visionary Agenda to enhance the competitiveness of the emirate’s manufacturing sector, the newly launched state-of-the-art dairy production facility represents a significant initiative and investment, creating an environment that nurtures entrepreneurship, embraces innovation and catalyses economic expansion.
We are committed to supporting similar growth and investment as they are instrumental in shaping Dubai’s economic progress and contributing to the sustainable growth of the emirate.”
The factory will help to deliver value-added dairy products, supporting Nutridor’s goal of reducing import reliance and enhancing its position in the regional F&B sector. Nutridor estimates revenues of AED 110 million from the factory’s operations.
Commenting on the new factory on behalf of Dubai Industrial City, Saud Abu Alshawareb, Executive Vice President of Industrial at TECOM Group PJSC, said: “Localising manufacturing activity in the F&B sector is paramount as economic and ecological conditions evolve around the world. It is a critical lever to unlock enhanced food security, economic growth, and positive environmental impact at a global scale.
“Nutridor’s factory at Dubai Industrial City is a strategic move towards self-sufficiency in the F&B sector and its geographically strategic location within our district will help to unlock greater nutrition security for local and regional populations, aligning with the goals of the UAE’s National Food Security Strategy 2051.
“The factory also reiterates Dubai Industrial City’s contribution to government strategies aimed at elevating the manufacturing sector’s GDP contribution, such as Operation 300bn, Make it in the Emirates, and Dubai Economic Agenda ‘D33’. A collaborative and business-friendly ecosystem must be championed to leverage local competencies and export the ‘Made in UAE’ brandmark to new geographies and Dubai Industrial City remains committed to nurturing this environment.”
Local competencies
Nutridor has a vast network of operations in the Middle East and Africa region, with customers in over 15 countries, including the GCC nations, Jordan, Lebanon, Angola, Gambia, Ghana, and Senegal. The new Abevia factory at Dubai Industrial City will create over 200 new direct and indirect jobs, underscoring the commitment to nurturing Emirati talent and contributing to D33’s overarching objectives of economic expansion and diversification by Nutridor, which aims to secure In-Country Value (ICV) certification in the UAE in 2023.
Commenting on the factory’s launch, Sankha Biswas, CEO of Nutridor, said “This facility represents a pivotal juncture for Nutridor and Abevia that will allow us to manufacture our products locally and fulfil the region’s burgeoning demand for high-quality dairy products.
“We are committed to contributing to the food security goals of the UAE. The UAE also has a growing population with an increasing demand for high-quality food products and we stand as flagbearers for the ‘Make it in Emirates’ initiative.
Abevia is dedicated to meeting the highest standards of quality and safety for its products, adhering to the rigorous standards set by Nutridor, the Dubai Municipality, and the UAE government. We will seek to continually grow and expand our product offerings.”
In line with the UAE Net-Zero 2050 strategy, the facility has been designed to ensure zero waste and will use solar power to meet 100,000 kilowatt-hours’ worth of its energy requirements. Its strategic location within Dubai Industrial City – close to Al Maktoum International Airport, Jebel Ali Port, key national highways and soon, an Etihad Rail freight terminal – will provide greater access to new markets for Abevia.
Nutridor is avoiding 8,144 tonnes of carbon emissions – equivalent to removing 1,759 cars from the roads or planting 135,735 trees over a decade – by moving its manufacturing base to the district.
Abevia was awarded ‘Superbrands’ status in the UAE in 2022 and 2023 in recognition of its excellence in quality by an independent panel of experts and consumers, making it one of the youngest brands to achieve the recognition. Furthermore, in its pursuit of achieving the highest international standards in the industry, Nutridor also recently received the coveted Food Safety System Certification FSSC 22000, a benchmarked standard of the Global Food Safety Initiative (GMSI).
Established in 2004, Dubai Industrial City is one of the region’s largest industrial manufacturing and logistics hubs. It is home to more than 800 customers and 300 operational factories and has been a catalyst for the expansion of the UAE’s industrial sector with a world-class master plan divided into strategic sector-focused zones, including F&B that mitigate supply chain inefficiencies and wastage.
Dubai Industrial City is part of TECOM Group’s portfolio of 10 business districts, including Dubai Internet City, Dubai Media City, Dubai Studio City, Dubai Production City, Dubai Science Park, Dubai Knowledge Park, Dubai International Academic City and Dubai Design District (d3).
