Jafza machinery manufacturing worth US$31 billion
Jafza has announced that companies in the Machinery and Equipment Manufacturing sector within the free zone have doubled trade volumes in the last five years, recording transactions worth US$31.3 billion in 2010, compared to just over $16 billion in 2005.
Commenting on the importance of the sector, Talal Al Hashimi, managing director, EZW-UAE Region said: "The Machinery and Equipment Manufacturing sector has demonstrated steady growth in the last five years. The industry within Jafza is made up of 1,219 companies and represents 20 per cent of the total number of companies operating in Jafza.”
According to the latest figures available, trade generated by companies in this sector made up half of Jafza's total non-oil trade during 2010.
The managing director’s comments come after a recently released Saudi American Bank Group (SAMBA) study which expects GCC economies to grow seven per cent in 2011, led by 5.7 per cent in the Kingdom of Saudi Arabia and 4-4.5 per cent in the UAE and Kuwait. A large part of the growth is to come from the infrastructure and industrial sectors.
According to a recent report by MEED, more than $300 billion worth of major projects are to be awarded across the Middle East through 2012. The projects are under construction or in bidding across the industrial, commercial, hospitality, residential and retail segments. These new projects are expected to be the key drivers of growth in the machinery and equipment sector in the region.