In the new age economic order, the UAE is already working on ways to increase its non-oil revenue from innovation and efficiencies in industrial processes, with a growing focus on new manufacturing industries and an expansion of its tourism sector. The aim is to reduce the proportion of GDP derived from energy revenue from about 30 per cent to 20 per cent in the next 10 to 15 years. This strategy makes the UAE more flexible to the sharp fluctuations in the global oil sector.

Based on this backdrop the Made in UAE Summit grows in its significance as it brings together the country’s top think-tank from the manufacturing sector. The experts who’ve led these companies to success beyond the shores of the UAE to different parts of the world shared their views on a very wide landscape from highlighting technology, presenting trends to revealing challenges faced in the UAE. The summit proved to be an industry reckoner for those who are new, are at the threshold of setting up new business or are planning to venture into the specialist sector.  

As one of the leading boat and yacht makers in the UAE with a global standing of over 35 years, Gulf Craft’s CEO Erwin Bamps led the attendees through a thought provoking scenario of the UAE’s manufacturing sector in a global context.

Gulf Craft CEO, Erwin Bamps, keynote speaker at the Made-in-UAE Summit

He opened his address with a rather unusual remark, “There’s still a bit of an image problem when you go out to the other markets and talk about the manufacturing expertise in the UAE. Firstly that’s because of the lack of awareness about the manufacturing industry of the UAE. Secondly, there are still a lot of question marks about the kind of products that are made in the UAE.”

He added, “When compared to a Made in Germany tag which evokes thoughts of a quality engineered product or a Made in Italy product that epitomizes style or a Made in France product that conjures in the minds of the people rich delicious cheese or Made in Spain which brings the best crafted leather products etc.

That’s because they are all from established markets with identifiable values. Through education and experience shoppers around the world understand concepts of brand value and brand perception. And unfortunately, Made in UAE to most shoppers worldwide draws a blank page.”

Erwin was equally excited to add that though the UAE products currently lack identity, it highlights the absence of a base to build an image in the minds of the people, and it thus opens up a world of opportunities for manufacturers. That’s because they have the freedom to shape and create a new brand image.  

Dubai – The logistics hub of the Middle East

Taking advantage of the position of Dubai as a Logistics Hub in the UAE and the Gulf region, manufacturers can have easy access to the world markets through a fine network of roads, ports, airports and soon trains in the near future. This geographical plus adds greater value to manufacturing operations thereby providing businesses a great home ground to shape their ventures.

Add to that the ever growing markets in the Gulf, Africa and MENA region, where the demand for complex and diversified products has been on the rise. This trend is further complemented by the shifting fortunes in the world as dollar wealth is moving East at a steady pace from Europe and the USA. Today the Asian region has a lot more billionaires and millionaires.   

As such UAE in the past used to be on the edge of mature markets, today it’s more or less in the middle of the new age markets of the new world order. One can see dollar spending has been on the rise as much as the growth of the luxury segments like yachts and boats. Today, Asia is the cynosure of all marketers from a multitude of luxury sectors including niche segments.   

“So, today when we look at the manufacturing sector in the UAE and the Gulf region we don’t just cater to the local consumption but find ourselves in the middle of a larger mature market in the Global context” added Erwin.

Quality human talent for a Knowledge based economy

Shifting focus from logistics to yet another critical area – the talent pool available. Over the years UAE and Dubai in particular have made great strides in promoting itself not just as a great leisure and shopping  destination but also as a place to live, build a career and stay with families for a long time. The government’s outlook has helped to shape education, healthcare, real estate and other associated infrastructure that has raised the quality to life to an international level. This overall development has underpinned the efforts in attracting highly qualified professionals from around the world.    

Thus businesses in the UAE appeal well to global talent and attracts them to relocate to the region to live and work in highly specialized professional work environments. Today, the UAE is home to all kinds of specialized personnel from different sectors and organizations to retain their workforce, build their skills and update their knowhow.

The country’s aim is not just mass production, but promote high value industries. In the recent months, the announcements have been around the creation of a “Knowledge Based Society” on similar lines like Singapore and Silicon Valley where economies are based on creation of added value through additional engineering and design value engineering in manufacturing. So, it’s not just general manufacturing but a highly specialized manufacturing that caters to niche needs of high value oriented industries or sectors.

‘Out of the Box’ thinking leads the way

In the same light one must also pay attention to the way Dubai is shaping it’s brand image to the world at large. It has established an image of being a place where “Everything’s Possible”, for which it banks on its strength of the talent available. People who can think ‘Out of the Box’, create new companies, shape new structures and start new initiatives. Today, Dubai represents a city where “Sky is the Limit”. This creates a curiosity in the minds of the people around the world, prompting them to visit and explore. When they arrive, what they perceive as brand image is further bolstered – things that happen in Dubai don’t seem to happen elsewhere in the world.  So, the idea of Arabian hospitality mixed with luxury and a memorable experience to carry back all shapes the brand Dubai. 

“It is the very same ‘Out of the Box’ thinking and original approach to entrepreneurship that fit with Dubai’s image and I believe that the brand equity Dubai has created will reflect positively on the development of the manufacturing sector.  Now people will come to Dubai because they want to be part of a very pragmatic and ambitious environment where there are wide ranging opportunities than anywhere else.”    

Manufacturing to contribute to 20% GDP in the UAE

In the recent months the UAE Ministry has increasingly stressed upon the need to increase share of the manufacturing sector in the country’s GDP to nearly 20 per cent by 2021. By 2025 the contribution will increase to 25%. So, there is clearly an industrialization strategy that’s being shaped at the Federal level which foresees a sustainable growing society.    

This is in fact great news for the companies who are involved in manufacturing and opens up a positive environment for those who are planning to venture into the Gulf region in manufacturing.

Erwin added, “We have been until recently a non industrial country, but there is now an increasing focus on industrialization as another pillar of growth. With this new outlook there is greater support for the sector’s growth. The fact that we are customizing as well as having very complex engineering platforms for our high-end products is a testimony of the government’s new outlook.”  

“And even for our smaller craft which are standardized products we need to be always thinking ahead and look at the new trends in the global market.”

As a company Gulf Craft has adopted a data driven approach with the help of consultancies for the last 2 years. The company depends on a lot of data  analysis software to analyze every process internally because it helps in taking right decisions. And faster the data analysis, more data is utilized, more critical decisions are made taking the calculated risk into account thereby helping to steer the company in the right direction.

Changing a challenge into an opportunity

Reading the market trends correctly, analyzing the data rightly and the willingness to spearhead a business plan has been the very essence of any Dubai based entrepreneurship. It’s this kind of a calculated risk-taking business ethos that has always energized the UAE markets in helping it to survive the volatile conditions and sustain a steady growth.

In spite of the economic downturns, political challenges and every other adverse market condition over the last two decades, Dubai and the UAE has continued to grow. That’s because every challenge was converted into an opportunity, and that can be achieved by anticipating market demands and trends. Client’s response is also vital at times when it comes to choosing the right direction.      

Protection of intellectual property on top of the agenda

When a knowledge based society is taking shape, it is vital to protect the intellectual property. Experts come to Dubai and UAE’s specialized manufacturing and engineering facilities to create and invent. It becomes essentially critical to protect that kind of intangible assets and the knowledge base with a legal framework to file for patents in the UAE and protect them at a global level, like the patency laws that have been in place in Europe and in the US for many years.

Globalization – UAE businesses connecting to the world

Why set up a company in the UAE to export to the world? Is it possible to make your company, or your business part of globalization? Take the example of Silicon Valley which is an industrial hub but there isn’t mass production. High value added engineering is the key and that’s what sets Silicon Valley apart. It is the same with Dubai as a manufacturing location.

“But then there are the missing links like a sub contracting industry who could take care of proving high quality sub parts which we are producing in-house due to lack of qualified sub contractors.  I would say globalization wouldn’t make sense with increased focus on creating a business and manufacturing hub that would probably create cross pollination between all those different companies and create something unique. Some sort of a brewing ground of new ideas and manufacturing techniques.” added Erwin. 

 The drive of the UAE government is to be always ahead of the game from driverless flying taxis to lightning fast Hyperloops to the world’s tallest building. It seems every limit that’s out there is set further through innovation, thereby constantly striving to be the best in class. It’s this kind of a challenging environment that will attract manufacturers and companies to establish their operations in Dubai and in the UAE.

The arid environment makes the UAE the finest testing ground

The harsh local environment, the heat, the dust, the UV radiation, the salinity of the water and air all give UAE the definitive edge when it comes to being a manufacturing hub. That’s because any product that survives this rugged environment can face any kind of challenge in any other part of the world. Gulf Craft’s boats and yachts are made in the UAE and they can take on the challenges posed by any part of the globe.

The physical assets offered by the UAE are immense for manufacturers, not to forget the rich maritime heritage and together they offer greater benefits to the customer.     

Made in UAE, Managed by UAE

The growth of UAE based products have led to an even bigger demand – the management style and skills UAE has to offer the world. Names like DP World, Emaar are UAE based brands that started off establishing themselves as UAE brands responsible for landmark projects like Jebel Ali and Rashid Ports, Burj Khalifa to mention a few.

Their unprecedented success opened new frontiers of business and soon the UAE based companies were invited to manage challenging overseas projects and share their expertise worldwide. Today along with world class products, it’s knowledge and management skills that also gets exported from the UAE.

“Gulf Craft as a “Made in UAE” brand has achieved world wide acceptance in the last 35 years. Our boats and yachts sail all over the globe and continue to attract new customers in newer markets. Today UAE companies are of relevance to not only the region but also to the rest of the world.” said Erwin Bamps concluding his session during the Made in UAE Summit.

There’s a great opportunity that UAE as a manufacturing hub may very soon create an example for others elsewhere in the world. Made in UAE is no longer related only to the product, but also on how it is created and home companies are that manufacture it.