Focus on manufacturing: New industrial activity to boost local employment and revenues

As of mid-2013 the city of Al Ain, Abu Dhabi’s second-largest urban area, was in the early stages of an industrialisation drive that could completely transform the local economy. Under Plan Al Ain 2030 and the government’s long-term development strategy, the Abu Dhabi Economic Vision 2030, the city is slated to become a regional centre for aerospace, defence and agribusiness, among other activities. As well as contributing to economic diversification, a key objective is to create jobs for the rapidly expanding local population, which is expected to nearly double to 1m by 2030, up from more than 600,000 in mid-2012. At the same time, the government aims to preserve and maintain Al Ain’s traditional character and natural environment. “Al Ain will benefit from a considerable amount of aerospace and agricultural investment in the coming years,” said Ahmed Abdulla Al Jaberi, the strategic planning division manager of the Department of Municipal Affairs at Al Ain City Municipality. “That said, the area is an important cultural destination, and so we are focusing on supporting these new industries in a sustainable manner.”

Flight Plan

 Under Economic Vision 2030 the government has identified the aviation, aerospace and defence sector as a key engine of economic development. In 2010 two of the emirate’s largest aerospace players – Mubadala Development Company and Abu Dhabi Airports, both of which are state-owned – announced a plan to establish a large-scale aviation park in Al Ain. The 25-sq-km Nibras Al Ain Aerospace Park (Nibras) being developed around Al Ain International Airport, to the north-west of Al Ain City, is expected to eventually serve as a regional centre for the burgeoning industry. While the project is still in the early stages of development – the plan for the park runs through to 2060 – a number of firms have already set up shop in the area. Strata, a Mubadala subsidiary established in 2010, is a tier-one manufacturer of composite aerostructures for leading original equipment manufacturers such as Boeing, Airbus and Italy’s Alenia Aermacchi. Another Mubadala subsidiary, AMMROC (Advanced Military Maintenance, Repair and Overhaul Centre), which provides MRO services to the UAE Armed Forces’ aircraft, plans to relocate to a new purpose-built facility in Nibras by 2015. Several other organisations are either already operating in the park, or are expected to move there in the coming years, including the Horizon International Flight Academy and the Abu Dhabi Polytechnic, among others.

The Nibras project is forecast to result in the creation of more than 10,000 jobs in the region. Indeed, in the three years since it was established, Strata has already become one of the largest employers in Al Ain, with a workforce of more than 500 in early 2013, 35% of whom were Emiratis. “We are shooting to reach a 50% Emiratisation rate by 2015,” Badr Al Olama, CEO of Strata, told OBG. “Also, an estimated 80% of our current Emirati workforce is made up of women, which is in line with the government’s goal of empowering women.”

New Deals

Mubadala announced it had signed deals worth a total of $11.8bn for the local aerospace and defence sector in November 2013. The agreements with Airbus, Boeing, Rolls Royce, GE and the UAE Armed Forces should generate more than $7bn in aerostructures manufacturing work through 2030 for Strata; support the development of Mubadala’s capacity in composite and carbon fibre production and engine maintenance, repair and overhaul; build up partnerships enabling Mubadala to move into engine parts manufacturing; and extend its support for the UAE military.

Farm To Table

 In addition to the aerospace industry, Al Ain is expected to benefit from increasing investment in agribusiness and manufacturing. While much of Abu Dhabi is covered in desert, Al Ain is located in the middle of a large oasis. Consequently, the region has been a centre for agricultural production for many years, albeit mostly on a non-commercial basis. The expansion of agribusiness is a vital objective of the government’s agriculture development strategy, which was launched in the late 2000s and aims to formalise and commercialise farming activity across the emirate.