The first phase of the Dubai Investments Park was formally opened recently, an event indicative of the UAE's deep commitment to expanding foreign investments and making the country an unrivalled trade and industry hub in the Arab world.

The park is offering investors world-class infrastructure and high-tech facilities and services with lease options of up to 99 years for industrial, commercial and residential projects.

Dubai Investments Park Development Company (DIPDC), a wholly owned subsidiary of Dubai Investments, which is developing, managing and operating the park, expects investments of Dh3 billion ($816 million) to come in by the end of 2005.

Pro-investment policies and the establishment of 12 free trade zones countrywide have put the UAE in a position of strength. A Bank of Sharjah report estimates that revenue from the manufacturing sector climbed to $8 billion and contributed 12 per cent to GDP.

And while worldwide an economic slowdown prevails following a series of events including the impact of September 11 and Middle East tensions, the UAE has progressed and is optimistic of maintaining progress. Higher oil prices over several months have triggered greater government spending on infrastructure including free zones, ports and airports, and the conditions are conducive for local and foreign investors to consider industrial ventures. The secure environment that the UAE offers as well as high living standards and sophisticated basic infrastructure have also been factors determining readiness among foreign entrepreneurs to consider setting up operations in the country.

The UAE now has some 2,000 industrial units primarily manufacturing building materials, equipment and machinery, auto spare parts, chemicals, paper and metals. The free trade zones constitute a primary channel in the push towards greater industrialisation. Seaport and airport facilities have proved vital to making these zones truly viable. The Economist Intelligence Unit forecast that the UAE's overall exports would expand from $44.9 billion in 2002 to $46.4 billion this year.

Visionary and opportunist UAE businessmen are making it easier to achieve economic diversification. A Dubai-based group plans to set up in the emirate a $400-million fertiliser plant that will use feedstock from the Dolphin project when gas flows in from Qatar in 2005. The fertilisers will be exported, reducing the country's dependence on oil income.

There is no shortage of entrepreneurial ideas. Dubai Investment Company is to carry out a feasibility study for a float glass plant, which, if it materialises, will be only the second one of its kind in the region after a factory in Saudi Arabia.

Altajir Glass is investing $149 million to expand its glass bottle plant in Dubai. Its plant at the Jebel Ali Free Zone exports 95 per cent of its production to more than 60 countries and its clients include Pepsi Cola and Coca-Cola. The expansion in two phases will raise production from 1.5 million bottles to 4.5 million bottles.

Ras Al Khaimah tiles and sanitaryware manufacturer RAK Ceramics has outlined plans for a new sanitaryware plant at its Ras Al Khaimah base. Its tiles plant in China is nearing completion and a sanitaryware plant is under construction in Bangladesh.

The company's sales turnover from its local plants was in excess of $200 million in 2002 against $175 million in the previous year. Exports accounted for more than 60 per cent of sales, with the European segment making up 40 per cent of overseas sales and the Middle East 35 per cent. Importing countries included the US, Canada and Australia.

Tabreed's (National Cooling Company) reported a significantly higher profit for 2002 and is expanding beyond the UAE. It has emerged as an attractive proposition for investors within the country and abroad.

The company increased its reach within the UAE with the completion of phase one of two district cooling schemes servicing area 029, AI Muroor, and area 030, Zayed Sports City, in Abu Dhabi.

Dubai-based Al Huraiz, well known for its Everhot water heaters, plans to diversify into the manufacture of air conditioners.

The company recently began marketing window and split air conditioners made abroad by reputed manufacturers under its own specifications, but hopes to begin making them on its own at its Al Ghusais factory in Dubai.

The AC venture is the latest development at Al Huraiz where already the water heater plant is being expanded with an additional line. The company presently manufactures approximately 125,000 water heaters per year.

The Abu Dhabi Polymers Co (Borouge) is undergoing its first phase of expansion. When completed in 2005 it will raise annual production of polyethylene from 450,000 tonnes to 600,000 tonnes. The second phase to be completed by 2007 will double output.

Dubai Aluminium (Dubal) is in the process of upgrading its smelter capacity by another 174,000 tonnes per annum (tpa) to reach a total of 710,000tpa by 2006.

NeoPharma Co, the first pharmaceuticals plant in Abu Dhabi, has begun production. It will export its products to the Gulf states.

Dubai Cable Company (Ducab) is building a factory in Abu Dhabi in its first expansion outside its Dubai base. The factory, planned for commissioning by November 2004, is part of a Dh125 million ($34 million) investment that includes adding capacity at the cable maker's Jebel Ali plant. The Abu Dhabi unit coming up in Mussafah has been designed to raise Ducab's copper processing capacity to 60,000 tonnes from 35,000 tonnes.