Manufacturing’s contribution to the UAE’s GDP in 2003 was larger in terms of volume than in the previous year but its percentage share of the GDP dipped, largely because there was a big expansion in oil revenues as well as substantial growth in the real estate and construction sectors.  

According to UAE government statistics, manufacturing accounted for Dh36 billion ($9.8 billion) or 13.2 per cent of the GDP in 2003 when the Global Energy Studies Centre said the country’s crude oil exports fetched $21.5 billion, against $16.6 billion in the previous year.  Official figures put manufacturing’s GDP at Dh34.6 billion in 2002 (15.4 per cent of the total). The UAE’s GDP was said to have touched a record high of Dh273 billion in 2003.
The emirate of Dubai’s economy grew 6.2 per cent in 2003, its GDP reaching Dh73.3 billion. Mohamed Ali Alabbar, the director-general of the Department of Economic Development, said significant elements in Dubai’s growth were the fostering of industrial diversification and building of flourishing corporations, effective management of the free zones leading to considerable growth, development in the small-scale manufacturing sector and the extensive investment in mega projects especially in construction, healthcare and tourism,
Dubai’s spectacular growth over the years was not lost on American investment leaders, many of whom showed a keen interest in the business opportunities there. Officials from top US investment banks and institutions including Morgan Stanley, Credit Suissse First Boston and Bear Stearns took part in a conference on commercial and residential opportunities in Dubai.
The UAE’s potential as a Middle East industrial superpower attracted the interest of Russian businessmen. The Moscow International Business Association has announced plans to open a representative office in the UAE, and Russia’s Krasnador region decided to set up a trade centre in Dubai, joining other business regions that have established offices in UAE cities so as not to miss out on the action.
UAE business circles are heartened by reports that the private sector controlled nearly 47 per cent of the UAE’s economy in 2002 and pumped some Dh26 billion into the domestic economy in 2003, surpassing government spending. Private sector investments were Dh26.3 billion in 2002. It was not clear how much of private investments went into the overall infusion of Dh10.7 billion in the non-oil industrial sector in 2003.
Fresh investments are going into new factories and expansions of existing ones. One of them is an integrated steel plant that Al Ghaith Holdings, a family-owned firm with diverse business interests, is establishing in Abu Dhabi with US and German collaboration. The $140-million project is designed to produce some 500,000 tonnes of direct reduced iron and hot bricketed iron as well as 300,000 tonnes of billets.
Two Jebel Ali-based glass-manufacturing companies are in the process of expansions. Altajir Glass is investing Dh550 million over two phases, the first of which was completed in July 2003 at a cost of Dh100 million, raising capacity from 1.5 million to 2.5 million bottles per day.  The second phase, which is scheduled for completion by the end of next year, will take capacity to 4.5 million bottles per day. 
Altajir Glass is the second largest containerised cargo shipper out of Dubai after Dubai Aluminium (Dubal) and more than 90 per cent of its products are exported to 43 countries.
The other glass company, the Jebel Ali Container Glass factory (JACGF), is investing $30 million to put up its third production line to raise capacity by 33 per cent from 1.2 million bottles to 1.6 million bottles per day. It will produce larger and heavier bottles and wide-mouth food jars. An additional facility is being installed to meet the increased demand for decorated refillable bottles. It will double the decorating capacity from 500 bottles to a million bottles per day.  By the end of July of this year, the entire expansion will be completed.
JACGF exports 70 per cent of its annual production to the Gulf and countries beyond the region including Australia, Africa (east, west, north and south), Europe, the Far East and the Indian subcontinent.