Global experience and prospects

The benefits and possibilities for this financial sector may not continue to be left out in the worldwide arena. Thus, specialized companies for the manufacturing of complementary parts, where the modern automotive technologies are used, have been set up on the territory of the Emirate of Dubai since 2006. A crew of Korean entrepreneurs became an investor of this project. According to the assertion of overseas investors, the elegance of the jurisdiction of the UAE is stipulated by numerous key factors, in particular:

• possibilities of the specialized free trade zones;
• vast resource base;
• favourable ratio of cost and effectiveness in terms of transportation and energy costs.

Economic zone in the Dubai International Airport can serve as an example of profitable implementation of state initiatives in the discipline of mechanical engineering. The advanced concepts, which permit to preserve a stable income from investments and to reduce administrative, managerial, and working costs, are introduced here. A beneficial mixture of such factors as strategic location, bendy regulatory framework and high profit margins, has turn out to be the most important mechanism, which attracts massive quantity of investments into the mechanical engineering of the UAE.

It must be noted that the improvement of the mechanical engineering industry in the UAE takes place not only on the territory of the so-called free trade zones, however additionally past them. Federal and local authorities are striving to motivate the improvement of the national economy in every possible way, therefore making sure the development of the mechanical engineering everywhere.

Preconditions for the improvement of the industry

Among the primary motives that have turned the United Arab Emirates into the major trading and manufacturing hub, professionals notice increase in working capital and increase in the turnover of the manufacturing sector. In addition, this was contributed by the increased global logistics, which lead to the increase in the turnover of raw materials, complementary parts and spare components for a number of professional industrial equipment. All this together has allowed the discount of raw material and transportation charges of the global business.

Mechanical engineering in the UAE is experiencing a peak in business activity owing to the presence of the cutting-edge air and sea transport hubs, and the opportunity of implementation of the fantastic schemes of selling the industrial products and steady improvement of manufacturing capacities.

Author Name: Vlad Burtynsky