RAK Chamber Study: High Performing Sector Accounts for 6.7% of Manufacturing Production in Ras Al Khaimah

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rak-glassRas Al Khaimah – UAE: Ras Al Khaimah Chamber of Commerce, the UAE’s second oldest chamber, has issued a study entitled “The Glass Panel Industry in the Emirate of Ras Al Khaimah”. The study uses current industry data from the companies operating in the sector, in addition to data issued by the Chamber and the Ras Al Khaimah Department of Economic Development. The study reviewed specific topics, the most important of which are the sector’s prominent features and its development options in RAK. The sector is one of the most successful in the Emirate, as is demonstrated by the remarkable growth it has achieved over the past three years, achieving sales growth of 11.5% during that period. High added value has been generated in the sector, and it has similarly gained a remarkable 6.7% share of total production of the manufacturing industry in the Emirate. It also represents 7% of RAK’s non-petroleum industries, giving it an important role in the Emirate’s economy, something that will continue in the future.

Dr. Ahmed Rashed Al Shemaili, the Assistant General Director of Commercial Service and Business Development Sector at the Chamber, stated that the industrial sector has always played a major role in the development of the Emirate’s economy, and the study arose from the desire to put the spotlight on high performing industries in the Emirate, and the vital role they play.

Rajaa Mohammed bin Juma, Head of the Economic Studies Section at the Chamber, noted that RAK’s glass panel industry has proved it is a very worthy industry that is growing rapidly. This has become clear from the key drivers addressed by the study, whether that’s the level of capital investment in the industry, around 258.3 Million Dirhams, or the production volume and the manpower committed to the industry, which amounts to more than 1,185 workers. The total cost of goods for the sector amounted around 150.3 Million Dirhams annually, with the total sales value topping 456.6 Million Dirhams, which represents a 6.7% contribution to manufacturing GDP in the Emirate.

Asem Bani Faris, Senior Economic Researcher at the Studies Section, noted that the added value generated by the glass panel industry reached 306.3 Million Dirhams, representing a record 67% of the total production value, with a strong export market comprising 52.5% of the industry’s total sales further demonstrating the industry’s competitive capability. As a share of non-petroleum commodities from RAK the sector also represents 7% of the total. The rapid growth of this industry and the associated sales increase that companies are experiencing, has resulted in 433 Million Dirhams worth of sales to date this year – an increase of 11.5% in just three years. All of which is a clear indicator of its success, the potential investment opportunities, and its vital role in the growing the manufacturing industries contribution to Ras Al Khaimah’s GDP.

The current success being enjoyed by the glass panel industry has also been strongly influenced by Ras Al Khaimah’s open and forward-looking governmental policies and the positive reaction of industry investment organisations. The Emirate’s competitiveness in terms of raw materials, affordable start-up costs, the support of the free zones, in addition to the development infrastructure and the available telecommunication and finance support have all contributed to the creating an environment that encourages success.