Latest news with #Operation300bn
DW
6 days ago
- Business
- DW
Laptops, iPhones 'Made in Saudi Arabia': Hype or reality? – DW – 05/28/2025
Saudi Arabia and the UAE avoided high tariffs imposed by the US government. In the past, international companies often set up anew in low-tariff nations to avoid higher prices. Will it happen in the Middle East too? "Made in Saudi Arabia" — the suggestion has been hyped ever since US President Donald Trump imposed high tariffs on goods produced in China and other Asian countries. "Saudi Arabia should be sending their trade representatives to the Trump administration right now, asking, 'what was China providing you? Tell us what it is and we will make it in Saudi Arabia'," Ellen Wald, a historian and author of the 2018 book "Saudi, Inc.: The Arabian Kingdom's Pursuit of Profit and Power," told media outlet Middle East Eye last month. China and other countries, including Vietnam and Thailand, are all major centers for manufacturing with many multinational companies, from Adidas to Apple, making everything from laptops to tracksuits there. But in April, the Trump administration imposed higher tariffs on them. The US originally imposed tariffs of 46% on Vietnam, 36% on Thailand and 145% on China Image: AFP/Getty Images Other nations managed to escape the toughest Trump tariffs though. Most Gulf states, including Saudi Arabia and the United Arab Emirates, were only landed with 10% tariffs. One of the options companies have used to avoid high tariffs in the recent past has been to pivot to manufacturing in low-tariff nations. For many international businesses, this started a few years ago as US-China trade tensions grew — it's part of the reason why Vietnam and Thailand have been doing so well in this sector. Next "pivot countries" in the Middle East? Both Saudi Arabia and the UAE have been trying to diversify their economies away from oil and to advance manufacturing, especially in the high-tech sector. The UAE has Operation 300bn, which was launched in 2021 and refers to increasing the local industrial sector's contribution to national income to 300 billion UAE dirhams (€72 billion). Saudi Arabia has Vision 2030, with a similar focus on growing local manufacturing and industry. There have already been reports about some of the world's largest technology companies, including US brands Dell and HP, scouting sites for new factories in Saudi Arabia. Chinese firm Lenovo is building a computer and server assembly factory there and Saudi company Alat — state funded to the tune of around $100 billion (€88 billion)— is collaborating with Japan's Softbank Group on industrial robotics, that could later be used on assembly lines, addressing local labor shortages. The Saudis have apparently also been wooing China's Foxconn, a major supplier of Apple's iPhones, and Taiwan's Quanta, who make computers and computer parts for the likes of Dell. "Dozens of countries are pitching to take advantage of high tariffs on Asian countries that export to the US, in the hope that they will be able to penetrate the US market," David Butter, an associate fellow at the UK think tank Chatham House, told DW. Pivot has positives, negatives "And countries like Saudi Arabia could position themselves as relative safe havens for businesses seeking to escape higher tariffs or mitigate the uncertainties surrounding them," Nader Kabbani, director of research at the Qatar-based Middle East Council on Global Affairs, or ME Council, explained. Saudi Arabia has a lot of attributes that could help make that happen, Kabbani continued. "It has abundant natural resources, including and in addition to oil. It has a large domestic market. It is centrally located, serving as a bridge between Asia, Africa, and Europe," he told DW. "And its government actively supports economic diversification efforts. It also has reasonably well-developed infrastructure [and] is willing to attract migrant workers at all skill levels." US special envoy to the Middle East Steve Witkoff has said that if Gulf states worked together, the market 'could be much bigger than Europe' Image:The region does have some advantages, agreed Frederic Schneider, an independent policy consultant and a senior non-resident fellow, also at the ME Council. He added to Kabbani's list of advantages, the Gulf states' large logistics industry, low- or no-tax regimes and the fact that local currencies are pegged to a weakening US dollar, meaning their exports may become cheaper and therefore more competitive. But there's an equally long list of potential disadvantages, including some tough competition. "Existing manufacturing is still relatively underdeveloped and largely confined to sectors adjacent to the hydrocarbon sector," Schneider told DW. If the Saudis want to compete in high-tech manufacturing, they'll be up against countries like China, South Korea, Taiwan, Japan, Germany and Switzerland. In lower-tech sectors, they're competing against Malaysia, Indonesia and Vietnam. "And while these countries suffer from different disadvantages … they have decades of experience, an existing infrastructure and large domestic market and human capital pool," Schneider pointed out. Saudi Arabia and the UAE are balanced between main trade partner, China, and defense and military mainstay, the US, with a transactional approach that seems to appeal to President Trump Image: Royal Court of Saudi Arabia/AA/picture alliance There are other negative factors too, Schnieder continued. That includes growing cultural issues as more foreigners work in previously conservative Gulf communities, climate change causing the region to heat up faster than others, and ongoing geopolitical uncertainty around possible conflicts between, for example, Iran and the US. "Project risks are also sizeable," Schneider added. "While the region is keen to sport technological 'firsts,' many do not materialize." He pointed to unsuccessful drone taxis and travel via hyperloop as well as cryptocurrency investments gone wrong and abandoned or downsized construction projects. There has also been heavy criticism of Saudi Arabian plans by a group called Never Neom. "What exists [of Saudi plans] are vague investment announcements — mostly tied to foreign partnerships and projects still on paper," Never Neom writes on its website . The activist group, which protests grand plans for futuristic Saudi city, Neom, previously had a Facebook page blocked for "inauthentic behavior" connected to political opponents of the Saudi government. Still, the group's statements offer some of the only counter-arguments to all the more dominant paid content online about Saudi manufacturing prowess. Trade war trumps all So is it all just hype? The answer likely lies in the middle somewhere. Governments in Saudi Arabia and the UAE are certainly building more factories and seeing non-oil activities contribute more to national income every year. But even if there is a pivot of some sort to Gulf states, higher international tariffs and a possible trade war would still undermine any benefits, experts argue. Gulf states are running out of money to invest in their grand plans because of lower oil prices and in Saudi Arabia, domestic taxation has increased as a result. As Schneider pointed out, "that may endanger the cost advantage of special economic zones." A global slowdown will bring oil prices even lower as well as impact the region's role as a logistics hub, he argued. "A global trade war, the resulting economic slowdown and the loss of oil revenues would then likely outweigh any benefits that come from serving as a low-tariff hub for business anyway," Kabbani concluded. US-China tensions test ties between ASEAN members To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Edited by: Jess Smee
Hi Dubai
6 days ago
- Business
- Hi Dubai
Himatrix Group Opens AED33 Million Research and Training Centre in Dubai Industrial City
Himatrix Group has officially opened phase one of its AED33 million application laboratory, research, and training centre at Dubai Industrial City, marking a major milestone in the company's regional and global expansion plans. Spanning 45,000 square feet, the new facility is strategically positioned to tap into Dubai Industrial City's proximity to key logistics hubs, including Jebel Ali Port, Al Maktoum International Airport, and the upcoming Etihad Rail freight terminal. The centre will serve as a base for Himatrix Group's 100-strong workforce and support its recruitment of additional specialists to drive innovation across its operations. Himatrix Group, which includes subsidiaries such as Himatrix Measurements Equipment's and Icpro Technologies, aims to use the new hub to strengthen partnerships with global leaders in instrumentation engineering. These include Radwag, Sciex, Ametek, Kruss, and Wipotec. Nadeer Ali, Founder and Managing Director of Himatrix Group, said the facility will enhance service quality across multiple industries, particularly pharmaceuticals, by offering advanced solutions in metrology, analytical science, and physical testing. Dubai Industrial City officials welcomed the investment, highlighting its alignment with national strategies like Operation 300bn and the Dubai Economic Agenda 'D33'. Saud Abu Alshawareb, speaking on behalf of the district, said the facility showcases confidence in Dubai's industrial ecosystem and reinforces efforts to expand the UAE's manufacturing capabilities. Established in 2004, Dubai Industrial City is home to more than 800 companies and over 300 operational factories. It is one of 10 business districts under TECOM Group PJSC, supporting key sectors across the UAE's economic landscape. News Source: Emirates News Agency
What's On
22-05-2025
- Automotive
- What's On
ROX Motor announces partnership with W Motors to create NEVs in Abu Dhabi
Sponsored: This partnership will increase the UAE's industrial base, tech innovation and net-zero goals… ROX Motor, a global luxury new energy vehicle brand, has announced a strategic partnership with W Motors, the UAE's leading high-performance vehicle manufacturer, to bring production and assembly of its vehicles into the United Arab Emirates. The agreement, signed at Make it in the Emirates (MIITE) 2025, marks a major milestone in enhancing the regions manufacturing and supporting the UAE's industrial and sustainability goals. As part of this collaboration, ROX Motor will begin producing its vehicles – starting with the ROX 01 – at W Motors' new facility in Abu Dhabi. This move signifies the first time ROX vehicles will be manufactured outside of China, reflecting a commitment to local adaptation and regional resilience. 'This partnership accelerates our regional growth and aligns with the UAE's industrial strategies,' said Jarvis, founder and CEO of ROX Motor. 'Together with W Motors, we're building the future of sustainable mobility in the UAE and beyond. Ralph Debbas, founder and CEO of W Motors, added: 'We're proud to lead the manufacturing of ROX 01 in Abu Dhabi. This collaboration enhances our ability to provide advanced contract manufacturing and supports the UAE's ambition to become a global automotive hub.' The partnership supports key national initiatives including Operation 300bn, Industry 4.0, and Net Zero by 2050, reinforcing both companies' roles in shaping a sustainable and self-reliant automotive future for the region. In addition to local manufacturing efforts, ROX Motor is accelerating innovation through strategic technology partnerships in the UAE. The company recently entered a collaboration with Enercap to advance high-performance battery cell applications across its products, enhancing deployment and operational efficiency regionally and globally. ROX Motor has also signed an agreement with leading petrochemical company Borouge to explore joint research and development on advanced polyolefin materials for automotive use, further strengthening its localised supply chain and supporting the UAE's Operation 300bn strategy. Borouge collaboration brings advanced polyolefin innovation, enabling lighter, more durable interiors and exteriors tailored for everyday use – from bustling city streets to open desert. > Sign up for FREE to get exclusive updates that you are interested in
Mid East Info
20-05-2025
- Business
- Mid East Info
EGA and MoIAT sign agreement to utilise EGA Industry 4.0 expertise to accelerate adoption in UAE industry - Middle East Business News and Information
Emirates Global Aluminium, the largest industrial company in the United Arab Emirates outside of oil and gas, and the Ministry of Industry and Advanced Technology (MoIAT) today signed an agreement leveraging EGA's Industry 4.0 expertise to support the digital transformation of UAE industrial companies. The agreement was signed at Make it in the Emirates 2025 by His Excellency Omar Al Suwaidi, Undersecretary at MoIAT, and Abdulnasser Bin Kalban, Chief Executive Officer of EGA. HE Al Suwaidi said: 'EGA's recognition as a global leader in Industry 4.0 positions it ideally to help advance the UAE's industrial digital transformation. By sharing EGA's best-in-class expertise, we can empower UAE industries – including small and medium-sized enterprises (SMEs) – to become more globally competitive, resilient, and future-ready. This partnership directly supports the objectives of the National Strategy for Industry and Advanced Technology, driving sustainable growth and advanced technology transformation of our industry.' Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium , said: 'EGA is the UAE and the aluminium industry's first Industry 4.0 global lighthouse, and we have the opportunity and the responsibility to support MoIAT to accelerate the digital transformation of other UAE industrial companies. We are looking forward to sharing the knowledge we have gained from EGA's pioneering digital transformation programme, as another contribution to the achievement of the UAE's Operation 300bn industrial development strategy.' Earlier this year, EGA was designated a global Industry 4.0 Lighthouse by the World Economic Forum, the first in the UAE and in the global aluminium industry to achieve this distinction. Since 2021, EGA's digital transformation and Industry 4.0 programmes have delivered some $100 million in financial impact through more than 80 Industry 4.0 use cases. These range from using artificial intelligence to perform real-time quality checks of carbon anode production to developing predictive tools for market movements in key commodities. Almost 3,000 EGA employees have been upskilled in digital capabilities and ways of working. Under the agreement, EGA will support MoIAT in developing a mentorship programme to accelerate advanced technology adoption among UAE industrial companies, including SMEs. The programme will offer tailored practical guidance and technical support from EGA's operations and digital transformation experts.
Zawya
20-05-2025
- Business
- Zawya
Saudi's Immensa receives ‘Made in the Emirates' certification for energy spare parts
Saudi-based additive manufacturing company Immensa has received the 'Made in the Emirates' certification for a range of critical spare parts. The certified items include high-performance rotating parts essential to energy sector operations, where equipment uptime and reliability are mission-critical, the company said in a statement. 'By producing certified spare parts locally, we are reducing reliance on global supply chains, enhancing operational resilience, and contributing to the UAE's industrial strategy,' said Fahmi Al-Shawwa, CEO of Immensa. The 'Made in the Emirates' mark confirms that Immensa's components meet rigorous national benchmarks for quality and safety, supporting the goals of the Operation 300bn strategy. Immensa operates two DNV-certified additive manufacturing facilities in the UAE and Saudi Arabia, according to the company website. (Writing by P Deol; Editing by Anoop Menon) (
