Friday 17 December 2010

UAE manufacturing: Ashok Leyland joins a select club | beyondbrics: News and views on emerging markets | FT.com

The United Arab Emirates may be best known for Abu Dhabi’s oil and Dubai’s gaudy hotels, but the Arab world’s second largest economy can also boast a small but relatively successful manufacturing industry.

The latest coup is Ashok Leyland. The Indian truck and bus maker is setting up an assembly factory in the Al Ghail Industrial Area of Ras Al Khaimah, the northernmost of the seven semi-independent statelets that make up the UAE. The factory will be able to produce up to 1,000 buses a year, with the first one rolling out by January already.

Ashok Leyland’s decision to set up in Ras Al Khaimah is not a blip. Dubai and Abu Dhabi are the largest, and natural regional bases for many international companies, but Ras Al Khaimah and Sharjah, another northern emirate, are arguably the country’s manufacturing hubs.

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