The UAE’s manufacturing sector is expected to see “moderate growth” in 2012 and the medium-term, but the Eurozone crisis and the sanctions on Iran will limit the export markets for local products, analysts say.
“The UAE’s aluminium produce finds major usage in the automotive and construction sectors. Given that Europe is a major export market for aluminium produce, the Eurozone crisis will have a cascading impact on the demand for it,” said Virein Kumar Yadlapalli, an analyst with Frost & Sullivan.
The UAE is also a major re-export centre for Iran, which accounted for 20 per cent of exports and re-exports before the ban, he said. “Thus, sanctions would limit local production until new export markets are developed.”
No comments:
Post a Comment