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Index Price of Manufacturing Industry Products in Dubai Drops by 4.38% in 2019

Image: DSC Logo

​Image: DSC Logo

The manufacturing industry is considered one of the important activities for the economy as it meets the need of the local demand for industrial goods and services, which supports economic sustainability and contributes also to bringing foreign currencies through exporting locally manufactured products to the rest of the world, which enhances the ability of the economy in general. It is one of the vital and strategic sectors in the Emirate of Dubai, where it contributed with 9.5% of the total GDP of the Emirate during the first six months of 2019 (at constant prices). The price index for the products of this sector is important as it is related to retail and consumer prices. It also reflects the evolution in the prices of industrial producers, the evolution in the prices of national exports, its ability to compete in global markets, and the level of competitiveness between the prices of local products compared to the prices of the same imported products in the local market.

In order to release this index, the Dubai Statistics Center relied on the international statistical standards and methodologies adopted in this field, which cover all aspects and stages related to the release of this index and ensure its quality and its accurate reflection of reality in terms of selecting the goods that are included in the producer and consumer’s basket to reflect the evolution of prices in this sector and the methods of prices collection their sources, and their geographical distribution, so that all industrial producers are represented according to their activities and size, in addition to the aspects related to the mechanism of calculating the index price of the product and the mechanism of auditing and reviewing those numbers in order to ensure accuracy, consistency, and comparability.

The index price of manufacturing products fell by 4.38%, as the general index reached 100.23 during 2019 compared with figures of 2018, which reached 104.82, according to a report issued by the Dubai Statistics Center for the index price of manufacturing products in the Emirate in a new series starting from December 2018 to keep pace with the evolution of industrial production in the Emirate of Dubai. The Center periodically implements the statistical surveys necessary to update the goods and services included in the producer’s basket to keep up with the developments on industrial production and the methodologies followed in preparing the producer’s basket and calculating the index price in accordance with the International Standard Industrial Classification (ISIC4) and based on the updated data of the field survey of manufacturing facilities in the Emirate of Dubai.

The general index price of manufacturing products fell by 4.38% during 2019 compared with figures of 2018. This is due to the decrease in the prices of refined oil products by 8.92%, pushing up the general index price of industrial products by 1.27 points; i.e. the decrease of prices of this activity’s products contributed by 28.93% of the overall decline in the general index price of manufacturing products. The outputs of this activity are an important and vital entry point for most economic activities, which affects the costs of other activities, but in rates that depend on the importance of the outputs of oil products as an input to other activities. For example, the outputs prices of base or basic metals (basic mineral products), whose inputs are affected by the prices of oil derivatives, has fell by 8.89%, contributing to push up the general index price of manufacturing products to decrease by 1.29 points, and contributing with the refined oil derivatives together by 58.41% of the decline in the general index price of manufacturing products output.

Prices of other products also fell, including beverages by 4.73%, rubber and plastics by 4.45%, formed metalwork, other than machine and equipment, by 3.90%, automobiles, trailers and semi-trailers by 3.85%, leather and relevant products by 1.73%, tobacco products by 1.57%, machine and equipment installation and maintenance by 1.39%, food products by 1.36%, furniture by 1.07%, wood and cork products, other than furniture, by 0.69%, electrical equipment by 0.51%, other non-metallic mineral products by 0.48%, and recorded media printing and copying by 0.38%.

Industrial activities, whose output prices have declined in terms of the relative importance of its products value, of the total production of manufacturing industry constitute 81.86%; i.e. the price competitiveness of most of industrial outputs have strengthened, which is positive for activities and companies that rely on local outputs as inputs to their operations. This is also considered positive aspect for the consumer in terms of the outputs that can be consumed by end consumers.

On the other hand, prices of some industries rose compared with their figures of 2018. The prices of other manufactured industries rose by 9.54%, uncategorized machine and equipment rose by 2.16%, chemical products by 0.87%, textiles by 0.42%, and paper and paper products by 0.38 %.

Prices remained stable for garments, basic pharmaceuticals products, and other transport equipment.