The report issued by Dubai Statistics Center (DSC) stated that the Producer Price Index of Manufacturing Sector increased by 2.47% during the fourth quarter of 2020 compared to the third quarter of 2020, as it is increased by 2.59% compared to fourth quarter of 2019.

The Manufacturing Sector is a leading in Dubai’s economic diversification policy, as Dubai is steadily progressing towards the development of an advanced and sustainable manufacturing sector, in light of the presence of opportunities for investment and growth, the availability of laws and legislation, specialized industrial cities, advanced industrial infrastructure, as well as large and sophisticated airports and ports that can help in exporting manufacturing products abroad. The Manufacturing Sector possesses the third place, with a contribution of 10.6% of the Gross Domestic Product (GDP) of the Emirate of Dubai during the first six months of 2020 (at fixed prices). The quantitative index of this Sector’s products is an important index, as it reflects the development in the volume of local industrial production and maximization of national exports.

|Quarterly PPI of Manufacturing Sector (2018 = 100)
(Fourth Quarter of 2019 – Fourth Quarter of 2020)

|Manufacturing Sector Producer Price Movement during the Fourth Quarter of 2020 Compared to the Third Quarter of 2020

Quarterly, the efforts of the United Arab Emirates government in combating the “COVID-19” pandemic have paid off, as the government has taken all proactive measures to address any potential repercussions from the spread of the virus on various health, economic, educational and other levels. Further, the UAE government developed motivational economic plans at the federal and local levels to ensure the continuity of the development process, which contributed to the continuance of recovery in the movement of industrial production of Dubai. The Producer Price Index of Manufacturing Sector increased by 2.47% in the Fourth Quarter of 2020 compared to Third Quarter of 2020, as a result of the increase of production of the following sectors: Increase of Fabricated Metal Products, Except Machinery and Equipment by 23.13%, which boosted the PPI by 2.63 points, increase of Other Manufacturing by 57.83%, which boosted the PPI by 0.61 points, increase of Furniture by 21.23%, which boosted the PPI by 0.60 points, increase of Other Non-Metallic Mineral Products by 9.98%, which boosted the PPI by 0.55 points, increase of Rubber and Plastics Products by 13.24%, which boosted the PPI by 0.49 points, increase of Machinery and Equipment N.E.C. by 8.64%, which boosted the PPI by 0.46 points, increase of Manufacture of Basic Metals by 2.81%, which boosted the PPI by 0.37 points, increase of Electrical Equipment by 7.79%, which boosted the PPI by 0.36 points, increase of Wood and Products of Wood and Cork, Except Furniture by 8.83%, which boosted the PPI by 0.27 points, increase of Motor Vehicles, Trailers and Semi-Trailers by 16.35%, which boosted the PPI by 0.20 points, increase of Repair and Installation of Machinery and Equipment by 3.17%, which boosted the PPI by 0.19 points, increase of Food Products by 1.17%, which boosted the PPI by 0.14 points, increase of Tobacco Products by 7.00%, which boosted the PPI by 0.09 points, and increase of Refined Petroleum Products by 2.54%, which boosted the PPI by 0.08 points.

On the other hand, the production of other sectors decreased compared to the Third Quarter of 2020, as the production of the following sectors decreased: Wearing Apparel decreased by 47.05%, which reduced the PPI by 3.61 points, Printing and Reproduction of Recorded Media decreased by 7.12%, which reduced the PPI by 0.31 points, Beverages decreased by 15.65%, which reduced the PPI by 0.29 points, Chemicals and Chemical Products decreased by 2.19%, which reduced the PPI by 0.16 points, Basic Pharmaceutical Products and Pharmaceutical Preparations decreased by 17.32%, which reduced the PPI by 0.11 points, Textiles decreased by 25.32%, which reduced the PPI by 0.08 points, Leather and Related Products decreased by 28.37%, which reduced the PPI by 0.01 points, and Paper and Paper Products decreased by 0.09%.

Whereas the production of Other Transport Equipment remained stabilized at the Fourth Quarter of 2020 compared with the Third Quarter of 2020.

| Manufacturing Sector Producer Price Movement during the Fourth Quarter of 2020 Compared to the Fourth Quarter of 2019
The PPI of Manufacturing Sector increased by 2.59% in the Fourth Quarter of 2020 compared to Fourth Quarter of 2019, as a result of the increase of production of the following sectors: increase of Food Products by 29.34%, which boosted the PPI by 2.69 points, increase of Fabricated Metal Products, Except Machinery and Equipment by 18.04%, which boosted the PPI by 2.14 points, increase of Wearing Apparel by 69.50%, which reduced the PPI by 1.67 points, increase of Electrical Equipment by 27.43%, which boosted the PPI by 1.08 points, increase of Manufacture of Basic Metals by 7.64%, which boosted the PPI by 0.95 points, increase of Other Manufacturing by 68.38%, which boosted the PPI by 0.68 points, increase of Wood and Products of Wood and Cork, Except Furniture by 25.43%, which boosted the PPI by 0.67 points, increase of Refined Petroleum Products by 1.73%, which boosted the PPI by 0.06 points. increase of Basic Pharmaceutical Products and Pharmaceutical Preparations by 11.67%, which boosted the PPI by 0.06 points, increase of Rubber and Plastics Products by 1.14%, which boosted the PPI by 0.05 points, and increase of Furniture by 0.70%, which boosted the PPI by 0.02 points.

On the other hand, the production of other sectors decreased in the Fourth Quarter of 2020 compared to the same quarter of 2019, as the prices of the following sectors decreased: Chemicals and Chemical Products decreased by 34.35%, which reduced the PPI by 3.75 points, Repair and Installation of Machinery and Equipment decreased by 15.15%, which reduced the PPI by 1.11, Printing and Reproduction of Recorded Media decreased by 16.34%, which reduced the PPI by 0.79 points, Other Transport Equipment decreased by 22.22%, which reduced the PPI by 0.71 points, Motor Vehicles, Trailers and Semi-Trailers decreased by 19.33%, which reduced the PPI by 0.43 points, Tobacco Products decreased by 16.11%, which reduced the PPI by 0.26 points, Beverages decreased by 8.76%, which reduced the PPI by 0.15 points, Paper and Paper Products decreased by 10.20%, which reduced the PPI by 0.15 points, Machinery and Equipment N.E.C. decreased by 2.35%, which reduced the PPI by 0.14 points, Other Non-Metallic Mineral Products decreased by 1.27%, which reduced the PPI by 0.08 points, Leather and Related Products decreased by 7.74%, and Textiles decreased by 0.32%.

| Manufacturing Sector Producer Price Movement during 2020

Annually, the PPI of Manufacturing Sector decreased during 2020 compared to 2019, as the prices of the following sectors decreased: Chemicals and Chemical Products decreased by 25.97%, which reduced the PPI by 2.60 points, Other Non-Metallic Mineral Products decreased by 15.84%, which reduced the PPI by 1.03 points, Other Transport Equipment decreased by 17.65%, which reduced the PPI by 0.53 points, Rubber and Plastics Products decreased by 10.77%, which reduced the PPI by 0.47 points, Motor Vehicles, Trailers and Semi-Trailers decreased by 27.00%, which reduced the PPI by 0.47 points, Furniture decreased by 13.49%, which reduced the PPI by 0.45 points, Repair and Installation of Machinery and Equipment decreased by 5.77%, which reduced the PPI by 0.38, Printing and Reproduction of Recorded Media decreased by 7.77%, which reduced the PPI by 0.35 points, Refined Petroleum Products decreased by 7.22%, which reduced the PPI by 0.23, Machinery and Equipment N.E.C. decreased by 4.13%, which reduced the PPI by 0.23 points, Beverages decreased by 6.86%, which reduced the PPI by 0.12 points, Fabricated Metal Products, Except Machinery and Equipment decreased by 0.63%, which reduced the PPI by 0.08 points, Tobacco Products decreased by 4.29%, which reduced the PPI by 0.06 points, Textiles decreased by 3.62%, which reduced the PPI by 0.01 points, and Other Manufacturing decreased by 0.01%.

Whereas the production of other sectors increased in 2020 compared with 2019, as the production of the following sectors increased: Food Products increased by 28.80%, which boosted the PPI by 2.57 points, Electrical Equipment increased by 11.96%, which boosted the PPI by 0.50 points, Manufacture of Basic Metals increased by 3.24%, which boosted the PPI by 0.41 points, Basic Pharmaceutical Products and Pharmaceutical Preparations increased by 47.78%, which boosted the PPI by 0.81 points, Wood and Products of Wood and Cork, Except Furniture increased by 6.41%, which boosted the PPI by 0.16 points, Paper and Paper Products increased by 1.31%, which boosted the PPI by 0.02 points, Wearing Apparel increased by 0.24%, which boosted the PPI by 0.01 points, and Leather and Related Products increased by 12.31%.