Market Trends of UAE Product Testing Lab Services Industry
This section covers the major market trends shaping the UAE Product Testing Lab Services Market according to our research experts:
The United Arab Emirates as a Business Hub
The country was sparsely populated in the 1960s. However, the population has increased since then. Though the nation’s GDP was heavily dependent on agriculture and fishing, it is now a modern trading economy with one of the highest per capita GDP. A lot of this can be attributed to the vast oil wealth, which was commercially explored in the 1960s and 1970s, with the help of government funding, resulting in numerous investments in various industries. The primary objective of these investments was to reduce the nation’s dependence on fossil fuels. The investments were made in construction, ICT, transport, and infrastructure projects. The relative political stability in the country, aided by a high quality of life and high tax incentives and support for business and small enterprises, has attracted significant amounts of FDI. The United Arab Emirates is geographically placed at the crossroads of East and West, which is beneficial for investors, as the country has huge potential to be a trading hub. Another major industry to attract investments is innovation and technology. Dubai’s Department of Economic Development decided to set up a dedicated incubator to support the rapidly growing SMEs (small and medium-sized enterprises), promising entrepreneurial ventures through all their stages of development.
Industrial Sector Holds Major Market Share
Industrial testing plays a prominent role throughout the various stages of product life cycle. These stages may range from R&D to qualification, to manufacturing and operations. The primary objective of industrial testing is to ensure the safety and efficiency of raw materials, components, and systems. Some of the most popular industry testing services include mechanical testing, metallurgic testing, chemical analysis, environmental and corrosion testing, endurance testing, electromagnetic compatibility testing, functional testing, non-destruction testing, and calibration testing. With the UAE market becoming increasingly regulated, the pressure on operators to ensure the safety and quality of their products is at an all-time high.
Industrial testing is the largest sector in the market studied. Considering the growing manufacturing sector, testing services have become a prominent part of the production process. Some of the most popular industries with a high dependency on testing services are the oil and gas fields, water supply and treatment, power, chemical and fertilizers, food processing, and cement industries. Moreover, the country is hosting World Expo 2020 in Dubai, under the theme ‘Connecting Minds, Creating the Future’. World Expos attract millions of visitors, and this is the first time it is being hosted in Middle East & Africa. Business collaborations are expected to increase post World Expo 2020.
