Fujairah launches biggest textile factory in Middle East

The 44,250 square metre factory, which is estimated to make Dh140m in sales per year, has a capacity of 45,600 spindles and employs a labour force of about 225 people. Pawan Singh / The National

The emirate of Fujairah, known for its port and beachside resorts, now also boasts the biggest textile factory in the Middle East.

Producing 10,000 tonnes of cotton yarn each year, the plant was built at a cost of Dh225 million (US$61.2m) by the Azerbaijan government, in partnership with Fujairah Government.

“Within the UAE, we believe that Fujairah provided the best facilities to foreign investments,” said Raj Kumar Kak, the chief executive of United Textiles FZE, a new company running the plant located inside Fujairah Free Zone.

“Relatively low overhead costs and excellent road and connectivity were important factors that influenced our decision,” he added.

The 44,250 square metre factory, which is estimated to make Dh140m in sales per year, has a capacity of 45,600 spindles and employs a workforce of about 225 people.

The yarn will be used as a raw material for industries such as clothing and garment-making, as well as knitting furniture fabrics.

It will be exported to markets in Asia, the United States, North Africa, Europe and the Middle East.

The factory was abuzz yesterday with noise and activity. It smelled of fresh honey, and there were many big vats of yarn being spun.

Workers were going around the plant floor on roller skates to speed up the overall manufacturing process.

“Built with the latest technologies, the plant is the largest textile unit in the GCC and the Middle East,” said Mr Kak, in a speech addressed to Sheikh Hamad bin Mohammed, Ruler of Fujairah.

“By way of this plant, United Textiles looks forward to [making] a positive contribution to the regional economy.”

Fujairah is quietly growing its economy and expanding industries as different sectors receive heavy levels of investment from the local Government and partners located overseas.

The emirate’s port is set to expand rapidly as a 370km pipeline between Abu Dhabi and Fujairah is planned to be completed as early as next year, making Fujairah a strategic shipping, oil and gas hub.

The pipeline is expected to carry 1.5 million barrels of crude a day to eight tanks capable of holding 1 million barrels each.

Both the emirate’s tourism and retail sectors are also receiving billions of dirhams in investment as new projects are funded and once-stalled plans are revived.

Three major malls will either launch, or have already opened, in Fujairah this year, significantly adding to the retail landscape and ensuring residents no longer have to travel to other emirates to shop.

A Dh1.2 billion resort called Madinat Miramar in the Al Aqah area is also set to begin building and will eventually include restaurants, cafes, shops and a small lake.

Created in 1987, Fujairah Free Zone has become a popular base among manufacturing companies thanks to its close proximity to the port and infrastructure for exporting goods.

Companies there are 100 per cent foreign-owned, pay no tax and are not charged for repatriating profits overseas.

twitter: Follow and share our breaking business news. Follow us

iPad users can follow our twitterfeed via Flipboard - just search for Ind_Insights on the app.