Dubai Industrial City (DIC), launched in late 2004 as part of the government's efforts to create a strong manufacturing sector in the emirate, has attracted 100 companies and sold 120 land plots to real estate developers.

Investment in about 100 industrial units is projected between Dh3 billion and Dh5 billion so far, said Khalid Al Malek, senior vice-president for industry and knowledge at DIC developer Tatweer, a division of Dubai Holding.

The estimated cost of developing commercial and residential units on the land already leased is about Dh1.2 billion.

Al Malek said manufacturers based within the industrial zone would benefit from strong demand for their products from the region's booming economies.

DIC is focusing on key sectors like machinery, steel, mineral products, food and beverages, and chemicals.

"There is a need for goods produced within the region to support growing economies of the Gulf. The construction sector will continue to develop and manufacturing is to here stay," Al Malek told Gulf News in an interview.

He said DIC is being developed as a township rather than an isolated manufacturing zone. Other components of the industrial city include a logistics park, academic cluster and residential areas.

Construction of facilities will begin in six months while delivery of land plots will start either in July or August. Dubai will spend Dh5 billion each in two phases on layout the DIC infrastructure.

Al Malek said DIC was a strategic initiative to diversify Dubai's economy as the industrial parks and free zones launched in the past were designed to provide logistics and light manufacturing facilities.

Several companies based in the Al Quoz industrial area are moving to DIC to take advantage of the low cost of land.

"Al Quoz has become a commercial area and it is costly for companies to operate from there. The infrastructure in Al Quoz is good for warehousing facilities, it does not suit manufacturing," Al Malek said.

He said the growing cost of living in Dubai was a source of concern but DIC would take steps to keep living cost lower.

Though Dubai lacks sufficient technically-skilled manpower and has scarce raw materials to become a manufacturing powerhouse, Al Malek believes the DIC project would succeed because of its export focus on neighbouring countries.