The industrial and advanced technology sector in the UAE continues to experience qualitative advancements, driven by a strong and sustainable infrastructure, adaptable legislation, and a comprehensive framework of standards and technical regulations that enhance the competitiveness of Emirati products.
This sector has reinforced its position in promoting sustainable economic growth, boosting competitiveness, and contributing to the nation’s GDP as part of the National Strategy for Industry and Advanced Technology, known as “Operation 300bn.”
GDP contribution insights
In remarks to the Emirates News Agency (WAM), Omar Al Suwaidi, under-secretary of the Ministry of Industry and Advanced Technology, indicated that the industrial sector’s contribution to GDP has risen to 11 percent, amounting to AED205billion by the end of 2023.
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Enhancing economic diversification
Al Suwaidi emphasized that this advancement has strengthened the sector’s role in the country’s economic diversification and support for sustainable development. This assertion is backed by global competitiveness reports, revealing that the UAE’s ranking improved from 35th in 2019 to 27th globally, and first in the Arab region, according to UNIDO’s Competitive Industrial Performance Index (CIP).
Impact of ICV program
Moreover, Al Suwaidi highlighted the National In-Country Value (ICV) Program, initiated as part of the “Projects of the 50,” which has redirected over AED73billion in corporate expenditures into the national economy as of the third quarter of 2024. This initiative has promoted growth and integration among industrial and service firms while generating a social impact, with more than 19,000 Emiratis employed in private sector companies certified by the program.
Streamlining industrial licensing
Additionally, Al Suwaidi added that the Industrial Development Council, consisting of representatives from federal, local, and industrial zones, has been instrumental in simplifying industrial licensing processes and implementing a new industrial law that reduces licensing barriers, especially for small and medium-sized enterprises (SMEs).
Growth in industrial financing
In recent years, industrial financing has significantly increased, with over AED19billion in competitive funding made available by the Emirates Development Bank and other financial institutions. In 2024, AED9.5billion was earmarked for the industrial sector, including AED1.1billion targeted for advanced technology and AED1.8billion in credit solutions offered by Etihad Credit Insurance.
Achievements of “Make it in the Emirates” forum
The “Make it in the Emirates” Forum has achieved noteworthy milestones across its three editions. By the conclusion of 2023, purchase agreements for domestically manufactured products over a decade had reached AED143billion, encompassing 2,000 locally produced items. Furthermore, manufacturing contracts valued at AED62billion were awarded, and over 300 products were produced and purchased in quantities worth approximately AED7billion.
