The industrial sector in the UAE has seen a 60 percent increase in exports from AED117 billion in 2020 to a projected AED187 billion, stated Dr. Sultan bin Ahmed Al Jaber, minister of industry and advanced technology. Since its establishment, the Ministry of Industry and Advanced Technology (MoIAT) has launched multiple strategic initiatives and programs to support the UAE’s industrial sector and enhance the business environment and industrial competitiveness.
In a statement to the Emirates News Agency (WAM), Dr. Al Jaber spotlights MoIAT’s efforts to boost in-country value in the national industrial sector and enhance the value add of manufacturing. Hence, the ministry seeks to boost supply chain security and economic competitiveness to support national products.
Industrial sector surges
The industrial sector’s contribution to the UAE’s economy has increased by 49 percent since MoIAT was established. In 2020, before MoIAT, the sector’s contribution to the gross domestic product (GDP) was AED132 billion, while today it has reached a projected AED197 billion.
Moreover, the UAE’s industrial exports have seen a remarkable growth of 60 percent, marking a AED70 billion increase in 3 years. Meanwhile, industrial productivity saw an 18 percent increase compared to 2020. Notably, the UAE ranked first regionally and 29th globally in UNIDO’s Competitive Industrial Performance Index in 2023, climbing seven spots since 2020.
The most notable factor that has led to the growth of the industrial sector in the UAE is technological advancement. Advanced technologies and Industry 4.0 solutions have allowed the sector to utilize robotics, artificial intelligence, blockchain, and the Internet of Things, among others.
Consequently, the UAE has transformed into a leading regional and international hub for future industries. Al Jaber noted that MoIAT supported high-tech industries with financing solutions worth AED1.5 billion in 2023 only. As a result, high-tech exports saw an increase from AED2.9 billion in 2020 to AED3.5 billion in 2023. Moreover, the UAE moved up five ranks to 37th place in the latest UN’s Frontier Technologies Readiness Index 2023.
Empowering the industrial sector
The UAE has launched numerous strategic initiatives and programs aimed at boosting in-country value and enhancing the competitiveness of the industrial sector.
In March 2021, the ministry launched the National Strategy for Industry and Advanced Technology, Operation 300bn. The strategy aims to create a strong industrial business environment that supports growth and competitiveness. Moreover, it establishes an integrated system of enablers, incentives, and financing solutions. It also seeks to create a flexible legislative structure and robust quality infrastructure to support the sector’s growth.
Al Jaber also shed light on the National In-Country Value (ICV) Program. This program has redirected more than AED237 billion into the national economy.
Through such initiatives, the ministry focuses on two main pillars to support the UAE’s industrial sector. First, the ministry aims to boost in-country value in the national industrial sector while also enhancing the value add of manufacturing. Second, it aims to provide more valuable opportunities for the industrial sector. That is through investment opportunities, facilitating access to global markets, and attracting foreign investments in advanced industries.
Read: Abu Dhabi’s industrial sector sees 51 percent rise in licenses in 2023
Legislative enhancements
The UAE’s industrial sector witnessed significant legislative enhancements with the issuance of Federal Decree-Law No. 25 of 2022. This decree strengthened the UAE’s position as an industrial hub through the ease of doing business and a unified industrial law. It also supports companies in keeping pace with national and global trends, enhances self-sufficiency in priority industries, and stimulates entrepreneurship, innovation, and SMEs.
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