- UAE to invest AED40B in manufacturing to boost industrial GDP by 2031.
- Focus on 11 sectors, localizing 4,800 products and securing AED168B in offtake deals.
- Exports hit AED197B in 2023, with 700K employed and AED180B invested since 2021.
The UAE will invest more than AED40 billion ($11 billion) in next-generation manufacturing in the next five years as part of its strategic plans to diversify the economy away from oil. The investment is a central component of Operation 300bn, the ten-year program unveiled in 2021 to raise the contribution of the industrial sector to GDP to AED300 billion by 2031.
Addressing the 5th Make it in the Emirates forum, Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, mentioned that the UAE's industrial exports reached AED197 billion in 2023—almost 70% higher than in 2021.
"Countries with strong industrial foundations enjoy sustainable economic growth, secure a bright and prosperous future, and contribute to societal advancement. Investing in manufacturing is investing in an advanced economy", said Al Jaber.
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The investment will fund 11 priority sectors such as chemicals, metals, electrical equipment, food production, pharmaceuticals, rubber, plastics, and paper products. In order to aid growth, financing will come from seven local banks such as Emirates Development Bank, First Abu Dhabi Bank, Mashreq, and Emirates NBD, focusing on import substitution and high-tech manufacturing.
The government will also increase long-term purchase contracts—off take contracts—to over AED168 billion worth, with the aim of enhancing investor confidence and local production. Concurrently, the UAE will localize the production of more than 4,800 industrial goods to minimize dependence on imports.
Smalls and medium enterprises are supported, a AED1 billion Emirates Growth Fund that has been initiated. The manufacturing sector now accounts for approximately 9% of GDP, targeting 15% by 2031. There are more than 700,000 individuals employed in the sector through 13,500+ industrial firms, 60% being in Abu Dhabi and Dubai.
Between 2021 and 2024, the UAE received AED180 billion of industrial investments due to reforms, incentives, and expansion of infrastructure.