UAE Industrial Sector – A Pillar of Sustainable Economic Growth!
UAE's Industrial Financing Witnesses Remarkable Expansion in Recent Years.
ABU DHABI: The UAE’s industrial and advanced technology sector has achieved significant milestones, driven by a strong and sustainable infrastructure, adaptive legislation, and a high-quality framework of standards and technical regulations that boost the competitiveness of Emirati products.
Under the National Strategy for Industry and Advanced Technology, "Operation 300b," the sector has played a pivotal role in fostering sustainable economic development, enhancing its global competitiveness, and contributing significantly to the national GDP.
In statements to the Emirates News Agency (WAM), Omar Al Suwaidi, Under-Secretary of the Ministry of Industry and Advanced Technology, highlighted that the industrial sector’s contribution to GDP had risen to 11%, reaching AED 205 billion by the end of 2023. This progress underscores the sector’s importance in economic diversification and its commitment to sustainable development.
Global competitiveness reports affirm this advancement, with the UAE climbing from 35th in 2019 to 27th globally and maintaining its top position in the Arab world, as per UNIDO’s Competitive Industrial Performance Index (CIP).
Al Suwaidi emphasized the impact of the National In-Country Value (ICV) Programme, launched under the “Projects of the 50” initiative. By Q3 2024, over AED 73 billion of corporate spending had been redirected into the national economy. This initiative has stimulated growth among industrial and service companies, created significant social impact, and facilitated the employment of over 19,000 Emiratis in private sector companies certified by the programme.
He further noted the contributions of the Industrial Development Council, comprising representatives from federal, local, and industrial zones, which streamlined licensing procedures and implemented new laws to ease industrial licensing, particularly for SMEs.
Industrial financing has expanded notably in recent years, with more than AED 19 billion in competitive funding provided by the Emirates Development Bank and other institutions. In 2024 alone, AED 9.5 billion was allocated to the industrial sector, including AED 1.1 billion for advanced technology and AED 1.8 billion in credit solutions from Etihad Credit Insurance.
The “Make it in the Emirates” Forum has also achieved exceptional results across its three editions. By the end of 2023, purchase agreements for locally manufactured products over the next decade had reached AED 143 billion, encompassing 2,000 locally produced items. Additionally, manufacturing contracts valued at AED 62 billion were awarded, and over 300 products were manufactured and procured in quantities worth approximately AED 7 billion.
