The UAE Government is focused on more than doubling the contribution of industrial manufacturing to the UAE’s GDP to 25 percent, as highlighted in Vision 2021, Dubai Industrial Strategy 2030, and Abu Dhabi Economic Vision 2030. Industrial manufacturing lies at the heart of Operation 300bn, a government strategy launched in 2021 that aims to develop the UAE’s industrial sector and enhance its role in stimulating the national economy. It aims to raise the industrial sector’s contribution to the GDP from AED 133 billion to AED 300 billion by 2031.
We hope to attract international companies to launch pioneering projects in this country and to develop strong partnerships with UAE industrial companies at both the local and international level. Add to this our strong support for SMEs to enter the advanced industrial sector and contribute to global value chains, and we expect home grown companies to eventually play a major role in driving innovation and employing new technologies within the national industrial sector
HE Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Infrastructure
in terms of competitiveness of the industrial sector
Manufacturing's contribution to GDP by 2031
Manufacturing as percentage of GDP in 2019
Allocation by the Emirates Development Bank for priority manufacturing sectors
The UAE is perfectly positioned as a major manufacturing and export center, located at the heart of the Arabian Gulf, the Former Soviet Union (CIS), South Asia, and Africa. Indeed, in the latest Competitive Industrial Performance Index report by the United Nations Industrial Development Organization, the UAE was found to have the most competitive industrial sector in the Arab world, ranked 28th globally for manufacturing value-added per capita.
At present, manufacturing's share of GDP amounts to AED 133 billion (USD 36.2 billion), with a goal of hitting AED 300 billion (USD 81.7 billion) by 2031.The UAE's strategy is focused on the following vital industrial sectors that will stimulate growth, increase productivity, foster sustainable economic outcomes, and create job opportunities:
The Emirates Development Bank (EDB) will act as a key enabler of Operation 300bn. Under the strategy, the bank has allocated AED 30 billion to support priority industrial sectors over a period of five years.
It is worth noting that beyond those areas mentioned above, specialized manufacturing for aviation, as well as shipbuilding have emerged in the UAE in recent years off the back of a number of successful joint ventures between foreign investors and UAE companies. Such ventures are supported through the multitude of free zones which focus on industrial manufacturing across the various emirates, and which tie in to the UAE’s strength as a major logistics hub, particularly around ports and airports. Investors could leverage know-how and best practice from the successful aerospace manufacturing industries in the UAE, as well as the Government’s focus on high-tech automation, to enable production of higher-value products.
The UAE is a story of transformation. With strong leadership, and a continued focus on long-term goals, our advanced manufacturing sector is set to share a quarter of the national GDP in the very near future. Growth in manufacturing is encouraging greater investment in developing specialist skills, and promoting wider societal sustainability initiatives across the country.
Mr Badr Al-Olama, Director of Aerospace, Mubadala Investment Company