The UAE is steering its robust industrial foundation towards cutting-edge manufacturing, with a spotlight on renewable energy, semiconductors, AI components, and electric vehicles. This strategic transition was unveiled at the seventh edition of the UAE Government Annual Meetings in Abu Dhabi.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, presented a visionary industrial blueprint at the event, leveraging the nation’s current strengths while exploring high-growth, tech-centric sectors.
“The world is evolving at an unprecedented rate,” Dr. Al Jaber remarked. “Today’s indicators will differ tomorrow. The landscape shifts constantly, requiring us to anticipate changes and remain agile.”
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Leveraging established strengths
The minister emphasized that the new industrial strategy will capitalize on the UAE’s established capabilities in petrochemicals, aluminum, steel, and other resource-intensive industries as a springboard into advanced manufacturing.
“We are focusing on new industries rooted in our robust resources like petrochemicals, aluminum, steel, and rare earth materials,” he stated.
This strategy aims to create industrial clusters that blend traditional strengths with new technologies.
The emphasis on renewable energy, semiconductors, data center components, AI infrastructure, energy storage batteries, and electric vehicles signifies a comprehensive push into sectors poised to define future global economic competitiveness.
Remarkable growth since 2020
The ambitious vision is grounded in significant achievements since the Ministry of Industry and Advanced Technology was established in 2020 during the Covid-19 pandemic.
Dr. Al Jaber disclosed that the industrial sector’s GDP contribution soared by 62% to $120 billion, while industrial exports increased by 68% to $197 billion.
“These results stem from diligent efforts, planning, strategies, and support from wise leadership,” Dr. Al Jaber noted.
The ministry was tasked with transforming the industrial sector from mere administrative oversight to a primary economic driver.
Priority was given to sectors with direct GDP impact, such as pharmaceuticals, food security, and essential supplies, ensuring supply chain sustainability and building a robust quality framework.
The in-country value revolution
A key success factor has been the National In-Country Value (ICV) program, reshaping national expenditure flow.
The program redirected Dh210 billion into the economy in 2024—a 244% increase from 2020.
Beyond financial impact, the ICV program has become a pivotal tool for Emiratisation, with UAE nationals in private sector roles reaching 22,000, a 260% growth.
The program now covers sectors like energy, healthcare, aviation, telecommunications, infrastructure, and finance.
National champions leading the way
Dr. Al Jaber highlighted the role of national firms in driving industrial growth, with ADNOC exemplifying public-private partnership success.
ADNOC contributed over Dh242 billion to the economy and allocated Dh90 billion for local product manufacturing in collaboration with global companies.
“Before the ministry’s establishment and the Made in the UAE initiative, companies worked independently. Now, we aim to build national industrial capacity within a unified framework,” Dr. Al Jaber explained.
Another key player, TA’ZIZ, ADNOC’s downstream chemicals joint venture, is investing over Dh30 billion in chemical and transformation industries, with the Ruwais Industrial Complex producing over 5 million tonnes of polymers annually, exported to more than 50 countries.
The ‘made in the UAE’ platform
Central to the ministry’s strategy is the ‘Made in the UAE’ initiative, which has evolved into a national program uniting developers, manufacturers, and businesses.
Since its inception, the platform has identified over 4,800 products for local manufacturing, valued at Dh168 billion.
To support this manufacturing drive, the ministry partnered with the Emirates Development Bank for competitive financing solutions.
The bank allocated Dh40 billion for national industrial project financing, ensuring manufacturers have assured demand and reduced investment risk.
Global recognition and quality infrastructure
The UAE’s industrial transformation has gained global attention. In three years, the nation advanced five positions to 27th globally in the Competitive Industrial Performance Index and ranks first in the Arab world. It also holds fifth place globally in the Quality Infrastructure Index.
These achievements are supported by a sophisticated quality and standards ecosystem, with over 220,000 national standards and 120 accredited laboratories meeting international specifications. “This system is the foundation of global trust and market confidence in UAE-made products,” Dr. Al Jaber noted.
From traditional to smart manufacturing
A key ministry focus has been the digital transformation of manufacturing. Dr. Al Jaber highlighted the shift from traditional industries to smart industries utilizing modern technology, AI, and the Fourth Industrial Revolution.
“This enables our economy to boost production efficiency and enhance local product competitiveness,” he said.
Focusing on advanced manufacturing technology positions the UAE to compete on innovation, quality, and speed—vital in high-tech sectors.
