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Abu Dhabi to inject $2.7 billion to spur manufacturing sector

The goal is to double the sector’s size by 2031, creating jobs and boosting exports

Abu Dhabi to inject $2.7 billion to spur manufacturing sector
[Source photo: Anvita Gupta/Fast Company Middle East]
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In July, Abu Dhabi announced it’s aiming to double the contribution of its industrial sector to its gross domestic product (GDP) by 2031 as part of a broader effort to diversify its economy away from oil.

In 2022, the industrial sector contributed $24.72 billion to Abu Dhabi’s GDP, or 16.4% of its non-oil GDP and just over 8% of its total GDP. Abu Dhabi, about half of the UAE’s industrial sector, wants to increase this to $46.8 billion by 2031.

Recently, Abu Dhabi announced its plans to invest $2.7 billion in six programs to achieve its goal of doubling the size of its manufacturing sector, creating 13,600 skilled jobs, and boosting non-oil exports by 2031.

“The programs include talent development, ecosystem enablement, Industry 4.0, circular economy, homegrown supply Chain, and value chain development,” said Eng Arafat Al Yafei, Executive Director of the Industrial Development Bureau (IDB).

One year after launching the Abu Dhabi Industrial Strategy (ADIS), the number of new industrial licenses has increased by 16.6%, and manufacturers in the emirate have invested an additional $3.38 billion, bringing total capital investments to $104.5 billion by the end of June 2023.

The Abu Dhabi Chamber is committed to helping businesses and growing Abu Dhabi’s industrial sector, said CEO Ahmed Khalifa Al Qubaisi.

“This key sector is advancing steadily, especially following the launch of ADIS by Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, which aims to consolidate the Emirate’s position as the most competitive industrial hub in the region,” he said.

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