• | 10:00 am

UAE invests $6.3 billion to expand industrial sector

The funding injection comes from two major players – ADNOC and PureHealth.

UAE invests $6.3 billion to expand industrial sector
[Source photo: Krishna Prasad/Fast Company Middle East]

The UAE’s industrial sector has significantly boosted in the past few years. Its industrial performance ranks first in the region and 29th worldwide on the UN Industrial Development Organisation’s competitiveness index.

The country is looking to further expand, announcing a significant boost to its domestic manufacturing sector with an additional $6.3 billion in funding. This move underscores the country’s ambition to expand its industrial capabilities and achieve greater self-sufficiency.

During the third Make it in the Emirates forum in Abu Dhabi, Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, emphasized the importance of industry as a cornerstone of the UAE’s economic diversification strategy. 

He highlighted the success of Emirati companies on the global stage, attributing it to the nation’s skilled workforce and high-quality products.

The funding injection comes from two major players: state-owned oil giant ADNOC ($5.4 billion) and PureHealth, the UAE’s largest healthcare group ($816 million). This brings total funding for the industrial sector to over ($38.9 billion), supporting the domestic production of more than 2,000 products.

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, pointed to a combination of factors driving industrial growth. These include government initiatives, supportive infrastructure, financial incentives, and a welcoming business environment. The Make it in the Emirates forum was praised for attracting investments and talent.

“The forum has been able to highlight the advantages of investing in the UAE industry and responding to the demand to ensure investors will have visibility and viable projects,” Dr. Al Jaber said.

Additional measures were announced to bolster the industrial ecosystem. A $272 million lending program for small and medium enterprises was established in collaboration with Emirates Development Bank. 

Furthermore, a new scheme offering competitive electricity prices for industrial companies in specific emirates was launched.

The UAE aims to capitalize on the momentum generated by Make it in the Emirates and solidify the industry’s role in its economic diversification plans. 

Positive results are already evident. Since the forum’s inception in 2020, the industrial sector’s contribution to GDP has risen by 49% to $53.6 billion, and industrial exports have soared by 60% to $50.9 billion.

The country has also seen a significant increase in in-country value (ICV), a measure of local economic participation in projects. ICV has grown by 109% since 2020, reaching $18.2 billion.

More Top Stories: