The UAE’s commitment to transforming its industrial landscape is evident in its focus on “sunrise industries” — sectors poised for growth in the coming decades. The country’s strategic policy-driven approach to manufacturing is positioning it to be a key global hub for innovation, particularly as it diversifies away from its traditional oil-based economy. By tapping into advanced technologies and emerging sectors, the UAE is rapidly establishing itself as a leading force in the global manufacturing arena.
Strategic Industrial Growth Through Operation 300bn
In 2021, the UAE launched its ambitious industrial strategy, Operation 300bn, aimed at transforming the nation into an industrial powerhouse by 2031. The initiative is focused on developing sectors such as chemicals, electrical, construction, machinery, food, transportation, metals, pharmaceuticals, rubber, plastic, and more. This strategic move is designed not only to boost domestic manufacturing but to target specific areas for development, creating a more robust and diversified economy.
Jeanne Walters, a senior economist at Emirates NBD, emphasizes that the government’s groundwork for this industrial expansion has been comprehensive. She notes that the UAE government has already taken significant steps in laying the foundation for a thriving manufacturing sector. With 21 Comprehensive Economic Partnership Agreements (CEPA) already in effect, the UAE is building global trade relationships that will further fuel its industrial growth.
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Investment and Innovation Driving Manufacturing
The UAE’s strategy is reaping tangible benefits. The International Cooperation and Investment Program (ICV), for instance, is helping redirect government procurement towards domestic industries, ensuring that a significant portion of spending circulates back into the UAE economy. With foreign trade exceeding Dh5 trillion ($1.36 trillion) in 2024, the UAE is increasingly recognized as a crucial global logistics hub.
In Abu Dhabi, advanced manufacturing tools, automation, robotics, and data analytics are becoming the norm. These high-tech tools are not only enhancing productivity but also providing a solid foundation for the sector’s growth. In fact, Abu Dhabi’s manufacturing sector remained the largest non-oil contributor to its GDP in 2024, showcasing a resilient and expanding industrial base. Moreover, Dubai’s efforts to encourage more domestic procurement are contributing to a strong and growing local manufacturing sector, as part of its D33 strategy to double the size of the city’s economy over the next decade.
The Growth of Small Businesses and Local Manufacturing
One notable example of the UAE’s evolving manufacturing ecosystem is The AM Lab, a UAE-based 3D printing company. Founded by Abdallah Alawadi, the company aims to democratize manufacturing by lowering entry barriers and enabling easier access to high-volume production methods. Initially, Alawadi faced challenges in accessing the required technology, but with patience and persistence, his company has grown into a full-fledged business. Today, powered by AI, The AM Lab is focused on expanding its client base and growing its network of local manufacturers, making a significant contribution to reducing reliance on overseas suppliers.
The UAE’s manufacturing sector is becoming an increasingly attractive option for both local and international businesses. As Alawadi points out, his goal is to add two new manufacturers or vendors to his network every month to meet growing demand. This is a clear indication that the UAE’s emphasis on innovation and manufacturing capabilities is paying off.
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Conclusion
Simon Penney, managing partner at Incrementum CGA, highlights that the UAE’s advantage lies in its lack of historical manufacturing baggage, often found in long-established economies. Instead, the UAE is building a modern, sustainable manufacturing sector focused on future industries such as AI, Industry 5.0, and automation. By focusing on emerging sectors, the UAE is positioning itself at the center of global manufacturing for years to come.
With events like the Make it in the Emirates conference and the rapid expansion of local manufacturing, the UAE is solidifying its status as a leader in advanced industries. The country’s patient yet methodical approach to industrial development, coupled with its significant investments in innovation, is laying the groundwork for an industrial revolution that will transform the UAE into a global manufacturing powerhouse. As the UAE continues to embrace its role in the new industrial age, it’s clear that its focus on “sunrise industries” will play a key part in its future success.
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