The UAE (United Arab Emirates) has made an announcement of major initiative to boost down the industrial sector. Which will offer over Dh40 Billion in financing to the industrial companies for coming five years. This step is aimed to enhance the growth. The country’s industrial base and diversifying its economy away from the oil dependency. This announcement was made by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology. He also addresses at the Make it in The Emirates event in Abu Dhabi recently.
Hike to Fuel the Economic Growth
The minister also emphasized that investing in manufacturing is a direct investment in building a more advanced and sustainable economy. He also mentioned, every investment in the industrial sector will have a “multiplier effect” increasing the growth across various related sectors. This plan is part of a the UAE’s broader strategy to make a stand out position as a global industrial leader.
The UAE’s Emirates Development Bank, along with major commercial lenders such as First Abu Dhabi Bank, Mashreq, Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Wio Bank, will provide commercial financing to businesses in the industrial sector.
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Launch of the Emirates Growth Fund
In addition to the industrial financing initiative, the UAE is launching the Emirates Growth Fund, a Dh1 billion investment platform designed to support small and medium-sized enterprises (SMEs). This fund will focus on fostering growth in key strategic sectors including manufacturing, healthcare, food security, and advanced technology. The Emirates Development Bank will manage the Emirates Growth Fund and play a critical role in supporting the growth and development of SMEs, which are crucial for the diversification of the UAE economy.
Aims for Increased Procurement and Local Manufacturing
Dr Al Jaber also highlighted the UAE’s goals to increase procurement opportunities within the industrial sector, aiming to raise the value of these opportunities to Dh168 billion over the next decade. This initiative is design to strengthen the industrial base and create opportunities for both local and international companies. Furthermore, the UAE plans to localize the manufacturing of more than 4,800 products within its borders. This move aligns with the country’s overarching industrial strategy, known as Operation 300bn, launched in 2021.
Focus on Key Industrial Sectors
As part of its diversification strategy, the UAE has identified several key sectors that will receive focused attention under the Operation 300bn plan. These sectors include chemicals, electrical equipment, construction, machinery and equipment, food processing, transportation, metals, pharmaceuticals, rubber, plastics, fiberglass, and wood and paper. The goal is to create a diversified and sustainable industrial base that can compete globally and contribute to the long-term economic growth of the country.
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Building a Strong Industrial Foundation
Dr Al Jaber underscored the importance of a strong industrial foundation for securing the UAE’s economic future. He explained that countries with robust industrial sectors better position themselves for sustainable economic growth, job creation, and the overall advancement of society. By investing in a more diverse industrial base, the UAE is not only aiming to achieve economic stability but also to create high-quality jobs and foster local innovation across various sectors. The UAE is all set for major player in global industrial markets, and it is making significant strides toward achieving its vision for 2031.
Conclusion
The UAE’s commitment to financing industrial growth through the Dh40 billion investment and the launch of the Emirates Growth Fund marks a significant step in its economic diversification journey. By focusing on industrial expansion, procurement opportunities, and localization of manufacturing, the UAE is laying the foundation for a future that is less reliant on oil, while positioning itself as a leader in global manufacturing and technology innovation. With these new initiatives, the UAE is not only investing in its future but also setting the stage for a sustainable and prosperous economy for years to come.
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