The United Arab Emirates continues to strengthen its industrial development strategy with a new financing plan worth AED 40 billion (approximately USD 11 billion) over the next five years, aimed at supporting growth and economic diversification.
The announcement was made by Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, during the Make it in the Emirates event in Abu Dhabi. “Investing in manufacturing means investing in an advanced economy,” he stated, emphasizing the sector’s multiplier effect across the broader economy.
Key local banks will offer competitive financing to industrial businesses, including Emirates Development Bank, First Abu Dhabi Bank, Mashreq, Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Wio Bank.
AED 1 Billion Platform for SMEs
To further boost growth, the UAE also announced the launch of the Emirates Growth Fund, a AED 1 billion investment platform (over USD 270 million) under the Emirates Development Bank, aimed at supporting small and medium-sized enterprises operating in strategic sectors such as manufacturing, healthcare, food security, and advanced technology.
Dr. Al Jaber noted that this initiative is part of a broader plan to unlock AED 168 billion worth of procurement opportunities within the industrial sector over the next decade and to localize the production of more than 4,800 products.
Operation 300 Billion: The UAE’s National Industrial Strategy
In 2021, the UAE launched Operation 300 Billion, an ambitious industrial strategy designed to position the country as an industrial hub by 2031. Priority sectors include chemicals, construction, energy, machinery and equipment, food, transport, metals, pharmaceuticals, plastics, glass, wood, and paper.
To support this effort, the UAE has forged strategic partnerships with several regional countries – including Jordan, Bahrain, Egypt, Morocco, Qatar, and Turkey – resulting in joint industrial projects valued at over USD 5 billion.
The strategy is already delivering tangible results. In 2024, the UAE’s industrial exports reached AED 197 billion, marking a 68% increase from 2021.
ICV Program Boosting Local Employment
A key pillar of the industrial strategy is the In-Country Value (ICV) Program, which focuses on increasing domestic spending and strengthening the national economy. The program has redirected AED 347 billion towards local products and services and created over 22,000 job opportunities for Emiratis.
Abu Dhabi and Dubai Leading the Industrial Transformation
Abu Dhabi continues to lead the UAE’s industrial transformation, leveraging cutting-edge technologies such as robotics, automation, and data analytics. In 2024, the manufacturing sector was the top non-oil contributor to Abu Dhabi’s GDP, with a record value added of AED 111.6 billion and an annual growth rate of 2.7%.
Dubai has also launched its own ICV program to encourage government entities to increase spending on local suppliers. The emirate aims to double the size of its economy to AED 32 trillion over the next decade as part of its D33 economic strategy.
Industry Growth Across the Emirates
The manufacturing sector also plays a significant role in the economies of other emirates. According to Emirates NBD, it accounts for around 16% of Sharjah’s GDP and approximately 27% of Ras Al Khaimah’s GDP – further highlighting the UAE’s commitment to building a diversified industrial base.
“The UAE has laid strong foundations for an efficient, resilient, and sustainable industrial sector,” said Dr. Al Jaber.
Focus on Artificial Intelligence
The UAE’s industrial strategy places a strong emphasis on advanced technologies, including artificial intelligence. “We don’t see AI merely as a tool or a new technology – we see it as a full-fledged economic sector,” said Dr. Al Jaber, adding that AI is expected to generate over USD 1.5 trillion globally by 2040.
In this context, the UAE recently inaugurated the first phase of the UAE-US Artificial Intelligence Campus in Abu Dhabi, set to become the largest AI hub outside the United States.
A Clear Opportunity for Italian Businesses
The favorable conditions created by the UAE’s industrial strategy offer a concrete opportunity for Italian companies looking to expand internationally and tap into a dynamic, innovative, and strategically positioned market. From manufacturing to technology, from healthcare to agri-food, there are numerous sectors where Italian expertise can thrive and benefit from local incentives and financing.
If you’re considering bringing your business to the UAE, contact us today – we’ll help turn your ambition into a tangible international growth project.