UAE Transforming Industrial Sector into Global Manufacturing Hub
His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, emphasized that the vision and directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, constitute the foundation of the national industrial strategy.
The strategy is designed to contribute to a diversified and sustainable economy and leverage on the UAE’s value proposition and competitive advantages to build a strong industrial sector, enhance self-sufficiency and localize supply chains.
Al Jaber made the remarks during a keynote address at the Make it in the Emirates Forum, which convenes leading national companies, manufacturers, local and international industrial investors and financial institutions.
He said: "The Covid pandemic and recent geopolitical challenges have disrupted our supply chains and affected the global economy; an experience from which we extracted many lessons.
“One of the most important lessons we learned is that regardless of global economic conditions, enhancing self-sufficiency and resilience in vital sectors such as, food, healthcare, and the sectors critical to ensuring business continuity and economic growth, is critical.”
The UAE is a Destination for Future Industries
“Our industrial strategy aims to create an attractive business environment for local and international industrial investors, support the growth of national industries, enhance their competitiveness and empower innovation and the adoption of advanced technologies.
“Our objective is to safeguard our national progress, leverage the legislative system, attract investments with an ultimate goal of empowering our national economy and increasing the industrial sector’s contribution to our GDP to more than AED 300 billion ($82 billion) by 2031.”
He added: “A key enabler of our work has been to research and identify priority sectors to achieve our goal, which include: food and agriculture, pharmaceuticals, petrochemicals, heavy industries such as aluminium and iron, defense, electrical equipment and appliances.
"In addition to future industries like space and clean energy such as hydrogen.”
“We have worked closely with the Emirates Development Bank to provide competitive financing solutions supporting the growth of industrial companies. And so far, the bank has provided 2 billion dirhams to finance priority sectors."
Launch of the National In-Country Value (ICV) Program was important as it aims to redirect large amount of purchase value of major companies and government agencies into the local economy by providing local companies with a competitive advantage.
“Currently, 45 government entities, 6 leading national companies, and 5,500 local industrial companies are participating in the program. In its first year, the National ICV Program succeeded in redirecting more than 40 billion dirhams into the national economy.”
“Therefore, we have cooperated with the relevant government agencies, large national companies, investors, manufacturers, and various stakeholders, in preparing for this forum.
“These companies today are offering more than 300 products and materials, which can be manufactured locally at competitive prices, at quality standards and with approved schedules, as additional manufacturing opportunities for existing and new investors.”
Al Jaber added: “I am happy to announce that these large national companies have committed to allocate nearly AED 110 billion ($30 billion) in potential purchase agreements for local manufacturers.
"Details of these industrial investment opportunities will be provided during the forum’s sessions. This unprecedented move will contribute to creating opportunities for the growth of the national industrial sector, adding at least AED 6 billion ($1.63 billion) annually to GDP.”