Abu Dhabi’s Industrial Strategy To Boost The Manufacturing Sector

Abu Dhabi’s Industrial Strategy to Boost the Manufacturing Sector

Abu Dhabi has recently launched an Industrial Strategy and is planning to invest AED 10 billion (USD 2.7 billion) across six transformational programmes which is expected to double the size of Abu Dhabi’s manufacturing sector to AED 172 billion (USD 47 billion) by 2031. Increasing access to financing, enhancing ease of doing business and attracting foreign direct investment are some of the key initiatives planned to achieve the objective.

Additionally, the six programme strategy is also expected to create more than 13,600 skilled jobs, primarily focusing on Emirati talent. Abu Dhabi’s trade with international markets will also be boosted because of the strategy and increase in Abu Dhabi’s non-oil exports by 143%,  reaching AED178.8 billion (USD 48.7 billion) by 2031. Multiple initiatives, including a new circular economy regulatory framework, new green policies and incentives, will continue to ensure Abu Dhabi’s transition towards a circular economy fuelled by the industrial sector.

Abu Dhabi’s Manufacturing Sector Overview 2022

The comprehensive industrial strategy planned by Abu Dhabi is an ambitious vision that will guide the future of the Emirate’s manufacturing sector, and help create a more resilient and diversified economy. Moreover, Abu Dhabi’s strategy coincides with UAE’s industrial strategy, in which operation AED 300 billion (USD 81.6 billion), will create the ideal environment for businesses to emerge and grow. It will also address key points such as helping secure future investor opportunities, boosting job creation and enabling Abu Dhabi to adapt to the ever evolving market conditions.

By leveraging the full potential of innovative technologies that are available in UAE’s industrial landscape, Abu Dhabi can realize the next stage of advancement for the national economy. While the global economy remains unpredictable, the leadership has helped Abu Dhabi to drive for industrialisation and at the same time facilitating a dynamic manufacturing ecosystem.

Abu Dhabi’s Six Programmes Strategy – Key Focus

  1. The Circular Economy programme will increase sustainability across all industries by enabling responsible industrial production and consumption. A regulatory framework for waste, recycling, and consumption will be developed and implemented, alongside policies that encourage ESG (environmental, social and governance), green procurement and incentives for improved environmental sustainability.
  2. The Industry 4.0 programme will accelerate business growth by adapting new technologies and processes. This adaptation will increase competitiveness and innovation, backed by initiatives including a smart manufacturing funding programm
  3. The Talent development will create jobs with a focus on Emirati talent, the talent development programme will assess industry-wide competencies, and offer upskilling programmes to fill skills gaps and meet future needs. 
  4. The Ecosystem enablement aims to implement a digital geographic information system G-mapping for industrial land search and a unified inspection programme for quality control thereby supporting business enabling environment via reimbursement incentive programmes for government fees, land rebates, R&D and tax.
  5. The Homegrown supply chain programme will build industrial sector resilience by promoting domestic products. The already extensive Abu Dhabi Golden List, which encourages government procurement of high-demand, locally manufactured products, is being expanded; whilst access to foreign markets will be eased through a comprehensive economic partnership agreements.

The Value chain development will drive local infrastructure development for end-to-end integration, a supply chain equity investments fund will be established. In addition, offsets will be offered to support industrial funding and the Abu Dhabi Channel Partners initiative will incentivize foreign direct investment.

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Author: Waqas Siddiqui
I am passionate about supporting businesses in successfully expanding in the UAE and Gulf region. I can be reached at waqas@researchkonnection.com for research inquiries.