- March 30, 2021
- Posted by: Waqas Siddiqui
- Category: Business & Economy
Operation 300 billion – Focus on Sustainable National Economy
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has launched the Industrial Strategy “Operation 300 billion”, a 10-year comprehensive strategy that aims to empower and expand the industrial sector to become the driving force of a sustainable national economy, increasing its contribution to the GDP from the current AED133 billion (USD 36.2 billion) in 2021 to AED 300 billion (USD 81.6 billion) by 2031. The Ministry of Industry and Advanced Technology will lead the strategy comprising of programmes and initiatives to support 13,500 industrial Small and Medium Enterprises (SMEs).
The strategy will focus primarily on future industries that implement advanced technology and the Fourth Industrial Revolution (4IR) solutions and applications. It aims to increase the value of these industries through improving and promoting local products on a global level and building an attractive business environment for local and international investors to improve their productivity. The strategy will also provide facilities and incentives for the industrial SMEs with an aim of positioning the UAE as a global industrial hub and attract Foreign Direct Investors (FDIs), talents and experts from across the world. These initiatives are expected to contribute towards advancing the national economy and sustainable development of the country.
Operation 300 Billion – Objectives
The initiative has four major objectives. The first objective will offer financing facilities to priority industrial sectors, develop industrial quality infrastructure to support existing and new local industries. The second objective is to capitalize on the industrial development and stimulate the national economy through launching a programme to enhance the value and demand for UAE products with the aim of boosting their contribution to the GDP, increasing their exports and finding new markets for them. The third objective is to encourage innovation and the adoption of advanced technology and solutions. The fourth objective is to create strong foundations to enhance the UAE’s position as a leading global hub for both business and technology.
The “Operation 300 billion”, also comprises of a new initiative, that Unifies Industrial Brands under the slogan ‘Make it in the Emirates’. Under the new initiative, the brands that are manufactured will be distinct and have a unique identity by enhancing their quality and global competitiveness. Ultimately, every product made in UAE will comply with the highest international quality standards and have its rightful place among the best international products. The industrial strategy will achieve a giant leap in the UAE’s industrial sector to become the main driving force of the national economy and paving the way for the next 50 years.
Implications of Operations 300 Billion to Economy
There are more than 33,000 industrial enterprises that are currently operating in the UAE, among which more than 95% of the enterprises are small and medium-sized businesses. SMEs are considered to be the backbone of the UAE. The Operation 300 billion strategy will support more than 13,500 SMEs by 2031, as they are major drivers of shaping a productive industrial sector and sustainable economy. The volume of spending on Research and Development in the industrial sector will increase from AED 21 billion (USD 5 billion), which is approximately 1.3% of the GDP, to AED 57 billion (USD 15.5 billion) in 2031, bringing the contribution to the GDP to 2%.
Investment Opportunities in UAE
The government has taken several measures to control the Covid-19 and accelerate the pace of economic recovery. Some of the other major initiatives apart from Operation 300 billion include providing UAE citizenship, 100% ownership of the businesses, extension of freeze on government fees to support the local economy and businesses. The futuristic strategies planned by the government, reflects the government’s supportive and investor-friendly environment which will continue even beyond Expo 2020. Even though the Expo will end on March 31, 2022, the investors and businesses that are operating in Dubai will continue to benefit from these supportive measures till early 2023.
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