The UAE’s industrial sector has emerged as a key pillar of the country’s economic diversification, with exports doubling to Dh262 billion ($71.34 billion) since the Ministry of Industry and Advanced Technology was established in 2020.
With the fifth Make it in the Emirates under way in Abu Dhabi, Hasan Al Nowais, undersecretary of the ministry, tells The National how the sector has remained stable amid regional disruption, as well as discussing the effects of the newly announced Dh1bn National Industrial Resilience Fund and the path ahead for UAE manufacturing.
The country’s industrial production has soared in recent years. Can you take us through the key achievements since the ministry was set up?
The UAE made a clear choice in 2020 – to build. Not as ambition, but as policy, to make at home what the country needs, export what the world wants and deliver regardless of conditions.
The establishment of the ministry unified the mandate for industrial policy, advanced technology and national standards. That coherence quickly translated into capability.
Since then, industrial exports have doubled to Dh262 billion, while the National In‑Country Value Programme (ICV) has redirected Dh473 billion into the economy by prioritising local suppliers. Medium and high-tech exports have reached the 2031 target six years ahead of schedule and UAE-made products reach three billion consumers globally.
What matters most is what this means for the country – more products made by Emirati hands, more opportunities for our young people and our SMEs, and an industrial economy that makes the UAE’s future less dependent on what the world does next.
The Iran war has severely disrupted the supply chain and strikes on Gulf infrastructure have caused significant damage. How much of an effect has it had locally so far?
The UAE has been impacted. Our energy infrastructure has taken hits that no civilian production sites should. We are still assessing the damage and costs.
That said, the investments we made in resilience allowed our industrial sector to remain stable and operational. Production continues, supply chains are functioning and business continuity has been maintained across key industrial activities.
That stability is not accidental. It reflects an industrial model built deliberately over time, one that prioritises resilience, diversification and preparedness – supported by strong co-ordination between government, industry and the private sector. This is the spirit behind Make it in the Emirates 2026 – a UAE that was built to keep building, and the past months have shown what that really means.
More than that, we are not just holding ground. This period has accelerated the localisation of vital industries and reinforced investor confidence. The UAE does not just absorb shocks – it emerges stronger from them.
The UAE recently launched the Dh1bn National Industrial Resilience Fund to support the market. Can you highlight other measures the ministry has adopted?
The Dh1bn National Industrial Resilience Fund forms part of a wider package designed to support the localisation of vital industries, enhance supply chain resilience and accelerate the adoption of AI across production, operations and planning.
Other initiatives the ministry has adopted include advancing the expansion of the ICV programme into a mandatory framework. The expanded ICV framework directs more national spending towards home-grown manufacturers and SMEs.
A complementary policy to strengthen the presence of UAE-made products across retail outlets and e-commerce platforms reinforces that effect on the consumer side. Together, these initiatives combine demand stimulation, access to financing, and AI-enabled industrial readiness – reinforcing a clear commitment to a stronger, more resilient industrial base.
The government has also now amended ICV regulations. What kind of an effect will that have?
The expanded ICV framework will have a direct impact on the demand for local products and services. By making the programme mandatory for all federal government entities, as well as companies with at least 25 per cent direct or indirect federal ownership, more national spending will be directed towards UAE-based manufacturers and suppliers.
How does the ministry plan to optimise operational efficiency of the sector?
We plan to continue building our operational efficiency, through localisation, supply chain resilience and strategic partnerships, alongside long-term investments in infrastructure and advanced industry.
AI and advanced technology are central to this. Through ITTI – our Industrial Technology Transformation Index – we have assessed more than 620 manufacturing companies, initiated more than 3,000 Industry 4.0 projects and deployed more than Dh7.8 billion in advanced technology financing.
Among participating factories, productivity has risen by 40 per cent and sustainability practices by 70 per cent.
The AI economy is, at its physical foundation, a manufacturing economy – and the UAE is one of the nations that will build it.
As the UAE’s flagship platform for turning industrial strategy into execution, Make it in the Emirates connects companies with procurement opportunities, partnerships and financing.
This year, we are introducing procurement opportunities to localise about 5,000 products within the UAE.
Considering the current circumstances, what are your expectations for the rest of this year for the UAE’s industrial sector?
The outlook remains strong, supported by industrial gross domestic product that has nearly doubled since 2020 and manufactured exports that have more than doubled to Dh262 billion, which is reflected in continued operational stability and sustained investor confidence.
For the remainder of the year, the focus is on execution and continuity – reinforced by localisation, strengthened supply chains and sustained demand for local manufacturing. The UAE’s industrial sector is well positioned to grow, supported by demand-side measures such as access to more than Dh168 billion in offtake opportunities announced through Make it in the Emirates last year – a figure that continues to grow – as well as financing tools like the resilience fund.
Looking ahead, how does the ministry plan to further diversify the country’s industrial base? Are there any areas that need more private and public sector investments? Also, which are the sectors where you see the most scope for further growth?
The ministry’s diversification plan is built around deepening the industrial base across the full value chain – with localisation, supply-chain resilience and technology transformation as the connective tissue.
Achieving this requires investment from public and private sources, working in tandem.
With 100 per cent foreign ownership, customs exemptions and 36 Comprehensive Economic Partnership Agreements in place, we are looking for more investment to flow into technology-intensive manufacturing, sustainable materials, and supplier networks.
The sectors with most scope for growth include pharmaceuticals and medical technology; advanced manufacturing, AI and Industry 4.0; future energy and industrial decarbonisation; and aerospace, defence and automotive.
Make it in the Emirates 2026 is where many of these opportunities will move from announcement to commitment, under a theme that captures where the country stands today: “Advanced Industry. Emerging Stronger.”
