UAE industrial exports up to $33bn with 220 new factories going into production in 2021

The Emirates aims to boost the industrial sector’s contribution to the economy to $82bn by 2031

Dr Sultan Al Jaber, UAE's Minister of Industry and Advanced Technology, said the ministry has launched several initiatives and projects to support start-ups, entrepreneurs and SMEs. Wam

The UAE’s industrial exports to foreign markets hit Dh120 billion ($33bn) in 2021, according to a report by state news agency Wam.

The increase coincided with a jump in the number of factories that started production last year, with 220 new facilities going into service, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, said during the Federal National Council session.

These new facilities benefited from the UAE’s national strategy for industry and advanced technology that aims to boost the industrial sector’s contribution to the economy to Dh300bn ($82bn) by 2031 from Dh133bn currently.

“The ministry’s achievements within just a year of its establishment speaks volumes of the team’s efforts to support and enhance the industrial sector in the UAE, as well as boost the roles of start-ups and entrepreneurs, SMEs [small and medium enterprises] and large players,” Wam quoted Dr Al Jaber as saying.

“The ministry also launched the UAE Industry 4.0 programme to accelerate the adoption of advanced technology, boosting productivity, competitiveness and efficiency. We also launched several major initiatives and projects which aim to support start-ups, entrepreneurs and SMEs.”

The UAE is expanding its manufacturing and industry sectors as it maintains its economic momentum, leading it to a future underpinned by Fourth Industrial Revolution technology.

The country has also launched a national In-Country Value (ICV) programme that aims to increase the redirection rate of government spending towards UAE-based companies to 50 per cent by 2031.

It is in line with Operation 300bn, the national strategy launched in March to position the UAE as a global industrial centre by 2031.

The 10-year comprehensive strategy aims to increase the industrial sector's contribution to the country's gross domestic product. Overall, Operation 300bn aims to support 13,500 SMEs over the next decade.

Dr Al Jaber said the national ICV programme has so far succeeded in circulating Dh41bn back into the local market, further promoting local companies. Nearly 45 public entities and 13 major national institutions and companies have joined the ICV programme.

The ministry has adopted pillars, including advanced technology, standards and metrology, and ICV, besides creating a competitive environment for future industries such as hydrogen and space.

The UAE Industry Development Council also held its first meeting on Thursday, headed by Dr Al Jaber.

Thani Al Zeyoudi, Minister of State for Foreign Trade, was appointed the vice chairman of the council and chairman of the council’s executive committee.

The UAE Industry Development Council held its first meeting, headed by Dr Al Jaber. Wam

“Exports accounted for approximately 60 per cent of the UAE’s industrial production in 2020 … the UAE accounts for more than a third of Arab industrial exports, and more than two thirds of Arab exports of goods with advanced technologies, all of which present a valuable opportunity for the growth and prosperity of the UAE’s industrial sector,” Mr Al Zeyoudi said.

The UAE cabinet approved the establishment of the council last month with the aim of enhancing the capability and competitiveness of the Emirates’ industrial sector, developing an attractive environment for local and international investors and instilling a conducive business environment for SMEs.

The council is also responsible for co-ordinating with federal and local government entities to develop policies and legislations necessary for the growth of the UAE’s industrial sector and adopting unified performance indicators.