The UAE has set up a Dh1 billion ($272 million) fund to support the industrial sector, one of the central planks of the country's economic diversification agenda.
The launch of the National Industrial Resilience Fund is part of a broader package of initiatives to boost growth of the industrial sector in the Arab world's second-largest economy, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, wrote on social media platform X on Sunday.
The launch of the fund, shortly before the Make it in the Emirates forum in Abu Dhabi, underpins efforts to “strengthen resilience, expand local production, secure supply chains, and scale the use of artificial intelligence across production and operations”, Sheikh Mohammed said.
Fund resources will be allocated in line with national priorities, including food security and key industrial sectors such as manufacturing, primary metals, mechanical, electrical and chemical industries.
It will also be provided to companies in pharmaceuticals and active medicine ingredients, medical supplies, advanced technology and construction, the UAE Government Office said.
The UAE cabinet also approved amendments to the National In-Country Value (ICV) programme, which is no longer only an incentive-based framework. The programme is now mandatory across selected sectors, including federal entities and companies in which the government holds 25 per cent stake or more.
The country has also launched an initiative to support the sale of domestically produced products through physical and digital retail platforms in the UAE.
The first phase of that programme will focus on essential products with scalable local production, including bottled water, dairy, eggs, fresh and chilled poultry, bread, flour, locally packaged vegetable oil and seasonal vegetables, the Media Office said.
Implementation will be co-ordinated with relevant entities, private sector partners, retailers and digital platforms, with dedicated space allocated to made-in-UAE products.
“We made the National In-Country Value Programme mandatory across all government entities and national companies, and strengthened the presence of UAE-made products. Our target is clear. Fully localise more than 5,000 critical products,” Sheikh Mohammed said.
National Industrial Data Committee
The cabinet has also approved the establishment of a National Industrial Data Committee, chaired by Hasan Al Nowais, undersecretary of the Ministry of Industry and Advanced Technology.
The committee will identify priority industrial data, boost its availability, strengthen integration with national systems, address data challenge, and propose solutions to ensure real-time access, including any required legislative updates.
“These decisions reflect the leadership’s vision to advance a more resilient and sustainable national industrial model, built on the localisation of critical industries, the strengthening of supply chains and directing demand towards national products,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology.
“They also support the accelerated adoption of artificial intelligence across production and planning processes, enhancing the competitiveness of the industrial sector and reinforcing its contribution to economic growth.”
The UAE is preparing to host thousands of investors, manufacturers and industry executives at the annual Make it in the Emirates event in Abu Dhabi, from May 4.
More than 1,000 UAE companies are expected to take part in the four-day forum at Adnec, with the number of participants rising by 42 per cent compared to the previous event held last year, officials said. Sixty per cent of participating firms will be representing small and medium enterprises operating in the Emirates.
About Dh168 billion worth of offtake agreements are expected to be made at the event, the forum's website says.
Industrial growth focus
The UAE has been focusing on industrial growth, along with sectors such as tourism and technology, as part of its economic diversification plan.
The country launched its Operation 300bn strategy in 2021 to position itself as an industrial centre by 2031. The agenda focuses on sectors such as chemicals, electrical, construction, machinery and equipment, food, transport, metals, pharmaceuticals, rubber, plastic and fibreglass, and wood and paper.
The UAE's In-Country Value programme, meanwhile, has been aimed at boosting the growth of domestic industries by redirecting half of government spending on procurement and tender contracts to the national economy by 2031.
Last year, the UAE announced the launch of Emirates Growth Fund, a Dh1 billion investment platform under the Emirates Development Bank (EDB), to support SMEs in strategic sectors of manufacturing, health, food security and advanced technology.
State-owned lender EDB, focused on financing industrial sector companies, aims to approve up to Dh9 billion in funding this year, according to its chief executive. “We have an approximation of about Dh8 billion to Dh9 billion of approvals that we'll have throughout the year, and everything's on track as expected,” Ahmed Al Naqbi told The National this month.
The lender has disbursed Dh26 billion to support local industry since the launch of UAE’s Operation 300bn strategy in 2021, he added.
Amid a boost in the country's manufacturing capabilities, the UAE's industrial exports rose by 25 per cent last year to reach a record value of Dh262 billion.
Export figures have more than doubled since the UAE set up the Ministry of Industry and Advanced Technology in 2020 to support the expansion of its manufacturing sector, official government figures released in February showed.
Exports from medium and high-tech industries rose 42 per cent annually to Dh92 billion, exceeding the target of Dh90 billion for 2031 six years ahead of schedule.
