The UAE government’s plan to increase the contribution of the industrial sector to the country’s economy in the next 10 years will help create new jobs and attract fresh investment into the country, according to experts.
The UAE's leadership announced a new industrial strategy named Operation 300bn on Monday to more than double the contribution of the industrial sector to the country's overall economic output to Dh300 billion by 2031, from Dh133bn currently.
The new strategy will lead “to an economic add-on effect – call it a domino effect or a multiplier effect – from which you can expect to see a few things”, said Abhay Bhargava, senior director of the Middle East and South Asia industrial practice at consultancy Frost & Sullivan.
“One is, of course ... employment. There is ... going to be a lot of employment that gets generated from this.”
Another is a strengthening of the UAE's logistics sector and the supply chain of companies who serve manufacturers, he said.
“Whenever you bring in manufacturing, it results in requirements for more financing services, more testing and inspection services, quality inspection on quality certification, as well as supporting areas like painting, coating [and] fabrication.”
A key part of the strategy will be attracting foreign investment, with recent legislative changes facilitating 100 per cent foreign ownership of companies and projects.
Dedicated financing is also being made available, an in-country value programme will direct spending towards local products and suppliers and the adoption of advanced technology will also be encouraged.
Overall, Operation 300bn aims to support 13,500 small and medium enterprises over the next decade.
Research and development spending on the industrial sector will also increase to Dh57bn by 2031, more than doubling from Dh21bn.
This will increase the industrial R&D contribution to gross domestic product up to 2 per cent, from 1.3 per cent currently.
“Manufacturing has been a catalyst of the UAE’s growth and diversification for decades, creating thousands of jobs and investment opportunities,” said Saud Abu Al-Shawareb, managing director of Dubai Industrial City.
“By boosting R&D and building on our achievements, Operation 300bn will boost our knowledge and innovation-based economy and strengthen the emirate’s attractiveness as a global business destination," he said.
The UAE already has a number of companies that are playing an important role in the manufacturing sector, including Emirates Global Aluminium, Borealis, Emirates Steel, Agthia and Ducab.
Edge, a defence conglomerate with more than 25 companies under its umbrella, also aims to boost its manufacturing capabilities and grow its revenue.
"For a region that has a high disposable income and one of the highest high-value consumer markets, it is naturally the next step to look at localising more value chains in the region," Anshu Vats, senior partner and global public sector and policy practice lead at Oliver Wyman, said.
The Fourth Industrial Revolution challenge "would be instrumental in addressing these new value chains, from advanced manufacturing to mobility to high-tech agriculture. They can all create significant global impact, based and made in the Emirates”.
A holistic approach to regulation is also needed to bring in sufficient investment and talent.
"Attracting the right companies, for the right reasons, would be critical to the success of the initiative," said Mr Vats.
Douglas Pickles, partner at Kearney Middle East, said the biggest challenge would be making UAE goods globally competitive.
"It is probably the most important factor," he said.
"You will need access to markets such as India, Pakistan and Africa to tap into the kind of demand that is going to bring companies here."
Bharat Bhatia, chief executive of Dubai steel maker Conares, welcomed the new initiative and said industrial development "is the only way forward for the long-term, sustainable growth of any economy in the world".
"Industries create innumerable employment opportunities in line with the business evolution, infrastructure investment, increased consumption and individual purchase power resulting in greater economic growth. It is great to know that the UAE is gradually shifting the focus of its economy towards the industrial sector as its backbone for growth," he said.
Industries related to food and beverages, oilfield equipment, building materials, aerospace and defence and packaging, among others are likely to see more investment following the new strategy, according to Mr Bhargava.
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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First-round leaderbaord
-5 C Conners (Can)
-3 B Koepka (US), K Bradley (US), V Hovland (Nor), A Wise (US), S Horsfield (Eng), C Davis (Aus);
-2 C Morikawa (US), M Laird (Sco), C Tringale (US)
Selected others: -1 P Casey (Eng), R Fowler (US), T Hatton (Eng)
Level B DeChambeau (US), J Rose (Eng)
1 L Westwood (Eng), J Spieth (US)
3 R McIlroy (NI)
4 D Johnson (US)
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
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Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
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Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
UAE%20FIXTURES
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Straightforward ways to reduce sugar in your family's diet
- Ban fruit juice and sodas
- Eat a hearty breakfast that contains fats and wholegrains, such as peanut butter on multigrain toast or full-fat plain yoghurt with whole fruit and nuts, to avoid the need for a 10am snack
- Give young children plain yoghurt with whole fruits mashed into it
- Reduce the number of cakes, biscuits and sweets. Reserve them for a treat
- Don’t eat dessert every day
- Make your own smoothies. Always use the whole fruit to maintain the benefit of its fibre content and don’t add any sweeteners
- Always go for natural whole foods over processed, packaged foods. Ask yourself would your grandmother have eaten it?
- Read food labels if you really do feel the need to buy processed food
- Eat everything in moderation
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Ibrahim's play list
Completed an electrical diploma at the Adnoc Technical Institute
Works as a public relations officer with Adnoc
Apart from the piano, he plays the accordion, oud and guitar
His favourite composer is Johann Sebastian Bach
Also enjoys listening to Mozart
Likes all genres of music including Arabic music and jazz
Enjoys rock groups Scorpions and Metallica
Other musicians he likes are Syrian-American pianist Malek Jandali and Lebanese oud player Rabih Abou Khalil
SQUADS
Bangladesh (from): Shadman Islam, Mominul Haque, Soumya Sarkar, Shakib Al Hasan (capt), Mahmudullah Riyad, Mohammad Mithun, Mushfiqur Rahim, Liton Das, Taijul Islam, Mosaddek Hossain, Nayeem Hasan, Mehedi Hasan, Taskin Ahmed, Ebadat Hossain, Abu Jayed
Afghanistan (from): Rashid Khan (capt), Ihsanullah Janat, Javid Ahmadi, Ibrahim Zadran, Rahmat Shah, Hashmatullah Shahidi, Asghar Afghan, Ikram Alikhil, Mohammad Nabi, Qais Ahmad, Sayed Ahmad Shirzad, Yamin Ahmadzai, Zahir Khan Pakteen, Afsar Zazai, Shapoor Zadran
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
