In 50 years, the UAE has made remarkable progress in numerous and diverse fields, ranging from AI to health care and leaps made in the national space programme. However, there is more that can be done to harness industrial growth and manufacturing within the country.
Earlier this year, at the World Government Summit in March, Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, said that the industrial sector is key to the country. Speaking candidly of the lessons derived from the pandemic and laying a roadmap for local supply chains, Sheikh Mansour spoke of how the pandemic had highlighted how few sources of food and medicines were produced in the Emirates. “We have to focus more on the industrial sector and support it even more. We have ambitious projects and we must set the priorities.”
Already addressing this need, the Operation 300bn strategy was launched last year. The growth of small and medium enterprises in the UAE was deemed essential, with a push to expand key sectors, including petrochemicals, plastics and metals, and further develop industrial bases for food, water and health care.
In line with this strategy, this week’s "Make it in the Emirates" forum in Abu Dhabi outlines further the importance of producing locally and giving a renewed push to manufacturing in the country. The forum, which kicked off yesterday and continues today, was a meeting point for public and private sector players to drive industrial growth. Ambitions to achieve such self-reliance are inherently linked to nation-building and the further strengthening of the UAE's global identity.
As is well known, the UAE is often called a major international logistics hub, thanks to its proven capabilities and geographical positioning, having time and again topped surveys. The UAE is unique in the combination of enablers, like the ease of doing business, strategic location and efforts at reducing costs for business. Now, with the rigorous impetus being given to manufacturing, the UAE is transforming itself also into a centre for industry in the coming decade.
Already the UAE has a vast production output, in areas such as aluminum, defence equipment and polyolefins, used to make plastic, and ceramics. There is in the food sector, Al Khaleej Sugar factory, among several others.
There are over 300 products available in the 11 priority sectors for local manufacturers as “primary targets for localising our industry”, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, said at the forum. "Now is the time to step up our engagement collectively within the sector."
With the boost that attracting foreign investment and manufacturing locally will provide to the economy, the country will be set on a sustainable path to progress.
“We have put together all incentives and enablers to help you take advantage of multiple business and industrial opportunities,” Dr Al Jaber told the participants from key entities and companies. “We have brought together with national champion companies who are offering Dh110 billion [$30bn] in purchasing agreements. We must take advantage of this opportunity."
With some great success stories in the UAE of industrial companies thriving, the country's Make it in the Emirates push will further stimulate the local economy. As well as increasing output of locally made products and creating room to local suppliers to multiply the scope of their business, there will be investment in research and development in the UAE, and efforts to incentivise the adoption of advanced technology in the Emirates.
With plans etched out, the UAE already has the roadmap, systems, resources and talent to achieve this goal.
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More from Neighbourhood Watch:
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
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The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
more from Janine di Giovanni
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
