The construction site for the Borouge 4 petrochemical plant in Al Ruwais. Bloomberg
The construction site for the Borouge 4 petrochemical plant in Al Ruwais. Bloomberg
The construction site for the Borouge 4 petrochemical plant in Al Ruwais. Bloomberg
The construction site for the Borouge 4 petrochemical plant in Al Ruwais. Bloomberg


Next chapter of Abu Dhabi’s economic story will be written in its factories


Mohammad Al Kamali
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May 04, 2026

Manufacturing and factories have always held a particular fascination for me. They are far more than sites of production; they are where innovation is applied, where capability is built, and where economic ambition is transformed into tangible output. Throughout my career working in trade and industry, I have learnt that shifting dynamics are typical of the global economy. These periods are to be expected, yet they do not last forever.

It is during these cycles that true strength becomes most visible. This is particularly evident in Abu Dhabi’s industrial sector, where its depth comes into sharper focus amid a shifting regional landscape.

The emirate has long understood that a strong industrial base enhances supply chain reliability, increases local value creation, and supports more durable growth. This recognition is precisely why industrial development sits at the centre of Abu Dhabi’s economic strategy.

The objective is not merely to diversify the economy, but to strengthen its underlying foundations. Abu Dhabi’s economic performance to date suggests this strategy is working well. According to the Statistics Centre – Abu Dhabi, estimates indicate that non-oil activities accounted for 54 per cent of total GDP in the third quarter of 2025, underscoring the growing contribution of diversified sectors to the emirate’s overall economic output.

Mohammad Al Kamali, chief trade and industrial officer at Abu Dhabi Investment Office, speaks at Make It in the Emirates. Victor Besa / The National
Mohammad Al Kamali, chief trade and industrial officer at Abu Dhabi Investment Office, speaks at Make It in the Emirates. Victor Besa / The National

Manufacturing remains a cornerstone of Abu Dhabi’s non-oil economy, generating a value added of Dh30.5 billion in the third quarter of 2025 and contributing 9.4 per cent to GDP. The sector grew by 2.4 per cent year-on-year, supported by continued industrial expansion, logistics integration and initiatives to strengthen local manufacturing capacity and in-country value chains, reinforcing its role in economic diversification and sustainable growth.

Abu Dhabi recognises that industrial depth is not only forged by increasing output. Capability is as important as capacity – but the question is how to continue advancing both?

One approach lies across the advanced manufacturing and export-focused sectors, where Abu Dhabi is investing in systems that anchor high-value production within the local economy. This includes economic clusters such as Smart and Autonomous Vehicle Industries (Savi), Health, Endurance, Longevity and Medicine (Helm) and AgriFood Growth & Water Abundance (Agwa). These clusters integrate production, infrastructure, logistics and supply chains, creating the conditions for efficiency and long-term competitiveness.

By building the capacity to design, manufacture, adapt and scale industrial solutions, Abu Dhabi is well-positioned to capture long-term value while navigating change. In terms of pure scale, with extensive manufacturing facilities operating across the emirate, Abu Dhabi has the production depth to compete on reliability, responsiveness and value creation.

Cars are transported by rail to a car dealership in April 2026. Photo: Al Masaood Automobiles
Cars are transported by rail to a car dealership in April 2026. Photo: Al Masaood Automobiles

The emirate also sees “connectivity” as critical, and it has worked hard to ensure that it has a co-ordinated ecosystem in which suppliers, manufacturers and logistics providers can operate and scale more efficiently. It understands that access to infrastructure and demand within a connected environment reduces fragmentation and supports sustained growth.

From the perspective of manufacturers and investors, Abu Dhabi’s pursuit of industrial depth creates an environment where businesses can grow within the economy rather than around its limitations. It provides the confidence to invest, expand and build long-term operations, supported by reliable systems and integrated supply chains.

At the same time, localisation remains a priority, not as an inward-looking policy, but as a practical response to external shifts. Embedding more production and logistics within the local economy reduces exposure to disruption and strengthens continuity.

In Abu Dhabi, an important aspect of localisation has been the effort to position the government itself as a buyer of locally produced goods and services through the Golden Vendor Programme, which supports firms based in the emirate. In doing so, localisation initiatives have helped strengthen local suppliers, reinforce domestic industrial capacity and build strong and resilient domestic supply chains.

These efforts do not happen in isolation. Many of the most advanced developments in manufacturing and logistics are shaped by international collaboration, technology transfer and cross-border investment. Abu Dhabi’s approach is to deepen local capability, while remaining globally connected, ensuring that industrial growth is both rooted and competitive.

Technology-enabled farming in the emirate of Abu Dhabi. Photo Silal
Technology-enabled farming in the emirate of Abu Dhabi. Photo Silal

Technology continues to accelerate this shift in advanced manufacturing. Digital systems and data-driven processes are transforming how goods are produced, tracked and moved. It also allows for greater flexibility and responsiveness across supply chains. Economies that invest seriously in these capabilities will be best positioned to compete over the long term.

This mindset has enabled the nation to embrace change without losing sight of its strategic direction.

The next phase in industry will demand the same foresight, with greater depth and sharper execution. More localisation where it strengthens resilience. More integrated industrial ecosystems and stronger connections to global value chains, where they create competitive advantage. Forums such as Make it in the Emirates matter because they help turn that ambition into practical outcomes, whether through investment, partnership or the expansion of local capability.

In a rapidly evolving world, industrial depth is a defining source of economic strength. And it is this depth that will continue to define Abu Dhabi’s industrial future.

Updated: May 04, 2026, 2:56 AM