It isn’t surprising that the emphasis at this year’s Make it in the Emirates summit, starting in Abu Dhabi on Monday, is to further develop industrial and economic resilience in the UAE as it continues to adapt to an increasingly unpredictable world.
In the run-up to the annual forum, the government announced two policies aimed at achieving precisely this objective. Last week, it launched a Dh1 billion ($272 million) National Industrial Resilience Fund to support the country’s industrial sector. It also unveiled a National Programme to Strengthen Supply Chain Resilience that guarantees access to key commodities.
With more than 1,000 companies, and many more participants, convening in the capital over the next four days, these policies will plausibly form the basis for serious conversations around economic and supply chain diversifications as well as the Dh168 billion worth of agreements expected to be secured this week.
The summit is part of Operation 300bn, an initiative the government launched in 2021 with the purpose of ensuring that its priority sectors – pharmaceuticals, food production, construction materials, chemicals and advanced technology – are robust enough to withstand the shocks of a stubbornly turbulent global order. After the supply chain dislocations caused by the Covid-19 pandemic, and amid today’s geopolitical turbulence due to the Iran war and the resulting energy and commodity crisis, it is nothing if not prudent for any country to seek to build its domestic productive capacity.
The domestic benefits of a stronger industrial base are clear. Apart from reducing vulnerability to external shocks, improving local manufacturing capacity creates jobs and adds another layer of diversification to an economy that has already moved beyond hydrocarbon dependence. This year’s summit also reflects a commitment to building a broad-based industrial ecosystem, seeing as 60 per cent of the participating companies are small and medium enterprises.
This, in and of itself, shows that Operation 300bn is achieving its goal.
The story today of the country’s industrial sector is one of achievement as much as it is of aspiration. In just five years, industrial exports have doubled, reaching Dh262 billion last year with more than 25 per cent annual growth. The National In-Country Value programme, an initiative to connect local manufacturers to international supply chains, has channelled close to Dh500 billion into the national economy. Targets set for 2031 have been reached in six years, providing the impetus for policymakers to aim even higher.
But the UAE’s prudence should not be confused with protectionism. Its aim isn’t to produce “everything” at home but what’s most strategically important, as was the rationale behind the launch of Operation 300bn five years ago.
The UAE moreover remains one of the world’s most open economies. Abu Dhabi and Dubai are global logistics hubs, and the country’s seaports and airports handle large volumes of trade. The nation’s wealth, its population and its ambitions are all built on engaging with the world. None of this is likely to change for the foreseeable future.
At a time of unprecedented change, the UAEis further strengthening its foundations so that it can continue to face outwards – as it always has, but with even greater confidence.
