The United Arab Emirates (UAE) has made significant strides in propelling its industrial sector and achieving the targets set by the Operation 300bn strategy that was launched in 2021. The Ministry of Industry and Advanced Technology (MoIAT) announced that the industrial sector’s contribution to the UAE’s GDP has reached AED197 billion ($53.6 billion), accounting for 30 percent of the ambitious Operation 30obn target.
Operational achievements
Since the launch of UAE’s Operation 300bn initiative, the industrial sector’s exports witnessed a 17 percent growth. Meanwhile, the sector recorded a 7 percent increase in productivity. Noteworthy projects, totaling AED9.3 billion, focused on import substitution, contributing to the sector’s resilience.
Moreover, in 2023, the UAE secured the top spot regionally and ranked 29th globally in the Competitive Industrial Performance Index by the United Nations Industrial Development Organization (UNIDO). This recognition highlights the UAE’s commitment to fostering a competitive industrial sector and landscape.
In addition, the ministry has made significant achievements in technology transformation, leading to the country’s top regional ranking in the U.N. Readiness for Frontier Technologies Index. Moreover, the Industrial Technology Transformation Index (ITTI) evaluated 153 companies in the UAE. It revealed that 70 percent of companies implemented sustainability practices and 32 percent adopted Fourth Industrial Revolution (4IR) solutions.
Investment initiatives
The ministry, in collaboration with strategic partners, facilitated competitive financing solutions for the UAE’s industrial sector totaling AED5.3 billion, with a 70 percent growth from 2022. Small- and Medium-sized Enterprises (SMEs) secured 90 percent of the financing, driving growth and competitiveness. Additionally, Etihad Credit Insurance provided the ministry credit solutions amounting to AED1.4 billion. Moreover, the ministry facilitated AED3.3 billion in future industries like biotechnology, hydrogen, and electric vehicles.
Read: Industrial investments in Saudi Arabia reach SAR1.5 trillion in Q3 2023
National ICV Program
The National In-Country Value (ICV) Program achieved a 17 percent growth in local expenditure year-over-year, reaching AED61 billion. Aiming to localize supply chains, 28 percent of the total value from local procurement deals amounted to AED31 billion. Moreover, the ministry introduced initiatives that resulted in the employment of over 7,000 UAE nationals, emphasizing the importance of Emiratization.
Moreover, the ITTI was seamlessly integrated into the National ICV Program, incentivizing companies to adopt technologies and sustainable practices. The program contributed to a significant increase in high-technology jobs, with companies investing an estimated AED600 million in technology.
As the UAE achieves substantial milestones, the success of Operation 300bn becomes increasingly evident. The commitment to a business-friendly environment, technological innovation, and sustainability positions the nation as a global leader in industrial growth. With continued focus on Emiratization and strategic investments, the UAE’s industrial sector is poised for sustained success in the coming years.
Source: middleeasteconomy
