UAE's industrial sector added $53.6bn to economy in 2023

The UAE industrial sector’s contribution to gross domestic product reached about Dh197 billion ($53.64 billion) last year, with the country achieving 30 per cent of Operation 300bn’s target since its 2021 launch, officials said on Wednesday. The Emirates’ industrial exports increased by 17 per cent, recording 7 per cent growth in productivity since the launch of the programme and reaching Dh187 billion in 2023, the Ministry of Industry and Advanced Technology said. “We aim to achieve sustainable economic development by amplifying efforts and building a robust industrial sector, supported by an integrated legislative and regulatory system,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology. The UAE launched its industrial strategy, Operation 300bn, to position the country as an industrial centre by 2031. The 10-year strategy focuses on increasing the industrial sector’s contribution to GDP to Dh300bn by 2031, from Dh133 billion in 2021. MoIAT, which is overseeing the strategy, was created in 2020 to increase the competitiveness of products made in the UAE and the industrial sector's contribution to the economy. As part of Operation 300bn, the UAE also launched the National In-Country Value programme, which aims to boost the private sector’s participation in the economy, diversify output and localise critical parts of the supply chain. “Supporting the localisation of supply chains, the National ICV programme achieved 17 per cent growth in local expenditure year-on-year, reaching Dh61 billion,” Dr Al Jaber said. “Additionally, 28 per cent of the total value of the local procurement deals announced in the Make it in the Emirates Forum have been secured, which amounts to Dh31 billion.” The Make it in the Emirates campaign encourages local and international investors to manufacture and export products from the UAE. The number of ICV programme partners grew to 28 in 2023, while the number of ICV-certified companies increased to 5,500, representing annual growth of 22 per cent. The initiative contributed to an 80 per cent increase in the number of Emiratis employed by certified companies to nearly 16,000 last year, from about 9,000 the year before. Thanks to the ministry’s initiatives, last year the UAE ranked first in the region and 29th globally in the competitive industrial performance index released by the UN Industrial Development Organisation. In partnership with Emirates Development Bank, Mashreq Bank and First Abu Dhabi Bank, MoIAT provided the industrial sector with financing solutions worth Dh5.3 billion last year, a 70 per cent increase. Small and medium enterprises secured 90 per cent of the financing, which is intended to boost industrial companies’ capacity for growth and competitiveness, Dr Al Jaber said. The ministry also secured credit solutions totalling Dh1.4 billion last year through Etihad Credit Insurance, the UAE’s federal export credit agency, and facilitated Dh3.3 billion in industrial investments in future industries like biotechnology, hydrogen and electric vehicles. It also provided customs exemptions worth Dh3 billion to producers of industrial inputs, including equipment and raw materials. Industrial service fees totalled Dh29.5 million last year, down 52 per cent compared to 2022. “The achievements witnessed in the national industrial sector confirm that it is on the right path … the sector continues to be a key engine of the UAE’s sustainable economic growth, supporting local production, empowering talent and providing opportunities for business expansion to investors, enabling them to promote their products and access key global markets,” Dr Al Jaber said.

UAE's industrial sector added $53.6bn to economy in 2023

The Emirates has achieved 30% of its Operation 300bn target since the launch of the strategy in 2021, MoIAT says