UAE Unveils $11 Billion Push for Advanced Manufacturing and Economic Diversification

The United Arab Emirates has announced a sweeping advanced manufacturing strategy, committing over AED 40 billion (around $11 billion) in the next five years to drive industrial growth and reduce dependency on oil revenues. The move is part of Operation 300bn, a ten-year roadmap introduced in 2021 under the UAE industrial strategy, aiming to boost the sector’s GDP contribution to AED 300 billion by 2031.

Revealed during the 5th “Make it in the Emirates” forum in Abu Dhabi, the initiative underscores the nation’s ambition to become a regional hub for high-tech industry and innovation. Minister of Industry and Advanced Technology, Dr. Sultan Al Jaber, highlighted that industrial exports soared to AED 197 billion in 2023, nearly 70% higher than in 2021.

“A strong industrial sector is the foundation of sustainable development,” Al Jaber noted. “Each dirham invested is a step toward a future driven by knowledge and innovation”.

The funding will support 11 key sectors, including chemicals, metals, electrical equipment, pharmaceuticals, food production, and rubber and plastics. These industries are central to the UAE’s import substitution industrialization approach, reducing reliance on foreign goods while enhancing local capacity.

To empower the sector, seven major UAE banks — including Emirates Development Bank, First Abu Dhabi Bank, and Emirates NBD will provide specialized financial solutions to industrial companies, especially small and medium-sized enterprises (SMEs) and small and medium enterprises focused on import and export and high-tech manufacturing.

A key pillar of the plan includes expanding long-term offtake agreements valued at over AED 168 billion, aimed at securing stable demand for domestic output. In parallel, the government intends to localize over 4,800 industrial products, minimizing reliance on global supply chains.

As part of this effort, the AED 1 billion Emirates Growth Fund, led by Emirates Development Bank, will specifically target funding gaps for SMEs engaged in industrial production and innovation.

Currently, manufacturing contributes about 9% to the UAE’s GDP, to increase to 15% by 2031. More than 13,500 industrial companies operate nationwide — 40% based in Abu Dhabi and 20% in Dubai, including a growing number of manufacturers in Dubai, Dubai industrial companies, and import and export companies in the UAE.

Since 2021, the UAE has attracted over AED 180 billion in industrial investments, backed by regulatory reforms, modern infrastructure, and liberalized ownership rules. Emirates Development Bank alone has issued over AED 8 billion in industrial financing.
While oil companies in Dubai and the broader oil & gas sector in Dubai sector remain significant, with hydrocarbons still accounting for 30% of GDP and over half of government revenues, this shift signals the UAE’s strategic pivot. By accelerating its industrial base and clean energy initiatives, the nation is reinforcing its resilience in a volatile global energy landscape.