The value of UAE industrial exports rose to Dh197 billion ($53.6 billion) last year, up about 5 per cent annually and 68 per cent since 2020, as the country continues to boost local manufacturing and forge new global partnerships.
“Industry is a key driver of economic diversification and a catalyst for building national capabilities and job creation,” Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, said on Thursday.
“It’s a cornerstone for enhancing economic competitiveness, regardless of fluctuations in geopolitical conditions, oil prices or other factors.”
Dr Al Jaber, who is also chief executive of Adnoc, made the remarks while announcing details about the fourth edition of Make it in the Emirates event that will be held in Abu Dhabi from May 19 to 22.
The UAE has been focusing on industrial growth as it diversifies its economy away from oil. The country launched its industrial strategy, Operation 300bn, in 2021 to position the country as an industrial centre by 2031.
The 10-year strategy focuses on increasing the industrial sector’s contribution to gross domestic product to Dh300 billion by 2031, from Dh133 billion in 2021.
The Emirates has also signed 21 Comprehensive Economic Partnership Agreements to boost trade and attract investment into the country.
The country's Cepas with partners such as India, Israel, Turkey, Indonesia, Cambodia, Georgia, Costa Rica and Mauritius have already taken effect. Trade deals with countries including Colombia, South Korea, Australia, New Zealand and Malaysia are awaiting ratification.
The UAE’s foreign trade exceeded Dh5 trillion ($1.36 trillion) in 2024, with a trade surplus of more than Dh490 billion, Dr Al Jaber said, citing data from the World Trade Organisation.
“This reflects our open economic model, pursuit of Cepas and elimination of trade barriers with markets across Asia, the Pacific, Europe, Africa and South America,” he said.
“The UAE has chosen openness, connectivity and the free movement of trade, capital and people. It has strengthened our role as a bridge between East and West.”
The UAE is “well-positioned to become a destination of choice for countries worldwide for investment, manufacturing, and export, as well as a hub for attracting exceptional talent and expertise”, Dr Al Jaber added.
UAE's ICV programme
The In-Country Value Programme, which aims to channel procurement towards local products and services, has also produced tangible results.
“Local spending rose from Dh18 billion in 2018 to Dh110 billion last year. Cumulatively, over Dh347 billion has been channelled into the national economy, benefiting national products and services, investments, salaries and more,” Dr Al Jaber said.
The Make it in the Emirates event, set to be spread across 68,000 square metres – five times larger compared to the previous edition – will have more than 700 exhibitors.
The event will have the theme "Advanced Industries. Accelerated", with AI and Industry 5.0 in focus.
The fourth edition of Make it in the Emirates is taking place at a time "when the world is facing many geopolitical challenges and shifting trade and tariff policies", Dr Al Jaber said.
"These changes impact on supply chains and the movement of goods and raw materials, ultimately affecting industrial and economic dynamics. These global shifts are testing the capabilities, resilience and adaptability of nations in responding to emerging developments."
However, in the UAE, "we have developed an exceptional model of resilience and adaptability, and we are confident in our potential to continue achieving sustainable economic growth", Dr Al Jaber said.
The UAE’s economy grew by 3.9 per cent in 2024, its central bank said last month, driven by growth momentum in the country’s non-oil sectors amid the push for diversification.
The banking regulator expects the country’s GDP to increase by 4.7 per cent in 2025 and by 5.7 per cent in 2026.
Dh300bn target approaching
The UAE industrial sector's contribution to GDP reached Dh205 billion by the end of last year and “is moving at a pace faster than we had planned”, Omar Al Suwaidi, undersecretary of the Ministry of Industry and Advanced Technology, told The National on the sidelines of the press conference.
“Our target is to go beyond 300 in the next few years. As we hit 300 [Dh300 billion], we'll update our target.”
Despite the current macroeconomic environment, with the US announcing trade tariffs on a number of countries, Mr Al Suwaidi said the UAE has a “competitive advantage being where we are and having a well-established industry, logistics and Cepa agreements,” to attract more investment into the country.
A number of new projects, new financing solutions as well as procurement agreement opportunities will be announced during the event. It will also host a pavilion dedicated to Emirati handicrafts and heritage industries.
Over 30,000 visitors are expected to participate in the event this year, according to the organisers.
Green industrial projects
Meanwhile, the Industrial Transition Accelerator (ITA), launched during Cop28, announced a new partnership with Egypt’s Industrial Modernisation Centre to accelerate critical clean industrial projects in the region.
The agreement was signed in the presence Dr Al Jaber as well as Dr Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, and other officials, according to a statement on Thursday.
The partnership will support essential green industrial projects across the Mena region, “marking a major step forward in reducing the industrial sector’s carbon footprint”, the ITA said.
Egypt becomes the third country to join the ITA’s Mena Programme, following the UAE and Bahrain.
The ITA aims to bring together leadership across industry, finance and governments to accelerate decarbonisation in vital high-emitting industries on both the regional and international levels for the aluminium, cement, chemicals, steel, aviation and shipping sectors.
