UAE to provide $11bn in financing to industrial firms over next five years

The UAE will provide industrial companies with more than Dh40 billion ($10.89 billion) in financing over the next five years to boost growth and expand the country's industrial base, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, said on Monday.

“Investing in manufacturing is an investment in an advanced economy,” Dr Al Jaber told delegates at the Make it in the Emirates event in Abu Dhabi.

"Every investment in the industrial sector has a multiplier effect – stimulating growth in related sectors.”

Emirates Development Bank, First Abu Dhabi Bank, Mashreq, Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Wio Bank are among the lenders that will provide competitive financing to industrial sector companies.

The UAE is also launching Emirates Growth Fund, a Dh1 billion investment platform, under the Emirates Development Bank, to support small and medium enterprises in strategic sectors.

These include manufacturing, health, food security, and advanced technology, Dr Al Jaber said in his keynote address at Abu Dhabi National Exhibition Centre.

The Arab world’s second-largest economy also aims to increase the value of procurement opportunities in the industrial sector to Dh168 billion over the next 10 years, as well as localising the manufacturing of more than 4,800 products, he added.

“Countries with strong industrial foundations enjoy sustainable economic growth, secure a bright and prosperous future, and contribute to societal advancement,” Dr Al Jaber said.

Growth agenda

The UAE has been focusing on industrial growth as it diversifies its economy away from oil. The Emirates launched its industrial strategy, Operation 300bn, in 2021, to position itself as an industrial centre by 2031.

The overarching industrial agenda focuses on sectors such as chemicals, electrical, construction, machinery and equipment, food, transport, metals, pharmaceuticals, rubber, plastic and fibreglass, and wood and paper.

As part of widening its industrial base, the UAE has also formed an industrial partnership for sustainable economic development with Jordan, Bahrain, Egypt, Morocco, Qatar and Turkey. "We have advanced regional supply chain integration through joint projects worth $5 billion in key sectors," Dr Al Jaber said.

The measures under the industrial strategy have already yielded results and the country's industrial sector has witnessed significant growth in recent years. "Industrial exports in 2024 reached Dh197 billion – a 68 per cent increase compared to 2021 [levels]," he added.

Jobs boost through ICV programme

Under the UAE's In-Country Value (ICV) programme, which is among the central planks of industrial strategy, local spending has reached Dh347 billion, while the initiative has created more than 22,000 jobs for Emiratis, Dr Al Jaber said.

The programme redirects as much spending as possible towards national products and services to boost growth of domestic industries.

Abu Dhabi, which is estimated to hold more than 90 per cent of the UAE's oil reserves, has increasingly advanced its manufacturing capabilities with high-tech tools, automation and robotics, and data analytics.

The manufacturing sector last year remained the largest non-oil contributor to Abu Dhabi's gross domestic product at 9.5 per cent, with its added value hitting Dh111.6 billion – the highest on record, the emirate's Department of Economic Development reported in March.

The sector posted an annual growth rate of 2.7 per cent in 2024.

Dubai last week launched its own ICV programme aimed at encouraging government entities to direct more spending towards domestic suppliers. The emirate aims to double the size of its economy to Dh32 trillion over the next decade and establish itself among the top three cities around the world, as part of its D33 strategy.

Other emirates also have manufacturing contributing a higher share to their GDP.

Manufacturing contributes about 16 per cent to Sharjah's GDP, while in Ras Al Khaimah, an industrial hub, the sector accounts for around 27 per cent, Emirates NBD research shows.

"The UAE has succeeded in laying strong foundations for building an effective industrial sector that supports economic diversification and sustainability," Dr Al Jaber said. "It has proven its resilience and ability to adapt to change."

Sharp focus on AI

The UAE has also maintained a sharp focus on advanced industries and is relying increasingly on cutting-edge technologies including AI and robotics, as well as advanced materials, as the world faces a new industrial era.

"This is why we launched the UAE’s industrial strategy," Dr Al Jaber said. "In the UAE, we don’t see artificial intelligence as just a tool or a new technology, but as a complete economic sector expected to generate over $1.5 trillion globally by 2040."

During US President Donald Trump’s visit to the UAE, the country launched the first phase of the UAE-US Artificial Intelligence Campus in Abu Dhabi, which is set to be the largest AI hub outside the US.

"This is how the future is built," Dr Al Jaber said. "This is how the UAE leads the industries of the future."