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UAE manufacturers ramp up production, fill import gaps during global shocks
Officials highlighted food and pharmaceutical manufacturing among the top priorities, alongside chemicals, equipment and utilities-related industries
- PUBLISHED: Thu 9 Apr 2026, 8:22 PM
UAE manufacturers ramped up production and stepped in to fill gaps left by disrupted imports during recent global shocks, as officials point to a more hard-edged push towards local industry and supply chain security.
“In the past period, there were challenges; conditions were not normal,” said Osama Amir Fadhel, Assistant Undersecretary at the Ministry of Industry and Advanced Technology (MoIAT). “But what we saw from the industrial sector was not just stability, it was adaptability.”
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He added that in several cases, local factories increased output to cover shortages. “Some products that were missing from imports; national factories stepped up, increased production, and filled that gap. It actually gave them a chance to prove their role.”
That experience, officials say, has reinforced how critical local manufacturing has become. Omar Al Nuaimi, acting head of commercial and in-country value at ADNOC, said the shift is no longer theoretical. “Enhancing local manufacturing and building stronger supply chains is no longer just a development direction — it is a practical necessity to ensure business continuity and supply security.”
He pointed to “fast-moving geopolitical challenges” affecting the flow of goods and raw materials globally, adding that companies now need to move faster and be more prepared.
Focus on food, pharma and essential industries
As a result, the focus is narrowing on sectors considered essential to national resilience. Officials highlighted food and pharmaceutical manufacturing among the top priorities, alongside chemicals, equipment and utilities-related industries.
“These are vital sectors… they form the backbone of supply chain sustainability.” Fadhel noted that a large portion of upcoming procurement opportunities — building on Dh168 billion announced previously, will continue to target these areas.
That direction is already reflected in financing patterns. Ahmad Al Naqbi from Emirates Development Bank (EDB) said more than half of the bank’s funding has gone into manufacturing, with food security and healthcare taking a significant share. “Out of about Dh26 billion approved over the past four and a half years, close to Dh20 billion has gone to manufacturing, food security and healthcare.”
No shortages
Officials repeatedly pointed to the UAE’s ability to avoid shortages during recent disruptions as proof the model is working.
“The industrial sector was one of the main reasons we did not see shortages in essential products,” Fadhel explained. ADNOC echoed that, linking uninterrupted operations to localisation efforts.
The company said it has identified Dh90 billion worth of products that can be manufactured locally by 2030, with more than Dh80 billion already contracted and 135 products localised so far.
SMEs move into the spotlight
Small and medium enterprises are also taking on a bigger role. Around 60 per cent of companies participating in the upcoming edition are SMEs, with organisers introducing a dedicated platform for entrepreneurs.
Humaid Matar Al Dhaheri, Managing Director and Group CEO, ADNEC Group, said efforts have focused on bringing smaller players into the ecosystem across all emirates. “We worked with them directly and provided the platform to promote their products.”
Startups selected for the new entrepreneurship platform will be hosted free of charge, following a competitive selection process.
Culture as industry
In a parallel push, officials are also trying to reposition traditional crafts as part of the industrial economy. Mubarak Al Nakhi from the Ministry of Culture said Emirati crafts are being treated as more than heritage. “They are not just something we preserve — they are a productive sector that can contribute to the economy.”
This year’s programme will feature more than 200 artisans, 50 crafts and over 500 products, alongside collaborations aimed at integrating technology into traditional industries.
Financing shifts as needs change
While overall demand for industrial financing has remained steady, banks are seeing a shift in what companies need. “We haven’t seen an increase or decrease in volume,” Al Naqbi said. “But we have seen a change in the type of liquidity required.” There is now more demand for short-term working capital, as well as supply chain and logistics support.
“In the short term, we are focusing more on ensuring liquidity for SMEs and companies involved in logistics and supply chains,” he said, adding that earlier focus had been more on large, long-term industrial projects.
Dh300-billion target still in sight
Despite global uncertainty, officials say the UAE remains on track to expand its industrial base significantly. Fadhel said the sector’s contribution has grown from around Dh138 billion to nearly Dh200 billion, with a target of Dh300 billion by 2031.
“We are moving in the right direction and at a faster pace,” he concluded.
