Win-Win Situation

The UAE is on its way towards the successful transformation of the country’s industrial sector into a global manufacturing hub, helped by the country’s strategy to further strengthen its industrial sector and boost economic resilience

The ‘Make it in the Emirates’ campaign is an open invitation to investors, innovators and developers to contribute to the UAE’s industry and advanced technology strategy, ‘Operation 300Bn’. The campaign provides them with an opportunity to benefit from the UAE economy’s tremendous and unique value proposition by investing in future industries and advanced manufacturing and exporting UAE products to new global markets.

Operation 300Bn aims to develop the UAE’s industrial sector and enhance its role in stimulating the national economy. It aims to raise the industrial sector’s contribution to the GDP from Dh133 billion to Dh300 billion by 2031. The strategy is aligned with national goals and international commitments relating to advancing sustainable economic growth, deploying clean energy solutions, driving industrial innovation and promoting responsible consumption and production. It is the largest and most comprehensive plan for developing the UAE’s industrial sector and enhancing its role in stimulating the national economy.

Over the past few years, the UAE’s industrial sector has grown rapidly despite global economic slowdown and pandemic-driven headwinds. To elaborate this point, in 2021, 220 new factories went into service and began production as the government rolled out measures to improve the ease of doing business and ensuring the industrial sector’s access to financing.

The strong performance comes on the back of the UAE’s drive towards making it the go-to investment destination and to fast track its position as a global hub for manufacturing and industry. It offers a solid foundation for business development, with access to major entities’ supply chains, a competent and well-educated workforce, a stable regulatory framework and state-of-the-art infrastructure, in an environment conducive to good business. There is a plethora of reasons to look towards the UAE. The country’s industrial ecosystem is conducive to growth, allowing industrialists to easily access financial, advisory and technical support to establish and develop their businesses. Boasting a diverse energy mix at competitive prices, the UAE continues to top regional and global indices in logistics, transport and communications. It has advanced infrastructure, comprising 10 civilian airports, 105 cargo companies, as well as 12 sea and commercial trading ports capable of handling more than 17 million tons and a cargo capacity of 80 million tons annually. The UAE also ranks high in global indicators that measure economic performance and ease of doing business, in addition to enjoying a strong credit rating. The country’s legislative framework is considered the most advanced in the region and its strategic location makes it a global link.

The UAE, a melting pot of more than 200 nationalities, enjoys highly-skilled human resources, energy resources, raw materials, a strategic geographic location, advanced infrastructure, transparent laws, reliability and credibility, competitive financing, an ideal quality of life in a diverse, tolerant and secure society, strategic economic partnership agreements and cooperation and trade agreements with various countries around the world. All of these highly sought-after qualities have enabled the UAE to develop its national industry, attract investments, build partnerships, and enter new markets. Building on these, the Make it in the Emirates campaign is geared towards establishing 13,500 industrial companies over the next 10 years in addition to increasing spending on research and development across the industrial sector.

The Ministry of Industry and Advanced Technologies (MoIAT), in partnership with Emirates Development Bank (EDB), offers industrial investors, innovators and entrepreneurs to receive significant financial and advisory support from EDB. The bank is the financial driver of Operation 300Bn and provides a wide variety of services to industrial players. Services include financing advanced technology and equipment, sponsoring machinery and equipment upgrades, especially those involving Fourth Industrial Revolution (4.0) applications, as well as green finance, business expansion, structured financing and capital investment, feasibility studies and business incubators.

The strategy aims to develop the UAE’s industrial sector, increase its in-country value (ICV), establish the UAE as a global hub for future industries, build the reputation of the UAE’s industrial products through the promotion of exports to global markets and create quality job opportunities in the industrial sector. Furthermore, there is an effort through the campaign to increase the efficiency and sustainability of the production cycles and supply chains by driving research and development (R&D), establishing a comprehensive system of specifications and standards to create an integrated quality infrastructure for the industrial sector, as well as implementing sustainable industrial policies that reduce resource consumption, and support climate action and carbon neutrality efforts.

The main objectives of the strategy aim to create a relevant and attractive business environment for local and international investors in the industrial sector, support the growth of national industries and enhance their global competitiveness, stimulate innovation by accelerating advanced technology adoption across the industrial value chain to upgrade systems and solutions, boost productivity and forge competitive advantages in new areas, build on the solid industrial foundations that have helped fortify the UAE’s position as a global leader in industries of the future, cultivate a culture of innovation in the ministry, and provide a comprehensive array of administrative services in accordance with the highest standards of quality, efficiency and transparency. In order to turn these objectives into fruition, the Ministry is focusing on 11 vital industrial sectors. Under the heading of stimulating growth, the sectors include food, beverage and agricultural technology, pharmaceuticals, electrical equipment and electronics. Within advanced manufacturing, it includes increasing productivity, boosting economic contribution and creating job opportunities, petrochemicals and chemical products, rubber and plastics and machinery and equipment. Finally, the sectors for creating a conducive environment for developing industries of the future include hydrogen, medical technology and space technology.

Leveraging the UAE’s competitive advantages

A leadership that supports the industrial sector’s development, looks to the future with a positive outlook, provides and focuses on ensuring stability and a flexible and encouraging environment that achieves the best results

Ongoing efforts to enhance ease of doing business and reduce costs

Reliable and credible laws and policies that protects investors

A commitment to environmental protection and sustainability

Financing opportunities, technical support, business incubator

Strategic geographic location, export capabilities and comprehensive strategic partnerships

Business environment that supports investors and entrepreneurs

Reliable access to raw materials

as well as traditional and renewable energy

Advanced regulatory framework that attracts foreign investments

Highly qualified and skilled workforce

World-class integrated transportation and logistics infrastructure

Excellent quality of life in a diverse, tolerant and safe society

World-class communication and information technology infrastructure

— ali@khaleejtimes.com