Abu Dhabi Industrial Strategy launched, Dhs10bn earmarked for six programmes

Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council and chairman of the Abu Dhabi Executive Office, recently launched the Abu Dhabi Industrial Strategy.

The strategy will see the Abu Dhabi government invest Dhs10bn across six transformational programmes to more than double the size of Abu Dhabi’s manufacturing sector to Dhs172bn by 2031 by increasing access to financing, enhancing ease of doing business and attracting foreign direct investment.

The strategy, via the six programmes, will also create 13,600 skilled jobs, with a focus on Emirati talent, and boost Abu Dhabi’s trade with international markets, with a goal to increase Abu Dhabi’s non-oil exports by 143 per cent to Dhs178.8bn by 2031.

Mohammed Ali Al Shorafa, chairman of the Abu Dhabi Department of Economic Development (ADDED), said: “Abu Dhabi’s blueprint for a comprehensive industrial strategy is an ambitious vision that will guide the future of the emirate’s manufacturing sector, and shape a resilient and diversified economy for decades to come. In line with  the UAE’s industrial strategy, Operation 300bn, our roadmap will create the ideal environment for businesses to emerge and grow. It addresses our ever-growing productivity goals, helps secure future investor opportunities, safeguards our human capital and boosts job creation, and enables us to pre-empt evolving market conditions and shifting trends.

“The Abu Dhabi Industrial Strategy, which includes plans for a smart circular economy, catalyses value creation and ensures cost competitiveness. And with the combination of Abu Dhabi’s enabling public-private partner business ecosystem and investor-friendly regulations, we are ushering in a new era of economic growth.”

Falah Mohammad Al Ahbabi, chairman of AD Ports Group, said: “Building upon the UAE’s ambitions to develop and enact effective economic strategies that directly impact the growth of the local economy and advance its status as a leading player in international trade and industry, Abu Dhabi’s industrialisation strategy is a tremendous initiative that reflects our wise leadership’s promise towards achieving the sustainable transformation of our economy over the next decade.

“Leveraging the full potential of innovative technologies across the UAE’s industrial landscape, while also driving the development of a robust and diverse manufacturing sector, we will be able to realise the next stage of advancement for our national economy and elevate its position as a leading global industrial power. And while the global economy remains complex and disruptive, thanks to the strategic guidance of the UAE’s leadership, Abu Dhabi’s drive for industrialisation is aligning the emirate on an upward path that is bolstering non-oil GDP growth and at the same time facilitating a fast-growing, dynamic, and job-rich logistics and manufacturing ecosystem.”

 The six programmes will focus on:

Circular economy: The circular economy programme will drive industry-wide sustainability by enabling responsible industrial production and consumption. A robust circular economy regulatory framework for waste, recycling, and consumption will be developed and implemented, alongside policies that encourage ESG (environmental, social and governance), green procurement, and incentives for improved environmental sustainability.

Industry 4.0: The Industry 4.0 programme will accelerate business growth through the widespread adoption of new technologies and processes. Their integration will spur competitiveness and innovation, backed by initiatives including a smart manufacturing funding programme, a smart assessment index, and competency centres that provide training and knowledge sharing.

Talent development: As well as creating jobs with a focus on Emirati talent, the talent development programme will assess industry-wide competencies, and offer upskilling programmes to fill skills gaps and meet future needs. Job placement programmes will offer rewarding career pathways in high-demand areas.

Ecosystem enablement: Ecosystem enablers include a digital geographic information system (Gmapping for industrial land search and a unified inspection programme for quality control. Further enhancements to ease of doing business is also a key focus, through reimbursement incentive programmes for government fees, land rebates, R&D, and tax, as well as streamlining customs processes and costs, and introducing regulatory reform around industrial and housing laws.

Homegrown supply chain: The homegrown supply chain programme will build industrial sector resilience by increasing self-sufficiency and promoting domestic products. The already extensive Abu Dhabi Golden List, which encourages government procurement of high-demand, locally manufactured products, is being expanded; whilst access to foreign markets will be eased through a comprehensive economic partnership agreement , as well as a bilateral trade agreement programme. Locally manufactured products will also be purchased and provided as part of foreign aid.

Value chain development: To drive local infrastructure development for end-to-end integration, a supply chain equity investments fund will be established. In addition, offsets will be offered to support industrial funding, and the Abu Dhabi Channel Partners initiative will incentivise foreign direct investment. Infrastructure enhancement progammes in Al Ain and Al Dhafrah will further strengthen the ecosystem.