UAE Unveils Major Industrial Financing Push to Drive Economic Diversification
Dh40 Billion in Financing, New Growth Fund, Focus on AI, and Regional Industrial Alliances
The UAE has pledged more than Dh40 billion ($10.89 billion) in funding over the next five years to help industrial enterprises and improve the country’s manufacturing skills as part of a broad push to bolster its industrial sector. At the “Make it in the Emirates” forum in Abu Dhabi, Minister of Industry and Advanced Technology Dr. Sultan Al Jaber made the announcement.
Dr. Al Jaber underlined that creating a robust, knowledge-based economy requires manufacturing investment.. “Every investment in the industrial sector triggers a ripple effect—driving growth across interconnected sectors,” he noted.
Key Financing and Investment Plans
The UAE Development Bank, First Abu Dhabi Bank, Mashreq, Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Wio Bank are among the top banks that will provide competitive loans for industrial businesses in order to support this expansion. Growth in key industries like advanced technology, manufacturing, healthcare, and food security is anticipated to be accelerated by these funds.
Furthermore, the UAE is introducing the Emirates Growth Fund, an investment vehicle under the Emirates Development Bank worth Dh1 billion. The empowerment of SMEs in high-priority industries will be the main goal of this program.
Ambitious Industrial Targets
Dr. Al Jaber revealed that the UAE aims to boost procurement opportunities in the industrial sector to Dh168 billion over the next decade and localize the production of more than 4,800 products. This action advances the nation’s overarching objective of strengthening its domestic manufacturing sector and lowering reliance on imports.
The UAE’s industrial strategy, known as “Operation 300bn,” was unveiled in 2021 with the goal of making the country a major base for manufacturing worldwide by 2031. Growth is targeted in a number of industries, including chemicals, building materials, transportation, manufacturing, food, medicines, and more.
Regional Collaboration and Economic Impact
The UAE is also fostering regional collaboration through its industrial partnership with Jordan, Bahrain, Egypt, Morocco, Qatar, and Turkey, driving $5 billion worth of joint projects in strategic sectors and enhancing regional supply chain integration.
The outcomes of this multifaceted strategy are already apparent. Industrial exports increased 68% from 2021 to Dh197 billion in 2024. Over Dh347 billion has been spent domestically under the UAE’s In-Country Value (ICV) program, giving Emiratis over 22,000 new jobs.
Using Innovation and AI to Lead the Future
Dr. Al Jaber emphasized the UAE’s dedication to innovative sectors, especially robotics and artificial intelligence. He said that the UAE is considering artificial intelligence (AI) as a separate economic sector that is expected to generate over $1.5 trillion in global contributions by 2040, rather than merely as a technology.
To reinforce this vision, the country launched the first phase of the UAE-US Artificial Intelligence Campus in Abu Dhabi—set to become the largest AI hub outside the United States.
Growing Industrial Contribution Across Emirates
The manufacturing sector continues to be a cornerstone of non-oil economic growth. Its 2024 GDP contribution in Abu Dhabi alone was the largest on record, amounting to Dh111.6 billion, or 9.5% of the emirate’s overall GDP. Strong industrial success is also being observed in other emirates, with the sector accounting for 27% of GDP in Ras Al Khaimah, a major industrial zone, and 16% of GDP in Sharjah.
The UAE is blazing a trail for sustained, varied economic growth through strategic funding, business alliances, and investments in cutting-edge technology. “The UAE has established solid foundations for a sustainable industrial future—and it is prepared to lead the industries of tomorrow,” Dr. Al Jaber confirmed.