UAE's Industrial Vision Gets Boost With $10B Investment To Build 150 Industries In Ras Al Khaimah

The UAE Government's Industrial Vision, which aims to increase the industrial sector's contribution to GDP to Dh300 billion by 2031, has received a solid boost with a $10 billion (Dh36.7 billion) investment by an Indian conglomerate into developing 150 industries in Ras Al Khaimah.

India's Rana Group has launched Erisha Smart Manufacturing Hub that will see the development of 150 large industries with an investment outlay of $10 billion at Al Ghail Industrial Area in Ras Al Khaimah in the next five years.

It recently signed an agreement with Ras Al Khaimah Economic Zones (RAKEZ) to acquire the licence and the industrial plots for the development of the industries. The ground-breaking ceremony that marks the beginning of the construction of the project has taken place recently, marking a new era by transforming the UAE's import-dependent economy to an export-orient one.

Once commissioned, these manufacturing units will collectively generate a combined sales turnover of up to $6 billion (Dh22 billion) that will boost the industrial output of the UAE, increase exports and help the 2nd largest Arab economy to become more self-reliant and sustainable.

This will be the single largest investment by an Indian conglomerate in the UAE's manufacturing sector, that will boost the Indo-UAE economic relationship and cross-border investment and trade cooperation. This comes more than three and a half years after the two countries signed the historic Comprehensive Economic Partnership Agreement (CEPA) in 2022.

The development of the new industrial belt is in line with the UAE Government's industrial vision to increase the manufacturing sector's contribution to the UAE's $483 billion Gross Domestic Product (GDP).

The UAE's industrial vision is to become a global hub for future industries, driven by Operation 300Bn, which aims to increase the industrial sector's contribution to GDP to Dh300 billion by 2031. Key strategies include adopting the Fourth Industrial Revolution (4IR) to foster advanced technology adoption, promoting the 'Make it in the Emirates' initiative to boost local manufacturing and exports, and enhancing In-Country Value (ICV). This vision focuses on economic diversification, attracting investment, creating quality jobs, and building a resilient, diversified industrial base that reflects excellence and supports a sustainable, advanced economy.

The Erisha Smart Manufacturing Hub will be a state-of-the-art facility spanning 15 million square feet with an expansive total construction area of approximately 25 million square feet. The hub will support over 150 industries, focusing on pioneering technologies such as electric and hydrogen vehicle production, renewable energy, eVTOL (electric vertical take-off and landing) aircraft, and semiconductor manufacturing.

The hub will house a wide range of facilities, including hospitals, medical colleges, shopping complexes, hypermarkets, warehouses, office spaces, community centres, banks, and financial institutions.

The mixed-use development will span 335 acres. Once operational, it will contribute an estimated $5–6 billion to the UAE's GDP and generate around 4,000 jobs in Ras Al Khaimah.

“We are thrilled to commence the execution of the Erisha Smart Manufacturing Hub. This project will stand at the forefront of the green energy revolution, significantly contributing to the UAE's net-zero ambitions while fostering a self-sustainable future. Our goal is to set new benchmarks in sustainable industrialization-driving innovation and supporting the global transition to cleaner energy solutions,” Dr. Darshan Rana, Chairman and Managing Director of Erisha E Mobility, said.

“Of the 150 industries, we will own and manage more than half of them, as we have invested our resources in creating Erisha Smart Manufacturing Hub. Some of the manufacturing units will go into production in about a year's time while we expect to complete the project in the next five years.”

Rana Group had earlier appointed Capital Engineering Design and Engineering Consultants for industrial design and consultancy of the project while GHV Infra was appointed as the Engineering Procurement and Construction (EPC) Contractor for the project.

N3XUS has been appointed consultant for environment, sustainability and governance (ESG) as well as sustainable development goals (SDG) compliance while AINS Group has been hired as architects and professional management consultants (PMC). The collaboration is set to pave the way for the operational expansion of the Group's EV subsidiary - Erisha E Mobility - in the Middle East and Africa, while strengthening its existing business in India.

The development comes a few months after the United States slapped higher import duties on Indian-manufatured products, which puts Indian products in a disadvantageous position when compared to countries where the import duties are relatively lower.

“This shift in manufacturing to the UAE is a significant move by India's Rana Group – that could make these products 'Made in the UAE' more competitive for the US market,” says a business analyst requesting anonymity.

“If the US doesn't reduce import duties on goods manufactured in India, this could become a trend for Indian manufacturers to shift their base elsewhere to beat the 50 per cent import duty for goods destined for the US market. In this regard, the UAE – with its world-class connectivity and infrastructure – stands to gain and there could be similar moves by many more Indian companies.”

With its world-class infrastructure and pro-business environment, Ras Al Khaimah Economic Zone (RAKEZ) offers the ideal platform for Erisha E Mobility's global expansion, ensuring that the hub will become a catalyst for progress in the UAE and beyond. The Rana Group remains committed to driving sustainability, innovation, and economic growth.

MENAFN15092025000049011007ID1110064431