(MENAFN- Khaleej Times)

The UAE is pivoting its formidable industrial base towards a new frontier of high-tech manufacturing, focusing on renewable energy, semiconductors, AI components, and electric vehicles. The strategic shift was detailed at the seventh edition of the UAE Government Annual Meetings in Abu Dhabi.

Speaking at the seventh edition of the meetings, Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, outlined a future-focused industrial vision that builds on the nation's existing strengths while venturing into high-growth, technology-driven sectors.

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"The world is changing, and the pace of change is accelerating,” Dr Al Jaber said.“What we see today in terms of indicators will not be the same picture tomorrow. The picture changes by the hour. Therefore, we must always anticipate these changes and be ready with sufficient agility to deal with them."

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Building on existing strengths

The minister emphasised that the new industrial strategy will leverage the UAE's established capabilities in petrochemicals, aluminium, steel, and other resource-based industries as a foundation for expansion into advanced manufacturing.

"We are now focusing on developing new industries based on our strong sources such as petrochemicals, aluminium, steel, and rare earth materials,” he explained.

This approach reflects a deliberate strategy to create industrial clusters that integrate traditional strengths with emerging technologies.

The focus on renewable energy, semiconductors, data centre components, AI infrastructure, energy storage batteries, and electric vehicles represents a comprehensive push into sectors that are expected to define global economic competitiveness in the coming decades.

Remarkable growth since 2020

The ambitious future vision is built on a foundation of extraordinary achievements since the Ministry of Industry and Advanced Technology was established in 2020, during the height of the Covid-19 pandemic.

Dr Al Jaber revealed that the industrial sector's contribution to the national GDP has surged by 62 per cent to reach $120 billion, while industrial exports have grown by 68 per cent to hit $197 billion.

"These results did not come from nowhere. They came from hard work, plans, and strategies, and of course, there was a vision and direct support from the wise leadership," Dr Al Jaber stated.

The ministry was created with a clear mandate: to transform the industrial sector from being under mere administrative supervision into a primary engine of the national economy.

Priority was given to sectors with direct impact on GDP, including pharmaceuticals, food security, and essential supplies, while ensuring supply chain sustainability and building a robust quality and standards framework.

The in-country value revolution

A cornerstone of this success has been the National In-Country Value (ICV) programme, which has fundamentally reshaped how national spending flows through the economy.

The programme succeeded in redirecting Dh210 billion into the national economy in 2024 - a staggering 244 per cent increase compared to 2020.

Beyond the financial impact, the ICV programme has become a powerful tool for Emiratisation. The number of UAE nationals working in private sector companies through the programme has reached 22,000, representing a 260 per cent growth rate.

The programme now encompasses key economic sectors including energy, healthcare, aviation, telecommunications, infrastructure, and financial institutions.

National champions leading the way

Dr Al Jaber highlighted the critical role of national companies in driving industrial growth, with ADNOC serving as a prime example of public-private partnership success.

As a national company, ADNOC has contributed over Dh242 billion to the national economy and allocated Dh90 billion specifically for the local manufacturing of products in collaboration with global companies.

"Before the establishment of the Ministry of Industry and before the launch of the Made in the UAE initiative, this was not happening at that time. Each company was working with its own independent strategy. But now the matter has become organized and clear. We want to build our national industrial capacity through this general framework,” Dr Al Jaber explained.

Another major player is TA'ZIZ, ADNOC's downstream chemicals joint venture, which is investing over Dh30 billion in chemical and transformation industries. The Ruwais Industrial Complex now produces more than 5 million tonnes of polymers annually, exported to over 50 countries worldwide.

The 'made in the UAE' platform

Central to the ministry's strategy is the 'Made in the UAE' initiative, which has evolved into a comprehensive national programme uniting developers, manufacturers, and businesses under a unified framework.

Since its launch, the platform has identified over 4,800 products for local manufacturing, with a combined value of Dh168 billion.

To support this ambitious manufacturing push, the ministry has partnered with the Emirates Development Bank to provide competitive financing solutions.

The bank has allocated Dh40 billion to support the financing of national industrial projects, with products guaranteed to be purchased by national companies from the outset - providing manufacturers with assured demand and reducing investment risk.

Global recognition and quality infrastructure

The UAE's industrial transformation has not gone unnoticed on the global stage. Over the past three years alone, the nation has achieved a qualitative leap in the Competitive Industrial Performance Index, advancing five positions to reach 27th globally and first in the Arab world. The country also ranks fifth globally in the Quality Infrastructure Index.

These achievements are underpinned by a sophisticated quality and standards ecosystem that has adopted over 220,000 national standards and accredited 120 laboratories to international specifications.“Today, this system represents the basis of the world's trust and market confidence in products manufactured in the UAE,” Dr. Al Jaber noted.

From traditional to smart manufacturing

A key element of the ministry's approach has been the digital transformation of manufacturing. Dr Al Jaber emphasised the shift from traditional or conventional industries to smart industries based on modern technologies, advanced technological techniques, artificial intelligence, and the Fourth Industrial Revolution.

"Through this, we were able to enable our economy to raise production efficiency and enhance the competitiveness of the local or national product,” he said.

This focus on advanced manufacturing technologies positions the UAE to compete not on cost, but on innovation, quality, and speed-critical factors in the high-tech sectors the nation is now targeting.

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