Features

HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Ruler of Dubai, launching the new manuf

HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Ruler of Dubai, launching the new manuf



‘Operation 300bn’ to boost manufacturing in UAE

Focusing primarily on future industries that implement advanced technology, the strategy will work towards advancing the national economy and contributing to the sustainable development

April 2021

In a bid to give its industrial sector a strong boost, the UAE government launched ‘Operation 300bn’, a national industrial strategy aimed at raising the manufacturing sector’s contribution from AED 133 ($36.21 billion) to AED 300 billion ($81.68 billion) over the next 10 years.

The strategy, which will be led by the Ministry of Industry and Advanced Technology, was launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai.

The 10-year comprehensive strategy aims to empower and expand the industrial sector to become the driving force of a sustainable national economy by 2031.

Leading the strategy, the Ministry of Industry and Advanced Technology will roll out programmes and initiatives to support 13,500 industrial small and medium enterprises (SMEs) and will also increase spending on research and development (R&D) in the industrial sector from AED 21 billion to AED 57 billion in the coming years.

Focusing primarily on future industries that implement advanced technology and the Fourth Industrial Revolution (4IR) solutions and applications, the strategy will work towards advancing the national economy and contributing to the sustainable development.

It aims to increase the in-country value through improving and promoting local products on a global level and building an attractive business environment for local and international investors to boost productivity. The plan provides a competitive package of facilities and incentives with the aim of positioning the UAE as a global industrial hub that attracts talents, developers and experts from all over the world.

 

Al Jaber: the new strategy will boost productivity

Al Jaber: the new strategy will boost productivity

NATIONAL BRAND

HH Sheikh Mohammed also launched the Unified Industrial Brand Identity under the slogan ‘Make It in the Emirates’.

 As an extension of the UAE Nation Brand, the new campaign stems from a vision based on distinction, uniqueness and the efforts to build the credentials of UAE products by enhancing their quality and global competitiveness. Ultimately, every product made in UAE will comply with the highest international quality standards and have its rightful place among the best international products.

Sheikh Mohammed said: “The industrial strategy will achieve a giant leap in the UAE’s industrial sector to become the main driving force of the national economy and lead the journey of our next 50 years with greater confidence and speed.”

He added: “The industrial sector is the backbone of large economies, and the UAE has effective resources, policies and leadership to build a global economic base.” 

He noted: “Developing the industrial sector and achieving self-sufficiency in some vital sectors safeguards our economy against emerging global crises.”

Sheikh Mohammed added: “The industrial sector in the UAE has made great strides. With competitive national products we take pride in, our mission is to double our success, increase the in-country value and build an export ecosystem that enhances the global competitiveness of local products.

“We aim to launch new industrial projects in a futuristic framework that creates out-of-the-box solutions to address challenges in a timely manner. Strengthening the industrial sector will establish our economic stability, global status and the future of our next generation.”

HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, said: “The industrial strategy will empower our national industries and lead the country’s efforts to advance the industrial sector as a driver of the national economy over the next 50 years.”

He noted, the industrial sector is an essential source of economic diversification, job creation and a wider sustainable development. He noted: “We need to unify efforts of national teams to achieve the objectives of the strategy and support the country’s sustainable economic diversification efforts.”

He added: “The industrial strategy establishes an ambitious objective to double the industrial sector’s contribution to the GDP and increase the in-country value. The comprehensive national program builds on the country’s investment benefits to lead a sustainable economic development in line with national priorities for the post-Covid-19 phase.”

 

GIANT INDUSTRIAL LEAP

Presenting the Operation 300bn, Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, affirmed that the strategic national programme aims to deliver sustainable economic growth for the UAE’s industrial sector by enhancing its competitiveness at a regional and global level.

He said: “The strategy aims to increase the industrial sector’s annual GDP contribution to AED300 billion by 2031, while boosting productivity, creating new jobs, enhancing local skillsets, and increasing national competitiveness.”

Operation 300bn will support more than 13,500 SMEs by 2031, as they are major drivers of shaping a productive industrial sector and sustainable economy. More than 33,000 industrial enterprises operate in the UAE, comprising 95 per cent of small and medium-sized businesses.

The volume of spending on R&D in the industrial sector will increase from AED21 billion, constituting 1.3 per cent of the GDP, to AED57 billion in 2031, bringing the contribution to the GDP to 2 per cent.  Operation 300bn will focus on promoting existing industries, building on their successes, and enhance their contributions to the GDP, thereby adding value to the UAE’s export ecosystem. At the same time, it will focus on developing a new industrial ecosystem, primarily high-tech industries and 4IR ventures that form the basis of a knowledge-based economy. 

Al Jaber noted: “The strategy will build on the solid foundation of the UAE’s core competencies and unique advantages as a regional logistics, energy and manufacturing hub to enhance the country’s competitiveness at a regional and global level. It will significantly accelerate the process of economic diversification already underway in key industrial sectors; namely industries, where the UAE already has an established presence and expertise, including energy, petrochemicals, plastics, metals and manufacturing; sectors that reinforce the country’s resilience and reduce dependence on global supply chains, such as food, agriculture, water, and healthcare; and industries of the future, including space, biotech, medi-tech and other sectors that are enabled by 41R technologies.”

Future industries that the strategy will focus on are: Space technology, medical supplies and pharmaceuticals, clean and renewable energy (hydrogen production), machinery and equipment, Rubber and plastic, chemicals, metals, advanced technologies manufacturing, electronics and electrical gadgets and food and beverage.

He added: “A key enabler of the strategy will be updating the existing law that regulates industrial affairs in the UAE to encourage local entrepreneurs and attract Foreign Direct Investment. This will allow for 100 per cent foreign ownership of individual enterprises. In addition, SME growth will be targeted by making more flexible, preferred financing available through a number of facilities.”

 

Key Strategy Objectives:

• Build an attractive business environment for local and international investors in the industrial sector

• Expand local industries and enhance competitiveness

• Stimulate innovation and leverage advanced technologies to enhance industrial production

• Position the UAE as a global industrial hub

• Support 13,500 industrial SMEs

• Increase the volume of spending on R&D in the industrial sector from AED21 billion to AED57 billion by 2031, constituting 2 per cent of the GDP

• Improve the UAE’s ranking globally from the 35th to the 25th place on the Competitive Industrial Performance Index (CIP) in the next 10 years

• Future industries to focus on: Space technology, medical supplies and pharmaceuticals, advanced technologies manufacturing, machinery and equipment, rubber and plastic, chemicals, metals, electronics and electrical gadgets

• The Strategy aligns with the In-Country Value (ICV) Program to enhance the industrial goods, boost demand for local products and increase exports.




More Stories



Tags