UAE industrial sector: Cornerstone of sustainable economic growth
UAE's Industrial Sector: A Key Player in Economic Growth
The United Arab Emirates (UAE) is making significant strides in its industry and advanced technology sector, thanks to strong infrastructure, flexible laws, and high standards. This sector is crucial for the country's sustainable economic growth and has increased its contribution to the GDP to 11%, amounting to AED205 billion by the end of 2023.
Operation 300bn and Economic Diversification
Under the National Strategy for Industry and Advanced Technology, known as "Operation 300bn," the UAE has improved its global competitiveness, moving from 35th place in 2019 to 27th globally and first in the Arab world, according to the UNIDO's Competitive Industrial Performance Index.
National In-Country Value Programme
The National In-Country Value (ICV) Programme, part of the "Projects of the 50," has redirected over AED 73 billion into the national economy by Q3 2024. This initiative has supported growth among industrial and service companies and created jobs for over 19,000 Emiratis in the private sector.
Industrial Development and Financing
The Industrial Development Council has simplified licensing procedures and introduced a new industrial law to support small and medium enterprises (SMEs). Industrial financing has expanded, with AED 19 billion provided by the Emirates Development Bank and other institutions. In 2024, AED 9.5 billion was allocated to the sector, including funds for advanced technology and credit solutions.
Make it in the Emirates Forum
The "Make it in the Emirates" Forum has seen significant achievements, with purchase agreements for locally manufactured products reaching AED143 billion by the end of 2023. Manufacturing contracts worth AED62 billion were awarded, and over 300 products were produced and purchased, valued at approximately AED7 billion.
Doubts Revealed
UAE
UAE stands for the United Arab Emirates, which is a country in the Middle East. It is known for its modern cities like Dubai and Abu Dhabi.
GDP
GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year. It helps to measure how well a country's economy is doing.
Operation 300bn
Operation 300bn is a plan by the UAE to grow its industrial sector. The goal is to increase the sector's contribution to the economy to AED 300 billion by 2031.
ICV Programme
ICV stands for In-Country Value Programme. It is a UAE initiative to encourage spending within the country to boost the local economy and create jobs.
AED
AED is the currency of the United Arab Emirates, called the Dirham. It is used for all financial transactions in the UAE.
Industrial Development Council
The Industrial Development Council is a group in the UAE that helps make it easier for businesses to get licenses and start operations. They work to support the growth of the industrial sector.
Make it in the Emirates Forum
The 'Make it in the Emirates' Forum is an event where businesses and government officials meet to discuss and make deals to support local manufacturing and industry in the UAE.
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