Tuesday 23 March 2021
The UAE has launched the Industrial Strategy 'Operation 300bn'.
The 10-year comprehensive strategy aims to empower and expand the industrial sector to become the driving force of a sustainable national economy, increasing its contribution to GDP from the current AED 133 billion to AED 300 billion by 2031.
Leading the strategy, the Ministry of Industry and Advanced Technology will roll out programs and initiatives to support 13,500 industrial small and medium enterprises (SMEs).
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 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 talent, developers, and experts from all over the world.
Along with the strategy was 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.
Developing the industrial sector and achieving self-sufficiency in vital sectors is expected to safeguard the UAE economy from future global crises. The industrial sector is considered an essential source of economic diversification, job creation, and wider sustainable development.
The UAE has already established itself as an economic capital in the region with world-class digital infrastructure, services, security, and competitive investment benefits.
The industrial strategy builds on the country’s investment benefits and brings together the efforts of the government and the private sector to spearhead the country’s development over the next 50 years.
Operation 300bn will support more than 13,500 SMEs by 2031. More than 33,000 industrial enterprises operate in the UAE, comprising 95% of SMEs.
The volume of spending on research and development in the industrial sector will increase from AED 21 billion, constituting 1.3% of GDP, to AED 57 billion in 2031, bringing the contribution to 2% of GDP.
Operation 300bn will focus on promoting existing industries, building on their successes, and enhancing their contribution to 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 as the foundation of a knowledge-based economy.
The strategy will build on the 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 accelerate the process of economic diversification already under way in key industrial sectors, 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 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.
Existing laws that regulate industrial affairs will be updated to encourage local entrepreneurs and attract foreign direct investment (FDI). This will allow for 100% foreign ownership of individual enterprises. In addition, SME growth will be targeted by making more flexible, preferred financing available through a number of facilities.
Operation 300bn aims to increase the UAE’s global ranking on the Competitive Industrial Performance (CIP) Index.
The industrial strategy aligns with the In-Country Value (ICV) program, which aims to enhance the in-country value of industrial goods and services, boost demand for local products, promote investment in R&D, and incentivize advanced technology adoption across the value chain.
It also seeks to boost the UAE’s exports while reducing reliance on imports and increasing the contribution of industrial SMEs to the national economy.
The strategy is set to significantly increase ICV and redirect funds into the local economy. It will drive the development of specifications and standards to ensure the continued competitiveness and value of locally manufactured products fit for global export markets.