His Highness Sheikh Khaled bin Mohamed bin Zayed launches Abu Dhabi Industrial Strategy
His Highness Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council and Chairman of the Abu Dhabi Executive Office, has launched the Abu Dhabi Industrial Strategy to strengthen the emirate’s position as the region’s most competitive industrial hub. The strategy, via the six programmes, will also create 13,600 skilled jobs, with a focus on Emirati talent, and boost Abu Dhabi’s trade with international markets, with a goal to increase Abu Dhabi’s non-oil exports by 143 per cent to AED178.8 billion by 2031.
Multiple initiatives, including a new circular economy regulatory framework, as well as new green policies and incentives, will help continue Abu Dhabi’s transition towards a smart, circular economy, powered by an industrial sector that champions responsible production and consumption across waste management, parts supply, and manufacturing.
The Abu Dhabi Industrial Strategy catalyses value creation and ensures cost competitiveness. And with the combination of Abu Dhabi’s enabling public-private partner business ecosystem and investor-friendly regulations, we are ushering in a new era of economic growth.”
While enhancing sustainability across the ecosystem in line with the UAE Net Zero by 2050 and the National Climate Change Strategy, the manufacturing industry’s ongoing evolution will be accelerated by the integration of advanced Industry 4.0 technologies to spur growth, competitiveness and innovation.
The strategy’s initiatives will also advance the emirate’s development into a global hub for future industries, with a focus on seven targeted manufacturing sectors: chemicals, machinery, electrical power, electrical equipment, transportation, agri-foods, and pharmaceuticals.
Six transformational programmes will drive growth and innovation, boost skills, strengthen the ecosystem for local manufacturers, ease access to global markets, and advance the transition to a circular economy.
Circular economy: The circular economy programme will drive industry-wide sustainability by enabling responsible industrial production and consumption. A robust circular economy regulatory framework for waste, recycling, and consumption will be developed and implemented, alongside policies that encourage ESG (environmental, social and governance), green procurement, and incentives for improved environmental sustainability.
Industry 4.0: The Industry 4.0 programme will accelerate business growth through the widespread adoption of new technologies and processes. Their integration will spur competitiveness and innovation, backed by initiatives including a smart manufacturing funding programme, a smart assessment index, and competency centres that provide training and knowledge sharing.
Talent development: As well as creating 13,000 skilled jobs by 2031, with a focus on Emirati talent, the talent development programme will assess industry-wide competencies, and offer upskilling programmes to fill skills gaps and meet future needs. Job placement programmes will offer rewarding career pathways in high-demand areas.
Ecosystem enablement: Ecosystem enablers include a digital geographic information system (GIS) mapping for industrial land search and a unified inspection programme for quality control. Further enhancements to ease of doing business is also a key focus, through reimbursement incentive programmes for government fees, land rebates, R&D, and tax, as well as streamlining customs processes and costs, and introducing regulatory reform around industrial and housing laws.
Homegrown supply chain: The homegrown supply chain programme will build industrial sector resilience by increasing self-sufficiency and promoting domestic products. The already extensive Abu Dhabi Golden List, which encourages government procurement of high-demand, locally manufactured products, is being expanded; whilst access to foreign markets will be eased through a comprehensive economic partnership agreement (CEPA), as well as a bilateral trade agreement programme. Locally manufactured products will also be purchased and provided as part of foreign aid.
Value chain development: To drive local infrastructure development for end-to-end integration, a supply chain equity investments fund will be established. In addition, offsets will be offered to support industrial funding, and the Abu Dhabi Channel Partners initiative will incentivise foreign direct investment (FDI). Infrastructure enhancement progammes in Al Ain and Al Dhafrah will further strengthen the ecosystem.
Abu Dhabi Government will invest AED10 billion across six transformational programmes to more than double the size of Abu Dhabi’s manufacturing sector to AED172 billion by 2031 by increasing access to financing, enhancing ease of doing business, and attracting foreign direct investment.