UAE’s Industrial Sector Flourishes, Igniting Business Opportunities and Economic Growth
The United Arab Emirates (UAE) has again demonstrated its industrial prowess by securing the top position in the Arab region and climbing to the 29th spot globally in the Competitive Industrial Performance Index (CIP) released by the United Nations Industrial Development Organisation (UNIDO). The CIP assesses the industrial performance of 153 countries, benchmarking their ability to produce and export competitively in the global economy.
Under the CIP, the UAE has made notable advancements across multiple indices. It jumped from 124th to 115th in Industrial Export Quality, 98th to 95th in the Share of Manufacturing Value Added in GDP, 110th to 97th in the Share of Manufacturing Exports in Total Exports, and 17th to 14th in the Manufacturing Export per Capita index.
The UAE's impressive climb of two spots from last year's index reflects its commitment to sustainable economic development and highlights its position as a key player in the global industrial sector. The CIP evaluates various indicators such as technological capabilities, innovation, productivity, and trade performance to gauge and compare the strength of industrial competitiveness within countries.
His Excellency Dr Sultan bin Ahmed Al Jaber, Ministry of Industry and Advanced Technology's (MoIAT), praised the UAE's leadership and vision, which has laid solid foundations for sustainable economic development. He highlighted the country's significant progress in industrial development and its strategic position as a global hub for manufacturing and innovation.
Dr Al Jaber emphasised the MoIAT's commitment to stimulating sustainable industrial growth, enhancing investment attractiveness, and fostering regional and international competitiveness. The ministry has implemented a range of strategies, policies, initiatives, and programs aimed at developing the sector, including Make it in the Emirates, the National In-Country Value (ICV) Program, and the Technology Transformation Program.
These initiatives have not only enhanced the enablers and incentives offered by the industrial sector to local and international investors but have also empowered national talents, developed their technical competencies and skills, improved supply chain resilience, and encouraged partnerships between national and international companies to manufacture high-quality products in the UAE.
Furthermore, the UAE's dedication to sustainability and combating climate change was highlighted by His Excellency's mention of the country's commitment to reducing carbon emissions by 40 percent by 2030 and achieving net-zero emissions by 2050. The industrial sector plays a crucial role in attaining these sustainability goals.
Hanan Mansour Ahli, Managing Director of the Federal Competitiveness and Statistics Centre, commended the UAE's consistent achievements in global competitiveness reports. She acknowledged the government's commitment to positioning the UAE as one of the most advanced nations and recognised the efforts of the Ministry of Industry and Advanced Technology, along with its strategic partners, in driving sustainable development.
The UAE's industrial sector has significantly contributed to the country's GDP, with AED 180 billion being generated in the previous year. Non-oil industrial exports have also witnessed substantial growth, estimated to have surpassed AED 170 billion in 2022.
The National In-Country Value Program and the Technology Transformation Program have played vital roles in driving industrial growth. In 2022, six new entities joined the In-Country Value Program, redirecting AED 53 billion into the economy and creating job opportunities for nearly 2,000 UAE nationals. The Technology Transformation Program aims to boost technological product exports by AED 15 billion annually, contributing AED 110 billion to GDP and attracting AED 11 billion in technology investments. The program will also enhance industrial productivity by AED 15 billion per year through automation.
The UAE's remarkable progress in the UNIDO's Competitive Industrial Performance Index reinforces its position as a leader in the Arab region and a global contender in industrial competitiveness. With its continued focus on advanced technology, entrepreneurship, and sustainable future industries, the UAE is set to further enhance the competitiveness of its national industrial sector and attract more investors, aligning with its long-term commitment to a net-zero future by 2050.