Beyond Oil: UAE’s Industrial Sectors Drives Economic Transformation

The Minister of Industry and Advanced Technology, Dr. Sultan bin Ahmed Al Jaber announced on February 1st this year that the sector’s contribution to the UAE’s GDP has risen by 57% and has now exceeded $56.7 billion. At the same time, the country’s industrial exports have increased by 63% surpassing $51.3 billion since the Ministry of Industry and Advanced Technology was established in 2020.

A major driver of this growth is ‘Operation 300 bn’, a strategy designed to expand the UAE’s industrial base. “It has been a game changer in enhancing country value and industrial production ensuring sustainable supply chains and self-sufficiency,” said Dr. Al Jaber.

Additionally, the ‘Make it in the Emirates’ initiative has successfully identified over 2,000 products worth $38.61 billion for local manufacturing. The program has already secured $1.89 billion in purchases and attracted $5.4 billion in industrial investments.

Abu Dhabi which accounts for nearly half of the UAE’s industrial sector is also taking major steps. In 2023, its industrial sector contributed 90.8 billion dirhams ($24.72 billion) to the emirate’s GDP, a 9.7% year on year increase. The government aims to nearly double this to 171 billion dirhams by 2031. 

Rashed Al Blooshi, Undersecretary at Abu Dhabi’s Department of Economic Development stated last year that “Oil is important to us in Abu Dhabi, but investing in non-oil sectors will have a bigger impact on the GDP and we will sustain the growth.”

Since 2021, the UAE has focused on expanding non-oil exports by negotiating bilateral trade agreements. The UAE is consolidating its position as a regional industrial leader through reduced dependence on oil and rising global economic influence.