The success of the UAE’s industrial strategy will ultimately be realised by the factories it builds, the high-skilled jobs it creates and the high-quality products it makes within the country.
Seen in this light, the second iteration of the Make it with Adnoc Forum was yet another opportunity to connect government support with what local manufacturers actually need. Held in Abu Dhabi on Sunday, the forum brought together industry insiders, investors, partners and officials from the Ministry of Industry and Advanced Technology to find ways to scale domestic manufacturing.
Manufacturing is playing an important role in the UAE’s efforts to diversify its economy and increase self-sufficiency in an increasingly unstable world. In 2021, the ministry launched Operation 300bn with the objective of raising the industrial sector’s contribution to the national gross domestic product from Dh133 billion to Dh300 billion by 2031. Reaching this target requires building and sustaining an ecosystem in which local businesses can grow and compete.
There are several initiatives in place to achieve this – including, but not limited to, the National In-Country Value Programme, or ICV, designed to localise supply chains and push the government’s Emiratisation drive, and Factory Forward UAE, aimed at bringing all the country’s industrial technology transformation programmes on one platform.
However, the success of these initiatives will depend on whether businesses, particularly small and medium enterprises, are able to access funding, more contracts and modern technology. New technology, in particular, is vital to building a strong industrial sector. While government support will help manufacturers increase production, policymakers know that the focus also needs to be on equipping factories with the latest technologies and ensuring continued improvement – both of which are required to produce better goods.
The challenges of the past few years, from Covid-19 to the Iran war, further illustrate how crucial home-grown industries are. The Make it with Adnoc Forum and events like it serve to reduce the UAE’s dependence on foreign suppliers.
Adnoc is already playing an important role in this regard by buying more products from UAE manufacturers and encouraging investment in local production. Since launching its ICV programme in 2018, it has channelled more than Dh307 billion back into the national economy. It has signed about Dh80 billion worth of offtake agreements directed at local manufacturing. And in the first edition of the forum, held in May, it announced Dh200 billion in planned project awards for the 2026-2028 period.
On Sunday, the company unveiled more than Dh60 billion in local manufacturing opportunities until 2030. It also announced substantive changes in its procurement, supplier registration and ICV policies to make it easier for manufacturers, suppliers and investors to compete for its business. “We are inviting companies to build capabilities in the UAE that will serve our industry and country for years to come,” said Dr Sultan Al Jaber, Adnoc’s managing director and group chief executive, and Minister of Industry and Advanced Technology.
These are promising developments – also because they are geared towards ensuring that locally made products meet international standards for quality and pricing, thereby helping manufacturers compete in overseas markets too.
Of course, the proof of the pudding is in the eating. The next iteration of the Make it in the Emirates event – a platform created by the ministry for local and international companies to build and grow their manufacturing businesses in the country – will be held in May next year. It will again offer a clear opportunity to measure progress in investment, business partnerships, factory expansion and job creation.
Over the longer term, it is sustained delivery on these fronts that will determine whether the UAE’s industrial strategy strengthens its economic foundations.