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UAE Accelerates Shift to AI-Driven Smart Manufacturing and High-Tech Industries

UAE Accelerates Shift to AI-Driven Smart Manufacturing and High-Tech Industries

The UAE is moving fast toward a new era of industrial growth, shifting from traditional manufacturing to high-tech production in areas like renewable energy, semiconductors, artificial intelligence, and electric vehicles. The direction was set out during the seventh UAE Government Annual Meetings in Abu Dhabi, where leaders highlighted how the country is preparing for the next wave of global competitiveness.

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, explained that the UAE’s industrial strategy is designed to stay ahead of rapid global change. He noted that the country will continue building on its strong foundation in petrochemicals, aluminium, steel, and other resource-based industries, but with a sharper focus on emerging technologies that will define the future.

The plan centers on creating advanced industrial clusters that combine the UAE’s existing strengths with new growth sectors. This includes renewable energy components, semiconductor manufacturing, AI and data-center infrastructure, EV batteries, and next-generation energy storage. These sectors are becoming core drivers of global economic power, and the UAE aims to be one of the leaders shaping that landscape.

Fueled by strong momentum since 2020

This future-focused agenda follows a period of remarkable progress. Since the Ministry of Industry and Advanced Technology was launched in 2020, the UAE’s industrial GDP contribution has jumped 62 percent to reach $120 billion. Industrial exports have climbed 68 percent, hitting $197 billion.

Dr Al Jaber stressed that these results came from coordinated strategy, long-term planning, and strong support from the leadership. The ministry’s role has expanded far beyond oversight. It now acts as a central engine for economic diversification, with priority areas including pharmaceuticals, food security, essential supplies, and supply-chain resilience.

The impact of the In-Country Value programme

A major force behind the sector’s transformation has been the National In-Country Value (ICV) programme. In 2024 alone, it redirected Dh210 billion back into the UAE economy — a 244 percent rise compared to 2020. It has also become a powerful driver of Emiratization, placing 22,000 UAE nationals into private-sector industrial roles.

The programme now spans key industries such as energy, aviation, healthcare, telecom, and infrastructure, ensuring that national spending supports local growth and talent development.

National champions pushing the boundaries

Dr Al Jaber highlighted the role of major UAE companies in pushing industrial growth forward. ADNOC, for example, injected Dh242 billion into the national economy while committing Dh90 billion to local manufacturing in partnership with international firms. TA’ZIZ, ADNOC’s downstream JV, is investing over Dh30 billion in next-generation chemicals and transformation industries. Ruwais Industrial Complex now produces more than 5 million tones of polymers each year, supplying over 50 global markets.

A unified ‘Made in the UAE’ vision

The country’s industrial roadmap comes together through the ‘Made in the UAE’ initiative, which now serves as a national platform linking manufacturers, developers, and investors. Since its launch, it has identified more than 4,800 products that can be produced locally, worth a combined Dh168 billion.

To help these projects move from idea to reality, the ministry partnered with the Emirates Development Bank, which has allocated Dh40 billion in competitive financing. Many of these products come with guaranteed buyers from national companies, reducing risk for manufacturers and accelerating investment.

Recognition on the world stage

The UAE’s progress has earned global attention. In just three years, the country climbed to 27th in the Competitive Industrial Performance Index and ranks first in the Arab world. It also sits fifth globally in the Quality Infrastructure Index, supported by more than 220,000 national standards and 120 accredited laboratories that help ensure global trust in UAE-made products.

A decisive shift to AI-powered smart manufacturing

A major part of the UAE’s strategy is its push toward Industry 4.0 technologies. The country is moving from conventional factories to AI-driven smart manufacturing powered by automation, robotics, and modern production systems. This shift boosts efficiency, improves quality, and strengthens the competitiveness of UAE-made products in global markets.

By blending its established industrial strengths with future-ready AI and high-tech technologies, the UAE is positioning itself not just to participate in global manufacturing — but to lead it. The country’s bet on innovation, agility, and long-term strategy is shaping a new industrial era built on speed, intelligence, and resilience.