The United Arab Emirates (UAE) is undergoing a transformative industrial shift, transitioning from traditional manufacturing to cutting-edge, technology-driven sectors. This strategic pivot, unveiled at the seventh UAE Government Annual Meetings in Abu Dhabi, underscores the nation’s commitment to renewable energy, semiconductors, artificial intelligence (AI) components, and electric vehicles. Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, articulated this vision, emphasizing the integration of the UAE’s existing strengths in petrochemicals, aluminum, and steel with emerging high-tech industries. Since the establishment of the Ministry of Industry and Advanced Technology in 2020, the industrial sector has seen a 62% surge in GDP contribution, reaching $120 billion, and a 68% increase in industrial exports, totaling $197 billion. A cornerstone of this success is the National In-Country Value (ICV) program, which redirected Dh210 billion into the national economy in 2024, fostering Emiratisation and supporting key sectors like energy, healthcare, and aviation. The ‘Made in the UAE’ initiative has further galvanized local manufacturing, identifying 4,800 products worth Dh168 billion for domestic production. The UAE’s global competitiveness has also been bolstered, with significant advancements in the Competitive Industrial Performance Index and the Quality Infrastructure Index. Dr. Al Jaber highlighted the shift towards smart manufacturing, leveraging AI and Fourth Industrial Revolution technologies to enhance production efficiency and global competitiveness.
UAE shifts from traditional to smart manufacturing with AI, semiconductors focus
