UAE to invest US $49B to accelerate local industry growth, reduce imports

The difficulties facing shippers and logistics services providers over the past ten weeks or so in maintaining goods flows to and from the Gulf Co-operation Council (GCC) of nations, as the missiles and drones have rained down and more recently during the uneasy ceasefire, have brought into sharp focus the fragility of the region’s supply chains.

The United Arab Emirates (UAE), in particular, is being put to the test by economic and geopolitical challenges, the scale of which it has never had to deal with before, and is responding with measures aimed at accelerating its industrial sovereignty and making its supply chains more resilient.

MIITE — ‘Make it in the Emirates’

The federal state, consisting of seven emirates, including Abu Dhabi and Dubai, has announced industrial procurement opportunities over the next decade totaling US$49 billion to boost domestic manufacturing, reduce reliance on imports, and diversify its economy.

It makes provision to “localize” close to 5,000 priority products that can be produced in the UAE, reducing dependence on imports across key categories.

The initiative was announced earlier this month at the ‘Make it in the Emirates’ (MIITE) forum, where the focus was on local manufacturing, supply chain readiness, industrial investment, and a bigger role for UAE-made products in stores, e-commerce platforms, and export markets.

The aim is to create a more solid, local manufacturing base that facilitates the availability of vital goods, lessens exposure to delays in international shipping and logistics bottlenecks, and achieves greater stability in supply chains serving multiple sectors such as retail, healthcare, construction, and industry.

UAE-Made Goods to the Fore

Speaking at the opening of the MIITE forum and alluding to the ongoing crisis in the Middle East, Dr Sultan Al Jaber, the UAE’s minister of Industry and Advanced Technology, commented: “There is a great difference between those who focus only on surviving crises, and those who seize them as opportunities and turn them into new beginnings. In the UAE, we do not simply endure hardships. We emerge from them stronger.”

Held annually, MIITE has grown from an industrial showcase into a platform where procurement pipelines, supply agreements, financing options, and market access opportunities are brought together.

The dominant theme at this year’s event was industrial resilience and supply chain continuity, and increasing the presence of UAE-made products across retail outlets and e-commerce platforms, local media reported.

In an initial phase, this will focus on essential products that have scalable local production potential, including bottled water, dairy products, eggs, fresh and chilled poultry, bread, basic bakery items, flour, locally packaged vegetable oils, and seasonal agricultural products.

Economic Security Cannot be Imported

The new $49 billion industrial procurement commitment will be rolled out over the next decade and will target sectors deemed essential to the country’s economic, food, and health security.

“Economic security cannot be imported -it must be built and protected,” said Al Jaber. “When a vital artery such as the Strait of Hormuz is closed, it does not just affect one region; it impacts the entire global economy. Freedom of international navigation is non-negotiable and cannot be compromised.”

Addressing international investors at the MIITE event, Al Jaber positioned the UAE as a global manufacturing and industrial hub and highlighted the flexibility of its regulatory framework, advanced logistics infrastructure, and strong connectivity with international markets.

He also noted that the contribution of the UAE’s industrial sector reached $54.5 billion, a 70% increase compared to 2021. At the same time, industrial exports rose to $71.4 billion, of which $25.1 billion came from the export of advanced industrial goods.

A $270 million National Industrial Resilience Fund has also been launched, which will create 4,000 jobs and eventually substitute up to $24.5 billion in industrial imports ($820 million a year).

The MIITE forum was also the occasion for TA’ZIZ, a joint venture between Abu Dhabi National Oil Company and the Gulf state’s investment and holding company ADQ, announced US$40.5 billion worth of agreements aimed at expanding UAE chemical production capacity.

They include US$2 billion of financing for the UAE’s first world-scale methanol plant, which is set for completion by 2028. Once operational, the facility is expected to support the development of a domestic chemicals value chain and enable local manufacturing.

DP World in MOU with Agri-Business

Meanwhile, Dubai-based World, which specializes in port terminal operations, maritime services, logistics, and free trade zones, has signed a Memorandum of Understanding with Al Dahra Holding, a multi-national agri-business headquartered in Abu Dhabi, to explore strategic opportunities aimed at strengthening food security and advancing agri-logistics capabilities across the GCC and globally.

“The partnership aligns with broader regional efforts to enhance food security and build more resilient and integrated supply chains across the GCC. With the UAE importing approximately 85–90% of its food, there is a clear need for resilient supply chains to support long-term food security,” a joint statement reads.

DP World and Al Dahra will also explore opportunities to expand and optimize global sourcing corridors across Africa, Eastern Europe, Central Asia, and the Americas.