Government and Private Sector Propel UAE's Industrial Ambitions

With the strong support of the government and private sector, the industrial sector in the UAE has witnessed vigorous financing, which supports industrial growth and attaining the ambitious targets of the "Operation 300 Billion" initiative.

A stable financial backbone is fundamental in sustaining a diversified, resilient economy based on sustainability, innovation, and long-term prosperity. According to the CBUAE, the financing portfolio was AED 89.31 billion in 2023, marking a growth of almost 6.2%, approximately 37% higher than that in 2015, hitting AED 94.86 billion in 2024; total loans to this sector hit a record shadow of AED 94.86 billion in the first nine months of 2024, lending AED 5.53 billion to the manufacturing sector.

To provide adequate space for industrial innovators to promote such innovative projects, partners with industrial technology and innovation-enterprise development institutions like Emirates Development Bank, Khalifa Fund for Enterprise Development, and Muhammad Bin Rashid Establishment for SME Development involved will ensure.

EDB undertakes several initiatives and product lines to support local manufacturing in total. These efforts are in line with the UAE advanced industry vision and the national strategy for advanced industry and technology-directed effort to effectuate the creation of a truly global industrial hub by the year 2031 through Operation 300 Billion.

In the meantime, the KFED nourishes the development of SMEs in the industrial sector by providing finance and specialized training to promote innovation. The Mohammed Bin Rashid Establishment for SME Development also plays a key role by providing flexible financing programs and advisory services to enhance the competitiveness of entrepreneurial ventures.

Jamal Saleh, Director General of the UAE Banks Federation, emphasized the federation’s commitment to supporting the industrial sector, which is central to the country’s economic diversification. He pointed out that under the guidance of the CBUAE, the banking sector has been instrumental in financing industrial growth, focusing on innovative solutions to keep pace with the evolving sector and meet the demands of the Fourth Industrial Revolution, sustainability, and the circular economy.

The industrial sector is already a big contributor to the UAE economy, accounting for over 11% of the country's GDP in 2023. With the supporting frameworks provided by the Ministry of Industry and Advanced Technology, the sector is on track for more further growth with innumerable opportunities to carve out the nation's future.