As time passes, we are witnessing the emergence of a new normal where economic development, trade, the climate crisis and geopolitics become inextricably interconnected. Nation states are more connected through technology and multipolar agreements – yet more vulnerable to economic and political extremes. Energy independence, food security and resilience are as critical today as they have ever been.
The ‘Make it in the Emirates’ initiative is a national programme launched by the UAE government that is now being proven to deliver the security and confidence our country needs long-term. The programme, which promotes industrial growth and diversification, was unveiled in March 2021 and is a key component of the broader “Operation 300Bn” strategy. The latter aims to increase the industrial sector’s contribution to the UAE’s GDP from AED 133 billion to AED 300 billion by 2031.
.@HHShkMohd also launches 'Make It In The Emirates' – the #UAE's industrial identity to support domestic products and promote the sector globally, aiming to establish the country's industrial competitiveness. pic.twitter.com/oMurOansHG
— Dubai Media Office (@DXBMediaOffice) March 22, 2021
This campaign invites both local and international investors, innovators, and entrepreneurs to engage with the UAE’s industrial sector and take advantage of its outstanding value proposition. As a catalyst for investment, it is of utmost importance to the UAE’s industrial and economic strategy for several reasons. Firstly, it aligns with the country’s vision to diversify its economy and reduce dependence on oil by positioning itself as a global manufacturing hub.
Why the UAE?
The initiative also leverages the UAE’s distinctive competitive advantages and its status as a leading economic hub to attract investments and foster innovation. It offers multiple mechanisms to incentivise inward investment, such as credibility, reliability, transparent laws, solid governance, competitive financing, and an excellent quality of life within a diverse, tolerant, and safe society.
The UAE’s strategic geographical location and advanced infrastructure further bolster its appeal to investors. Furthermore, the initiative provides financial incentives through partnerships with local and international financial institutions, as well as reduced service fees to lower the cost of doing business. To support domestic invention and ingenuity, the strategy focuses on stimulating innovation and integrating advanced technologies into the UAE’s industrial ecosystems.
Catalysing GDP growth
One notable example is the UAE Industry 4.0 programme, which assisted 175 factories in developing roadmaps for technological transformations in 2022 alone. The technology transformation programme aims to facilitate the adoption of advanced technologies in the industrial sector, and its objectives include unveiling over 1,000 technological projects by 2031, increasing advanced technology exports to AED 15 billion, and raising the GDP of advanced technology to AED 110 billion.
The strategy also places great emphasis on advancing exports. The Make It in the Emirates campaign is a concerted effort to encourage both local and international investors to engage in manufacturing and exporting products from the UAE. The success of this approach is evident in the remarkable increase in industrial exports, which have surged by 60 percent to AED 187 billion since the inception of the initiative. In parallel, the UAE has been actively pursuing reduced customs tariffs through comprehensive economic partnership agreements to facilitate the entry of Emirati products into new markets.
Skills and standards
The penetration of global markets also depends on the development of a technologically advanced, highly skilled economy capable of bolstering production. Make It in the Emirates, which lays out objectives for 11 priority sectors, will help the national skills, ecosystem and industrial capabilities by supporting high-growth national industries, attracting foreign investment, and ensuring dedicated financing for local industrial companies.
The strategy also emphasises the importance of nurturing local talent. A prime example is the National In-Country Value (ICV) program, which has resulted in 16,000 Emiratis being employed by ICV-certified companies. The impact of this initiative extends beyond economic indicators – it fosters pride in locally made products and instils trust in UAE goods through stringent production standards.
Moreover, it cultivates a diverse pool of expertise in the local industrial sector and empowers a diversified business sector to pursue industrial ventures.
More than economic growth
However, the Make It in the Emirates initiative is much more than just an economic growth accelerator that generates employment opportunities and boosts exports. It revolves around the development of a robust national value chain across sectors, which is vital for long-term resilience and sustainable progress for the UAE and its people.
By prioritising local manufacturing, the initiative advances the establishment of a self-reliant and diverse economy. It creates an ecosystem that facilitates interaction, innovation, and collective growth for various industries, thereby fostering continuous improvement and development. This comprehensive approach to industrial progress is crucial for ensuring the country’s long-term economic sustainability. It diminishes dependence on imports, strengthens supply chains, and fortifies the economy against global economic shocks.
Furthermore, promoting a culture of innovation and technological advancement equips the UAE workforce with the necessary skills for future jobs, ensuring the country’s competitiveness in the global economy. This is a critical vision for a future where the country is not solely a consumer of global products and technologies but also a significant contributor to global innovation and industrial advancement. This transformation will not only drive economic growth but also enhance national pride, foster sustainable development, and secure the country’s position as a leading global industrial hub for generations to come.
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