Sheikh Mohammed launches ‘Operation 300bn’ strategy to foster UAE industrial sector

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, has launched the Industrial Strategy “Operation 300bn”.

The 10-year comprehensive strategy aims to empower and expand the industrial sector to become a propeller of a sustainable national economy, increasing its GDP contribution from the current Dhs133bn to Dhs300bn by 2031.

Operation 300bn will result in the the Ministry of Industry and Advanced Technology rolling out programmes to support more than 13,500 SMEs by 2031. Over 33,000 industrial enterprises operate in the UAE, comprising 95 per cent of small and medium-sized businesses.

The volume of spending on research and development in the industrial sector will increase from Dhs21bn, constituting 1.3 per cent of the GDP, to Dhs57bn in 2031, bringing the contribution to the GDP to 2 per cent.

Operation 300bn will focus on promoting existing industries and enhance their contributions to the GDP, while focusing on developing a new industrial ecosystem, primarily high-tech industries and Fourth Industrial Revolution (4IR) ventures.

أطلقنا بحمدالله Operation 300Bn..استراتيجية صناعية للدولة تستهدف رفع مساهمة القطاع الصناعي من ١٣٣ إلى ٣٠٠ مليار درهم خلال العشرة أعوام القادمة بقيادة وزارة الصناعة والتكنولوجيا المتقدمة …تطوير القطاع الصناعي هو تطوير لاستقرارنا الاقتصادي ومكانتنا العالمية ومستقبل أجيالنا pic.twitter.com/ecOSZQpczw

— HH Sheikh Mohammed (@HHShkMohd) March 22, 2021

The four main objectives of the strategy are:

• To create an attractive business environment through updating the Industrial Law to support local entrepreneurs and attract foreign direct investment. The law will include flexible conditions to provide opportunities to SMEs and industrial enterprises, while allowing foreigners to own 100 per cent of their industrial establishments. The strategy will also offer financing facilities to priority industrial sectors, and develop industrial quality infrastructure to support existing and new local industries.
•  To catalyse industrial development and stimulate the national economy through launching a programme to enhance in-country value and increase the demand for UAE products with the aim of boosting their contribution to the GDP, increasing their exports and finding new markets for them.
• To encourage innovation, and the adoption of advanced technology and 4IR solutions through setting the advanced technology agenda to accelerate the development of innovative products. The strategy also looks to design programmes to adopt 4IR solutions to boost the productivity of priority industries.
• To create strong foundations to enhance the UAE’s position as a leading global hub for future industries through designing initiatives that establish the country’s status as a business and technology hub.

Sheikh Mohammed noted that “developing the industrial sector and achieving self-sufficiency in some vital sectors safeguards our economy against emerging global crises.”

Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, added: “The industrial strategy will empower our national industries and lead the country’s efforts to advance the industrial sector as a major driver of the national economy over the next 50 years.”

The UAE’s Industrial Strategy brings together the private and public sectors to re-imagine the future of industries. It is a determination to build our nation’s knowledge and expertise and forge our path towards long-term sustainable growth that benefits people and planet pic.twitter.com/O5BtBM3Cn1

— محمد بن زايد (@MohamedBinZayed) March 22, 2021

He stressed on the necessity to empower youth to adapt technological advancements and harness their talents to expand vital future industrial sectors, artificial intelligence, space technologies, energy and pharmaceuticals.

Meanwhile, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, said: “It will significantly accelerate the process of economic diversification already underway in key industrial sectors; namely industries, where the UAE already has an established presence and expertise, including energy, petrochemicals, plastics, metals and manufacturing; sectors that reinforce the country’s resilience and reduce dependence on global supply chains, such as food, agriculture, water, and healthcare; and industries of the future, including space, biotech, meditech and other sectors that are enabled by 41R technologies. The strategy will significantly reduce the UAE’s reliance on imports in vital industries as it supports the building of new capabilities in future industries.”

Future industries that the strategy will focus on are: Space technology, medical supplies and pharmaceuticals, clean and renewable energy (hydrogen production), machinery and equipment, rubber and plastic, chemicals, metals, advanced technologies manufacturing, electronics and electrical gadgets and food and beverage.

The industrial strategy aligns with the In-Country Value (ICV) Programme, which aims to enhance the in-country value of industrial goods and services, boost demand for local products, promote investment in R&D and incentivise advanced technology adoption across the value chain. It also seeks to boost the UAE’s exports while ensuring reducing reliance on imports and increasing the contribution of industrial SMEs in the national economy.

Sheikh Mohammed bin Rashid also launched the Unified Industrial Brand Identity under the slogan ‘Make it in the Emirates’. The unified industrial brand identity aims to build trust in UAE products by setting stringent production standards that ensure the highest levels of excellence, efficiency and quality, ranking them among similar reputable global products, if not better.

It also encourages the UAE’s business sector to move towards industrial projects and contribute to the development of local industries across the country. The unified industrial identity promotes the adoption of the ‘manufacturer mentality’ among the UAE’s business community – including citizens, residents and foreign investors.