UAE launches Operation 300Bn to raise industrial sector’s contribution to Dh300 billion
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, launched the Industrial Strategy “Operation 300bn”.
“Operation 300bn”is a 10-year comprehensive strategy aims to empower and expand the industrial sector to become the driving force of a sustainable national economy, increasing its contribution to the GDP from the current AED133 billion to AED300 billion by 2031.
Leading the strategy, the Ministry of Industry and Advanced Technology will roll out programmes and initiatives to support 13,500 industrial small and medium enterprises (SMEs).
Focusing primarily on future industries that implement advanced technology and the Fourth Industrial Revolution (4IR) solutions and applications, the strategy will work towards advancing the national economy and contributing to the sustainable development.
It aims to increase the in-country value through improving and promoting local products on a global level and building an attractive business environment for local and international investors to boost productivity. The plan provides a competitive package of facilities and incentives with the aim of positioning the UAE as a global industrial hub that attracts talents, developers and experts from all over the world.
Sheikh Mohammed bin Rashid Al Maktoum also launched the Unified Industrial Brand Identity under the slogan ‘Make it in the Emirates’. As an extension of the UAE Nation Brand, the new campaign stems from a vision based on distinction, uniqueness and the efforts to build the credentials of UAE products by enhancing their quality and global competitiveness. Ultimately, every product made in UAE will comply with the highest international quality standards and have its rightful place among the best international products.
Sheikh Mohammed bin Rashid Al Maktoum said, “the industrial strategy will achieve a giant leap in the UAE’s industrial sector to become the main driving force of the national economy and lead the journey of our next 50 years with greater confidence and speed.”
He added, “the industrial sector is the backbone of large economies, and the UAE has effective resources, policies and leadership to build a global economic base.”
He noted that “developing the industrial sector and achieving self-sufficiency in some vital sectors safeguards our economy against emerging global crises.”
He added, “the industrial sector in the UAE has made great strides. With competitive national products we take pride in, our mission is to double our success, increase the in-country value and build an export ecosystem that enhances the global competitiveness of local products.”
“We aim to launch new industrial projects in a futuristic framework that creates out-of-the-box solutions to address challenges in a timely manner.” He stressed that “strengthening the industrial sector will establish our economic stability, global status and the future of our next generation.”
Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, said, “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.”
Presenting a giant developmental leap, he noted, the industrial sector is an essential source of economic diversification, job creation and a wider sustainable development.
He noted, “We need to unify efforts of national teams to achieve the objectives of the strategy and support the country’s sustainable economic diversification efforts.”
Operation 300bn: Giant Industrial Leap
Presenting the Operation 300bn, Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, affirmed that the strategic national programme aims to deliver sustainable economic growth for the UAE’s industrial sector by enhancing its competitiveness at a regional and global level.
He said, “The strategy aims to increase the industrial sector’s annual GDP contribution to AED300 billion by 2031, while boosting productivity, creating new jobs, enhancing local skillsets, and increasing national competitiveness.”
Operation 300bn will support more than 13,500 SMEs by 2031, as they are major drivers of shaping a productive industrial sector and sustainable economy. More than 33,000 industrial enterprises operate in the UAE, comprising 95 percent of small and medium-sized businesses.
The volume of spending on Research and Development in the industrial sector will increase from AED21 billion, constituting 1.3 percent of the GDP, to AED57 billion in 2031, bringing the contribution to the GDP to 2 percent.
Operation 300bn will focus on promoting existing industries, building on their successes, and enhance their contributions to the GDP, thereby adding value to the UAE’s export ecosystem. At the same time, it will focus on developing a new industrial ecosystem, primarily high-tech industries and 4IR ventures that form the basis of a knowledge-based economy.
Al Jaber noted, “the strategy will build on the solid foundation of the UAE’s core competencies and unique advantages as a regional logistics, energy and manufacturing hub to enhance the country’s competitiveness at a regional and global level. It will significantly accelerate the process of economic diversification already underway in key industrial sectors, 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, medi-tech and other sectors that are enabled by 41R technologies.”
He noted that Operation 300bn aims to increase the UAE’s global ranking on the Competitive Industrial Performance Index (CIP).
Vision and Objectives
Seeking to maximise the industrial sector’s revenue, Operation 300bn is a nationwide action plan to strengthen enabling mechanisms and tools, and build the most resilient logistical and legislative framework of its kind. The plan provides an unprecedented package of facilities, incentives and customs exemptions with the aim of attracting foreign investments to the industrial sector, creating a world-class industrial ecosystem.
Under the Unified Industrial Brand Identity, the strategy aims to transform the country’s industrial products into a reflection of the UAE’s identity, built on the pursuit of excellence through unified national standards, and highlight the unique features and superior quality of products made in UAE. It also aims to enhance the competitiveness of national products, increase their recognition, encourage demand and promote them internationally.
Four Main objectives
The industrial strategy “Operation 300bn” pursues four main objectives. The first is to create an attractive business environment for local and international investors in the industrial sector through updating the Industrial Law to support local entrepreneurs and attract foreign direct investment.
The law will include flexible conditions to provide opportunities to small and medium-sized companies and industrial enterprises while allowing foreigners to own 100 percent of their industrial establishments. To achieve the first objective, the strategy will also offer financing facilities to priority industrial sectors, develop industrial quality infrastructure to support existing and new local industries as part of a vision that forecasts enablers and mechanisms to address future challenges with the aim of driving sustainable industrial development and enhancing competitiveness.
The second objective is 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.
The third objective is to encourage innovation, and the adoption of advanced technology and Fourth Industrial Revolution (4IR) solutions through setting the advanced technology agenda to accelerate the development of innovative products, taking into consideration all factors that ensure commercial viability. The strategy also looks to design programmes to adopt 4IR solutions to boost the productivity of priority industries as part of the third objective.
The fourth objective is 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 leading business and technology hub.
UAE’s Unified Industrial Identity – Make it in the Emirates
As part of industrial strategy, the Unified Industrial brand Identity is an extension of the UAE Nation Brand that stems from a vision based on distinction, uniqueness and the efforts to build the credentials of UAE products by enhancing their quality and global competitiveness.
The Unified Industrial Identity supports the diversification of the national industrial base, and contributes to positioning the country as an incubator of innovation and creativity. Ultimately, every product made in UAE will comply with the highest international quality standards and have its rightful place among the best international products.
Just as the UAE Nation Brand seeks to share the UAE’s story with the world as a pioneer in sustainable development, the Unified Industrial Identity aims to develop UAE products within an attractive industrial sector that has limitless potential for growth, and establish the sector as an integral part of the UAE’s unique success story and a key contributor to the country’s development journey.
As part of the Unified Industrial brand Identity, ‘Make it in the Emirates’ is the first campaign of its kind in the UAE that encourages local and international investors, innovators and developers to benefit from the facilities and incentives offered by the country’s industrial sector, and to fulfill their ambitions of developing, manufacturing and exporting their products.
The unified industrial brand identity aims to create a sense of pride in locally made products, so that the ‘Made in UAE’ label on a product motivates people around the world to buy it for its superior quality.
The new Identity seeks 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 highly diversified 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 – based on the culture of possibilities that enables any innovative idea to be translated into reality. The manufacturer is adventurous, thinks outside the box and is willing to seize any available opportunity to invest in the industrial sector while benefiting from the UAE’s conducive investment environment and strategic location.
As a national strategic framework, the Identity serves as a guarantee, protection and support framework that subjects all UAE products to the same specifications based on the highest standards of quality and excellence. It also provides exceptional support mechanisms to ensure product conformity with national and international quality standards, enhancing their local, regional and global competitiveness.