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Industrial Materials Equipment and Machinery Design and Construction United Arab Emirates

United Arab Emirates Manufacturing Growth

At the May 4 opening of the fifth “Make it in the Emirates” forum, Minister of Industry and Advanced Technology Dr. Sultan al-Jaber announced that the UAE industrial exports reached $71 billion in 2025.

The United Arab Emirates (UAE) is a relatively young nation that was formed in 1971 but has since undergone a remarkable transformation, evolving from an oil-dependent economy into a diversified and innovation-driven industrial hub. At the heart of this transformation lies the manufacturing sector, which has steadily grown to become a strategic pillar of economic development.

Manufacturing activities were limited and focused primarily on basic industries such as construction materials and food processing. Between 2000 and 2015, the UAE’s manufacturing sector experienced accelerated growth. The UAE invested heavily in infrastructure, ports, and free zones to attract foreign investments, and introduced long-term national strategies aimed at boosting manufacturing. Manufacturing output increased significantly, supported by political stability, strong economic confidence, and rising demand across sectors.  

Key industries during that phase included aluminum production, petrochemicals, metals, plastics, and food processing. The UAE emerged as one of the world’s leading aluminum producers, while its petrochemical sector expanded alongside oil and gas development. Despite this growth, manufacturing still faces structural challenges, including reliance on imported raw materials and competition from global producers. Nevertheless, the sector became an essential contributor to non-oil GDP and exports, playing an increasingly important role in the country’s economic diversification strategy.

One of the most significant initiatives was Operation 300bn, launched in 2021. This ambitious program aims to increase the industrial sector’s contribution to GDP from AED 133 billion ($36 billion) to AED 300 billion ($81.7 billion) by 2031. In recent years, the UAE has embraced Industry 4.0, incorporating advanced technologies and smart manufacturing. Companies in the UAE are increasingly adopting technologies like the Industrial Internet of Things (IIoT), robotics, and digital twins. These innovations are helping local manufacturers move up the value chain and compete in high-tech industries

Another key industry that evolved in the UAE was defense manufacturing, with heavy investments in developing the EDGE Group of companies. EDGE emerged as a key global player offering, with a portfolio of over 250 solutions across the air and space domains, covering propulsion, autonomy, space technologies, smart weapons, and overall products. At its six-year anniversary in 2025, EDGE revenues reached $4.9 billion with exports nearing 76 percent. 

As part of the UAE’s push to bolster its capabilities following regional conflicts, Crown Prince Sheik Khaled bin Mohammed Al Nahyan and Mubadala Investment Co. Chief Executive Officer Khaldoon Al Mubarak, and other top officials in Abu Dhabi, held preliminary discussions at the Make It In The Emirates event to discuss creating a new defense-focused investment vehicle to centralize efforts to build stakes in global defense manufacturers and expand domestic production. 

Opportunities for U.S. business: 

  • Automation and Manufacturing Processes
  • IT and Cybersecurity systems
  • Research & Development
  • Supply Chain and Logistics
  • Product development and IP co-ownership 

 

Learn More at Major Events in the UAE: 

  • Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Abu Dhabi, November 2-5, 2026
  • International Defense Exhibition and Conference (IDEX), Abu Dhabi - January 25-29, 2027
  • Dubai Air Show, Dubai, November 15-19, 2027 
  • Make it in the Emirates 2027, Abu Dhabi, dates to be confirmed.

 

For more information, please contact Office.AbuDhabi@trade.gov.