Abu Dhabi Industrial Strategy Fuels 23% Growth In Manufacturing Sector And Enterprises

The Abu Dhabi Industrial Strategy (ADIS) is significantly boosting the manufacturing sector and enhancing economic diversification in the emirate. Since its inception in June 2022, industrial GDP in Abu Dhabi has increased by 23%, rising from AED90.8 billion in 2022 to AED111.6 billion in 2024. Additionally, the number of industrial enterprises grew by 19.4%, from 925 to 1,104, according to Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED).

Al Zaabi participated in a panel discussion during the opening day of the fourth session of ‘Make it in the Emirates’. He emphasised initiatives and programmes designed to foster an investment climate that accelerates industrial growth and ensures long-term economic resilience. The UAE has developed a robust ecosystem that attracts global talents and high-quality investments, as reflected in significant growth across various sectors, including industry.

Al Zaabi stated that the UAE’s industrial strategy has established frameworks to stimulate the sector with a focus on resilience. This includes addressing emerging trends and challenges through programmes like talent development, financing, ease of doing business, supply chains, In-Country Value (ICV), sustainability, Industry 4.0, and attracting foreign direct investments. "We work closely with the Ministry of Industry and Advanced Technology (MoIAT) to contribute to ‘Operation 300bn’ aiming to raise the industrial sector GDP to AED300 billion by 2031 and align with the UAE’s Net Zero 2050 Strategy," he said.

Abu Dhabi's manufacturing sector increased its contribution to 53% of the UAE’s industrial GDP, which rose by 6.6% to AED210 billion in 2024. This compares to a contribution of 51.3% in 2023 and 46% in 2022. Last year, manufacturing was the largest non-oil contributor to Abu Dhabi’s GDP, accounting for 9.5% of total GDP and 17.3% of non-oil GDP.

A key component of Abu Dhabi's 'Falcon Economy', ADIS is reinforcing its position as a competitive industrial hub in the region. It guides the transition towards Industry 4.0 and smart manufacturing methods. In Q1-2025, new industrial licences increased by 4.7%, reaching 89 compared to last year's corresponding period with 85 licences.

The number of licences transitioning from under-construction to production surged by 65%, reaching 33 compared to Q1-2024's figure of 20. Abu Dhabi is rapidly becoming a global centre for advanced industries and technologies, establishing world-class hubs for finance, advanced manufacturing, AI, and New Energy.

Sector-Specific Clusters

Abu Dhabi is launching sector-specific clusters as part of its initiatives to leverage advanced technologies for future-proofing its economy. These include Smart and Autonomous Vehicles Industries (SAVI), AgriFood Growth & Water Abundance (AGWA), and Health, Endurance, Longevity, and Medicine (HELM). These clusters aim to address pressing needs while ensuring sustainable economic growth.

The strategic efforts under ADIS are not only strengthening Abu Dhabi's industrial capabilities but also positioning it as a leader in technological advancements within the region.

With inputs from WAM