Abu Dhabi's Industrial Sector Flourishes With A 51% Increase In Licenses

New data from the Abu Dhabi Chamber highlights a significant surge in industrial licensing within the emirate, excluding free zones, throughout 2023. The statistics show a 51 percent increase in the issuance of new licenses, totaling 363 by the year's end. This surge underscores Abu Dhabi's growing stature as a regional industrial hub, largely attributed to the implementation of the Abu Dhabi Industrial Strategy. This strategy, led by H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, aims to bolster the industrial sector's contribution to the emirate's GDP.

The Abu Dhabi Industrial Strategy sets forth ambitious objectives to enhance the manufacturing sector's size to AED172 billion, generate 13,600 skilled jobs, and elevate Abu Dhabi’s non-oil exports by 143 percent to AED178.8 billion by 2031. Additionally, it aims to improve the UAE's standing in global industrial competitiveness indicators. Currently, the country ranks first regionally and 29th globally on the UNIDO Competitive Industrial Performance Index.

Foreign companies are increasingly making their mark in Abu Dhabi's industrial sector, with 46 foreign firms participating in 15 different industrial activities in 2023. Mining support services have emerged as a leading area, attracting 13 foreign companies. The chemicals and basic metals manufacturing sectors also witnessed notable foreign company involvement, with five and four companies respectively engaging in these areas.

The diversity of industrial activities in Abu Dhabi is broad, covering sectors from wood and wood product manufacturing (excluding furniture) to computer, electronic, and optical product manufacturing. This extensive range includes paper and paper product manufacturing; rubber and plastic product manufacturing; fabricated metal product manufacturing (excluding machinery and equipment); waste collection, treatment, disposal, and material recovery; beverage manufacturing; machinery and equipment manufacturing; food product manufacturing; other non-metallic mineral product manufacturing; electricity, gas, steam, and air conditioning supply; and water collection, treatment, and supply.

This growth in industrial licensing and foreign company participation reflects Abu Dhabi's strategic efforts to diversify its economy and reduce reliance on oil revenues. The Abu Dhabi Industrial Strategy not only aims to expand the industrial sector but also seeks to position the emirate as a leader in global industrial competitiveness.

With inputs from WAM