Strengthening of the industrial sector in the United Arab Emirates

published on 26 May 2021 | reading time approx. 2 minutes

On 5 April 2021, Sheikh Muhammad bin Raschid Al Maktum, Vice President and Prime Minister of the United Arab Emirates (UAE) and Ruler of the Emirate of Dubai, launched the “Emirates Development Bank (EDB) Strategy”. This strategy is designed to support the project “Operation 300bn.”, a 10-years plan to ensure, that the industrial sector increases massively. The current contribution to the GDP of 133 billion Dirhams shall increase to 300 billion Dirhams by 2031.

Main objectives of “Operation 300bn”

The revised Industrial Law is one of the main advances and shall create an attractive business environment for investors. The law guarantees foreign investors 100 per cent ownership of their onshore companies, making a local shareholder and partner obsolete.

The aim is to further promote industrial development and the national economy.

The state support through the various strategies and programs mentioned above, is intended to promote the production of local products and the associated potential export. Groundbreaking innovations shall increase and the introduction of new technologies is to further process the productivity of the industrial sector.

Overall, the position of the United Arab Emirates as a leading global center for future industries is to be consolidated through financial support for innovations, technologies and new business fields.

EDB Strategy

The fund will be used to support companies and start-ups, especially in the industrial sector, and to further advance the national economy.

The portfolio, amounting to 30 billion dirhams, will be made available over a period of five years. It is expected to create 25,000 jobs and support 13,500 SMEs (Small and Medium-sized Enterprises). Although the “EDB Strategy” will primarily be of benefit for the industrial sector, it is planned to include sectors beyond this, such as health, infrastructure, food safety and technology.

In addition, it is planned to support SMEs financially through international investment funds.