The future of the UAE industrial economy
The upcoming phase of the industrial economy will be an attractive opportunity for local and international investments. It will ensure to strengthen the UAE’s strategic industrial security, innovation, advanced technology and the applications of the Fourth Industrial Revolution.
The UAE has an efficient system when it comes to the field of investments, especially industrial investments. The UAE’s business environment characteristics such as high standards, transparency, rule of law, and the ability of the UAE economy to prosper with stability are a couple of factors that attract success towards the industrial sector. It has to be noted that the UAE boasts the presence of more than 21 integrated free industrial zones in the UAE.
The determination and attitude of the UAE supports drastically in its Sustainable Development Agenda by launching plans for industry development with the aim of strengthening the role of the latter in the national economy. This is enabled by creating a strategy for the future that is aimed at establishing a highly competitive global economic base. These steps were announced by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. The project was titled “Operation 300 bn” – A 300 billion project to stimulate the industrial sector to be a major channel for the development of the national economy.
The launch of this strategy at this particular time reveals the economic strengths of the UAE, despite the exceptional circumstances the world is going through today. The state has taken this global ordeal as an opportunity to try out the most powerful alternatives, perhaps a great opportunity to realize the importance of shifting from an oil-resource-based economy to new resources based on the industrial economy.
The key components that ensure the UAE’s success in its industrial economy in real time and in the future are the availability of advanced infrastructure, a strong legislative environment, the highest security and safety rates in the world, a strategic geographical location of the state, transport networks and logistics services in accordance with international standards that enhance the ease of export of its industrial products, free zones and various ports and the largest in the world, manufacturing catalysts of high-efficiency raw materials, the availability of skilled labour, low tax rates, as well as the strength of the financial sector in terms of liquidity availability and facilitating financing.
For many years in the industrial economy, the UAE has demonstrated its ability and high efficiency in increasing production and increasing exports, which are the most important indicators and measures of industrial power among countries, thus achieving a prominent position among the major industrialized countries, such as China, Japan, Germany and the United States. With the arrival of its industrial products in different countries of the world, exports of manufactured products within the UAE, which reached more than 170 markets around the world, reached approximately AED 62 billion in the first half of 2020, according to trusted sources and official global reports.
Hence, it can be stated that the UAE has reserved itself a prominent position among the major industrialized countries, through its interest in industrial infrastructure, the establishment of industrial zones, and overcoming the obstacles to the progress of the industrial sector of facilities and legislation, and the result was the UAE’s success in attracting many global investments, becoming the preferred destination for investors in the Middle East and North Africa.
Author : Manahel Thabet
Published April 09, 2021
Al Bayan Newspaper