The UAE is developing a new defence-focused industrial free zone in Abu Dhabi, a strategic move to localise military manufacturing and attract global industry players. The initiative, named Al Selmiyyah Defence Industrial Free Zone, is a joint project between the Tawazun Council and AD Ports Group.
Quick Facts
- Aims to attract global defence companies.
- Designed to expand domestic production capacity.
- Aligns with the UAE’s ‘Operation 300bn’ strategy.
A Strategic Push for Self-Reliance
The push for a domestic defence hub comes after a recent costly conflict with Iran, which prompted Gulf states to reassess their supply chains and overall defence readiness. The conflict highlighted the heavy financial burden of relying on imported systems.
According to official figures, the UAE engaged 549 ballistic missiles, 29 cruise missiles, and 2,260 unmanned aerial vehicles. Intercepting just the ballistic missiles could have cost nearly $5 billion, based on estimates that a single Patriot interceptor shot costs between $4 million and $5 million, with two typically fired per incoming threat. This experience has reinforced the UAE’s interest in building strategic autonomy, according to Kristian Patrick Alexander, a senior fellow at the Rabdan Security and Defence Institute.
Building a Defence Hub
Under the new partnership, the responsibilities for developing the free zone are clearly divided. Tawazun Council will manage the regulatory framework, including licensing and compliance for defence companies. AD Ports Group will be responsible for the master planning, infrastructure development, and land use for the new zone.
While investment figures and a timeline for the project’s completion have not been disclosed, the goal is to create an integrated ecosystem that reduces the nation’s reliance on military imports.
Anchoring ‘Operation 300bn’
The Al Selmiyyah free zone is a key component of the UAE’s broader national industrial strategy, known as Operation 300bn. This ambitious plan aims to more than double the industrial sector’s contribution to the country’s GDP to AED 300 billion by 2031. By fostering a local defence manufacturing sector, the initiative directly supports this long-term economic diversification goal.
About Al Selmiyyah Defence Industrial Free Zone
The Al Selmiyyah Defence Industrial Free Zone is a new development in Abu Dhabi led by the Tawazun Council and AD Ports Group. It is designed to create a dedicated hub for local and international defence companies, aiming to boost the UAE’s domestic military manufacturing capabilities and reduce its dependence on foreign supply chains.
Source: AGBI
