The UAE is doubling down on its industrial transformation strategy, approving a comprehensive set of reforms aimed at boosting domestic manufacturing, securing critical supply chains, and curbing its reliance on imports. Central to this new push is a major fund designed to accelerate the localization of thousands of essential goods.
Quick Facts
- AED 1 billion ($272.2M) industrial fund established.
- Goal to localize over 5,000 essential products.
- In-Country Value Program now mandatory for government entities.
From AI to Pharma: Inside the Fund’s Strategy
At a recent Cabinet meeting chaired by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, the government greenlit the AED 1 billion ($272.2 million) National Industrial Resilience Fund. The fund is designed to be a strategic vehicle for improving industrial readiness in sectors vital to the nation’s economy and security.
“Today, we made decisions to accelerate the UAE’s industrial growth. We are launching an AED 1 billion fund to strengthen resilience, expand local production, secure supply chains, and scale the use of artificial intelligence across production and operations,” Sheikh Mohammed stated.
The initiative will support local production capabilities and build strategic reserves across key industries, including food security, pharmaceuticals, advanced technology, medical supplies, and manufacturing. A key component of the fund’s strategy involves integrating AI into industrial forecasting, planning, and risk management to improve efficiency and competitiveness.
A Mandatory Push for ‘Made in the Emirates’
In a major policy revision, the Cabinet also made the National In-Country Value (ICV) Program mandatory for all federal entities and companies with at least 25% government ownership. This transitions the program from an incentive-based model to a required framework, compelling government-linked spending to prioritize locally manufactured products.
“We made the National In-Country Value Program mandatory across all government entities and national companies, and strengthened the presence of UAE-made products. Our target is clear: fully localize more than 5,000 critical products,” Sheikh Mohammed added.
This move is expected to create consistent institutional demand for UAE-made goods, strengthening local supply chains and using public procurement as a direct driver for industrial growth. Further supporting this, a new policy was approved to expand the market presence of Emirati products in both physical retail stores and on digital platforms. The initial phase will focus on consumer staples like bottled water, dairy, poultry, and bread.
Building the Ecosystem with ‘Make it in the Emirates’
These policy changes are being implemented as the UAE gears up for the fifth edition of the Make it in the Emirates forum, scheduled for May in Abu Dhabi. The government also approved the formation of a National Industrial Data Committee to improve data accessibility and integration across federal systems.
Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, commented on the new decisions. “These decisions reflect the leadership’s vision to advance a more resilient and sustainable national industrial model, built on the localization of critical industries, the strengthening of supply chains, and directing demand toward national products.”
About the National Industrial Resilience Fund
The National Industrial Resilience Fund is a UAE government initiative established with AED 1 billion ($272.2 million) to enhance the country’s industrial sector. Its primary objectives are to support the local production of over 5,000 essential products, secure critical supply chains, build strategic reserves, and integrate artificial intelligence into industrial processes to bolster national economic security and reduce import dependency.
Source: Fast Company Middle East
