Abu Dhabi Industrial Strategy Spurs 23% Growth in Manufacturing Sector

Abu Dhabi: The Abu Dhabi Industrial Strategy (ADIS) is driving substantial growth in the manufacturing sector and enhancing economic diversification within the emirate. Since its launch in June 2022, the industrial GDP in Abu Dhabi has surged by 23 percent, increasing from AED90.8 billion in 2022 to AED111.6 billion in 2024. The number of industrial enterprises has also risen by 19.4 percent, from 925 to 1,104, according to Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED).

According to Emirates News Agency, Al Zaabi, speaking at a panel discussion during the opening day of the 4th session of 'Make it in the Emirates', emphasized the UAE and Abu Dhabi's initiatives and programs aimed at creating an investment-friendly environment to accelerate industrial growth and ensure long-term economic resilience. He noted that the UAE's industrial strategy has set up robust frameworks to invigorate the sector, focusing on resilience and adaptability to emerging trends and challenges through initiatives such as talent development, financing, ease of doing business, and the attraction of foreign direct investments.

Al Zaabi also highlighted the collaboration with the Ministry of Industry and Advanced Technology (MoIAT) to support 'Operation 300bn', which aims to elevate the industrial sector's GDP to AED300 billion by 2031 and align with the UAE's Net Zero 2050 Strategy. Abu Dhabi's manufacturing sector has increased its contribution to 53 percent of the UAE's industrial GDP, which grew by 6.6 percent to AED210 billion in 2024, compared to 51.3 percent contribution in 2023 and 46 percent in 2022.

The ADIS is a critical component of Abu Dhabi's 'Falcon Economy', strengthening its position as the region's most competitive industrial hub. It guides the sector's transition to Industry 4.0, promoting the adoption of smart manufacturing methods. In 2024, Abu Dhabi's manufacturing sector was the largest non-oil contributor to the emirate's GDP, accounting for 9.5 percent of the total GDP and 17.3 percent of the non-oil GDP.

In the first quarter of 2025, the industrial sector maintained its growth trajectory, with new industrial licenses increasing by 4.7 percent to 89, compared to 85 in the same period the previous year. The number of licenses transitioning from under-construction to production surged by 65 percent to 33, up from 20 in Q1-2024.

Abu Dhabi's Falcon Economy is on a rapid ascent as a global center for advanced industries and technologies, building world-class hubs for finance, advanced manufacturing, AI, and New Energy. The emirate is launching sector-specific clusters, such as Smart and Autonomous Vehicles Industries (SAVI), AgriFood Growth and Water Abundance (AGWA), and Health, Endurance, Longevity, and Medicine (HELM), to leverage advanced technologies in addressing current needs and future-proofing the economy.