UAE leads Arab region and ranks among global top 30 in UN industrial performance index

Emirates moves up two spots annually, reflecting its 'qualitative leaps in industrial development', says Dr Sultan Al Jaber

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Cop28 President-designate, says the Unido ranking highlights the UAE's industrial trajectory. Khushnum Bhandari / The National

The UAE has been ranked first in the Arab region and 29th globally in the Competitive Industrial Performance Index released by the UN Industrial Development Organisation, as the country continues to boost its status as an industrial and manufacturing hub.

The Emirates has climbed up two spots from last year’s index.

The CIP, which ranks 153 countries, assesses national industrial performance in the global economy, benchmarking the ability of nations to produce and export competitively.

It is based on indicators including technological capabilities, innovation, productivity and trade performance.

“The country has made qualitative leaps in industrial development and has been able to strengthen its strategic position as it moves towards achieving its industrial goals through a set of competitive advantages that enhance its position as a global hub for manufacturing and innovation,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Cop28 President-designate.

“The recent Unido ranking confirms the UAE’s leadership in industry and advanced technology and highlights the country’s industrial trajectory.

“It also reflects MoIAT’s commitment to stimulating sustainable industrial growth and enhancing investment attractiveness as well as regional and international competitiveness through deploying advanced technologies and solutions of the Fourth Industrial Revolution.”

The UAE in 2021 launched Operation 300bn, an overarching strategy to position the country as an industrial hub by 2031.

The 10-year plan focuses on increasing the industrial sector's contribution to the country's gross domestic product to Dh300 billion ($81.68 billion) in 2031, from Dh133 billion in 2021.

The strategy focuses on boosting production in 11 priority sectors, supporting the growth of national industries, attracting foreign investment and ensuring availability of dedicated financing for local industrial companies.

The MoIAT, set up in 2020, is spearheading the implementation of the strategy through policies and initiatives such as Make it in the Emirates, the national in country value programme and the technology transformation programme.

The programmes have contributed to enhancing the enablers and incentives offered by the industrial sector to local and international investors, the ministry said in a statement on Monday.

They have also boosted the skills of Emiratis, enhanced supply chain resilience, and motivated national and international companies to enter partnerships to manufacture products in the UAE, it said.

The programmes helped the industrial sector contribute Dh180 billion to the UAE's GDP last year.

They have also “significantly boosted” the UAE’s non-oil industrial exports, estimated to have reached more than Dh170 billion in 2022, the ministry said.

The ICV programme redirected Dh53 billion into the economy in last year, a 25 per cent annual increase, while helping to provide jobs for almost 2,000 Emiratis.

Meanwhile, the TTP initiative aims to boost exports of technological products by around Dh15 billion a year, according to the ministry.

The programme seeks to add Dh110 billion to GDP annually and drive Dh11 billion in technology investments.

“By automating the industrial sector, the programme will also help to increase industrial productivity by Dh15 billion annually,” the ministry said.

In the latest Unido index, the UAE climbed to 115 from 124 in the industrial export quality index, to 95 from 98 in share of manufacturing value added in GDP, 97 from 110 in share of manufacturing exports in total exports and 14 from 17 in the manufacturing export per capita indices.

“The Unido ranking builds on significant strides made by the UAE across several global competitiveness reports,” Hanan Ahli, managing director of the Federal Competitiveness and Statistics Centre, said.

“It reflects the government’s commitment to strengthening the UAE’s position as one of the most advanced nations, and recognises the ministry’s efforts – as well as those of its strategic partners – to drive sustainable development.”

The UAE currently holds the top ranking in 152 competitiveness indices globally and is among the top 10 in 425 competitive indices, based on the centre’s analysis of 1,502 indices published by the UN and other international organisations, Ms Ahli said.

The industrial sector is also set to play a key role in helping the UAE reduce carbon emissions by 40 per cent by 2030, Dr Al Jaber said.

The government announced the revised cut last week, compared with an earlier plan for a 31 per cent reduction.

It will seek reductions from industry, agriculture, and in power grid generation and transport.

“The industrial sector is critical to achieving these sustainability goals,” Dr Al Jaber said.

“We remain committed to enhancing the competitiveness of the national industrial sector, as well as its attractiveness to investors, through focusing on expanding the use of advanced technology, entrepreneurship, and investing in sustainable future industries in line with our net zero by 2050 commitment.”