In a time defined by global disruptions, rising geopolitical tensions, and rapid technological change, manufacturers are increasingly challenged to reconsider where they manufacture. The traditional model of centralized, low-cost manufacturing, often anchored in Asia, is giving way to more diversified, resilient strategies.

In line with this development, the United Arab Emirates (UAE) have embarked on a comprehensive strategy to position itself as a global hub for advanced manufacturing.

Operation 300bn

Central to this vision is the Operation 300bn, which aims to increase the industrial sector’s contribution to the UAE’s GDP from AED 133 billion to AED 300 billion by 2031 (USD 82 billion). To this end, the Emirates Development Bank allocated funds of AED 30 billion (USD 8.2 billion) to support priority industrial sectors such as food & beverage, agricultural technology, pharmaceuticals, electrical equipment & electronics, petrochemicals & chemical products, rubber & plastics, machinery, hydrogen, medical, and space technology. The program incentivizes manufacturers to invest in the UAE through, inter alia, the following stimuli:

  • Up to 80% capital expenditures financing (CapEx), up to 70% green field and brown field project financing, up to 90% advanced technology adaption financing, up to 100% renewables and energy efficiency financing, and up to 70% digitalization financing,
  • 2-years grace period and low interest-rate loans for CapEx, working capital, and supply chain financing,
  • Export credit and insurance via Etihad Credit Insurance and AD Exports, and
  • Customs exemptions for raw materials.

Make it in the Emirates

Complementing the Operation 300bn initiative, the “Make it in the Emirates” campaign seeks to attract investors, innovators, and entrepreneurs to establish manufacturing operations within the UAE. In addition to a wide array of services supporting investors in setting up and operating their manufacturing plants in the UAE, the campaign comprises a yearly event for investors and manufacturers offering access to procurement opportunities and providing support to navigate through the available resources and incentives. During this year’s event, the Ministry of Industry and Advanced Technology signed an agreement with national banks to provide over AED 40 billion (USD 10.9 billion) in competitive financing over five years to support small, medium, and emerging enterprises. Moreover, Abu Dhabi Investment Office took this opportunity to announce the establishment of the region’s most advanced automotive ecosystem, with the aim to attract AED 8 billion (USD 2.2 billion) of foreign direct investment in the full automotive value chain. Next year’s event will take place on 4-7 May 2026 in Abu Dhabi and is open to the public upon registration.

Local incentives

In addition to the incentives at the federal level, many of the individual Emirates introduced complementary measures to attract manufacturing companies. By way of an example, Abu Dhabi’s Land Incentives Program supports investors through preferential land lease options with rates starting from AED 5 (USD 1.4) per square meter. The Emirate also helps the manufacturing sector in implementing the industry 4.0 solutions within the framework of the Smart Manufacturing Program, offering financial assistance to small and medium enterprises in the total value of AED 500 million (USD 136 million). Additionally, the Emirate’s Energy Support Program incentivizes investors through reduced electricity and gas tariffs.

Conclusion

The above-described incentives demonstrate the UAE’s long-term commitment to becoming a competitive destination for foreign manufacturing investments. These policies in combination with the UAE’s advantageous geographical location and excellent infrastructure, make the UAE a unique destination for manufacturers seeking growth and long-term stability.

We are happy to assist, if you consider relocating your production to the UAE.