Image Credit: Snaptheframe / Shutterstock
UAE Starts $272M Fund to Boost Local Industry and Supply Chains
The UAE has started a new national fund worth $272.3 million (AED 1 billion). The main goal is to grow local industries, make supply chains stronger, and help the country depend less on imports.
National Fund
This plan was announced on Sunday by Sheikh Mohammed bin Rashid Al Maktoum. It is part of a bigger strategy to produce more important goods inside the country. The UAE plans to localise the production of over 5,000 essential products.
Sheikh Mohammed said the fund will help make the country stronger by increasing local production and protecting supply chains. He also said it will support the use of artificial intelligence (AI) in factories and operations.
The fund will focus on key industries that are important for the country. These include food production, basic manufacturing, metals, machinery, electrical and chemical industries, medicines, medical supplies, advanced technology, and construction materials.
The main aim of this fund is to make sure the UAE is ready to produce important goods when needed. It also wants to make sure there are no shortages in supply. This will improve the country’s economic security and stability.
Another important goal is to increase the use of AI. AI will help companies predict demand, manage risks, and improve production. The fund will also support the growth of local factories, build strategic reserves, and strengthen supply chains across different industries.
Shaoor Turabee, a senior research analyst at Vision Capital, said this fund will help local producers. Government spending will now focus more on buying from local companies. This means industries like metals, pharmaceuticals, and food processing will benefit the most.
He also said that future company reports will show how much these industries are growing and benefiting from the fund.
Operation 300bn
This new fund is part of the UAE’s larger industrial plan. One key program is “Operation 300bn.” This program was launched a few years ago to increase the role of manufacturing in the economy.
The goal of Operation 300bn is to grow the industrial sector and improve advanced manufacturing. It also aims to make the UAE a global hub for industry and innovation.
In recent years, the UAE has worked hard to produce more goods locally. The country wants to reduce its dependence on imports, especially in important sectors like food, medicines, and industrial technology. This is part of a wider plan to diversify the economy and reduce reliance on oil.
ICV Program Changes
Along with the fund, the UAE Cabinet has approved changes to the National In-Country Value (ICV) Programme. This program encourages companies to use local products and services.
Under the new rules, some sectors will be required to meet local content targets. These rules will apply to government departments and companies where the government owns at least 25%.
This decision means that government spending will support local industries more directly. It will help ensure stable supply chains, improve readiness for demand, and support self-sufficiency.
The ICV program has already been growing in recent years. It encourages companies to source materials locally and supports domestic manufacturing. It also ensures that more government spending stays within the UAE economy.
Growth in Industrial Opportunities
According to the Ministry of Industry and Advanced Technology, the “Make it in the Emirates” initiative has shown strong growth. In 2024, industrial procurement opportunities reached $45.8 billion (AED 168 billion). This is a big increase from $38.9 billion (AED 143 billion) in the previous year.
The program now includes around 4,800 products that can be made locally. This shows the UAE’s strong push to increase domestic production.
Supporting Local Products
The Cabinet has also approved a new plan to promote UAE-made products in shops and online platforms. The goal is to make these products more visible and easier for people to buy.
This plan will help increase awareness among consumers and support local businesses. It will also help integrate UAE-made goods into major supply chains and improve market stability.
In the first phase, the focus will be on essential products that can be produced in large amounts. These include bottled water, dairy products, eggs, poultry, bread, flour, vegetable oils, and seasonal vegetables.
The plan will involve partnerships with private companies, retailers, and digital platforms. Stores will have special shelf space for UAE-made products that meet certain quality standards.
Conclusion
The UAE’s new $272 million fund is an important step towards building a stronger and more self-reliant economy. By supporting local industries, improving supply chains, and increasing the use of technology, the country aims to reduce its dependence on imports.
Programs like Operation 300bn and the ICV initiative show the UAE’s long-term commitment to industrial growth. These efforts will not only strengthen the economy but also create more jobs and opportunities for businesses.
By focusing on local production and innovation, the UAE is preparing for a more stable and sustainable future.
Also Read:-
Sajwanis Lead 2026’s Wealthiest Arab Families List
Arab real estate moguls behind $28.8B fortune
Saudi Arabia’s PIF Eyes $5B Stake in SpaceX IPO
