The United Arab Emirates has announced a substantial $11 billion financing initiative aimed at invigorating its industrial sector over the next five years. This move is part of a broader strategy to diversify the nation's economy and reduce its reliance on oil revenues.
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, detailed the plan during the "Make it in the Emirates" forum in Abu Dhabi. He emphasized that the funding would support a range of industries, including food production, construction, renewable energy, and artificial intelligence. "Investing in manufacturing is an investment in an advanced economy," Al Jaber stated, highlighting the government's commitment to fostering industrial growth.
The financing will be facilitated through a collaboration between the government and several major financial institutions. Participating banks include Emirates Development Bank, First Abu Dhabi Bank, Mashreq, Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Wio Bank. This consortium aims to provide accessible funding options to both established companies and emerging enterprises within the targeted sectors.
In addition to the broader financing initiative, the UAE is launching the Emirates Growth Fund, a Dh1 billion investment platform under the Emirates Development Bank. This fund is specifically designed to support small and medium-sized enterprises , offering them the necessary capital to scale operations and enhance competitiveness.
The "Make it in the Emirates" initiative, introduced in 2021, serves as a cornerstone of the UAE's industrial strategy. It aims to increase the industrial sector's contribution to the country's GDP from Dh133 billion to Dh300 billion by 2031. By providing financial support and fostering innovation, the initiative seeks to position the UAE as a global hub for advanced manufacturing and technology.
This comprehensive approach reflects the UAE's broader economic vision, which includes significant investments in infrastructure, technology, and human capital development. By channeling substantial resources into the industrial sector, the government aims to create a more resilient and diversified economy capable of withstanding global economic fluctuations.
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