UAE Launches $272M Fund to Boost Industrial Resilience, Local Manufacturing
The UAE has introduced a 1 billion dirham National Industrial Resilience Fund aiming to enhance local production, secure supply chains, and integrate AI technology across industries.
Riyadh: The United Arab Emirates (UAE) government has established a 1 billion dirham ($272 million) fund named the National Industrial Resilience Fund.
This initiative is designed to bolster domestic manufacturing capabilities, ensure stable supply lines, and foster the use of artificial intelligence (AI) in production processes.
The decision was made during a cabinet meeting presided over by Sheikh Mohammed bin Rashid Al-Maktoum, who holds several key positions including Vice President, Prime Minister of the UAE, and Ruler of Dubai.
This move aligns with the country's broader strategy to reduce its economic dependence on oil revenues through diversification.
The establishment of this fund follows a previous announcement in March by Dubai, approving a 272.2 million dirham package intended to mitigate financial pressures and support businesses and households amid geopolitical tensions involving Iran.
In a statement released after the cabinet meeting, Al-Maktoum emphasized the importance of these measures: "Today, we have taken steps to accelerate the UAE's industrial growth.
The establishment of a 1 billion dirham fund will enable us to enhance resilience, expand local production capabilities, secure critical supply chains, and integrate AI technologies across our industries".
He also announced that the National In-Country Value (ICV) Programme would become mandatory for all government entities and national companies.
ICV aims to increase the contribution of locally made products in the UAE economy.
The fund's objectives include increasing industrial readiness for crucial goods, maintaining supply continuity, enhancing economic security, and leveraging AI for predictive analytics and risk management purposes.
Additionally, it will provide support for local manufacturing expansion, strategic reserve development, and the establishment of value chains in high-priority sectors.
In tandem with these financial measures, the cabinet approved policies aimed at increasing the presence of locally manufactured goods within retail establishments and digital platforms, which is expected to boost consumer awareness and stabilize supply lines.
Sultan bin Ahmed Al-Jaber, who serves as Minister of Industry and Advanced Technology, underscored that these decisions reflect a strategic approach to build a "more resilient and sustainable national industrial model".
He highlighted the importance of strengthening supply chains and encouraging demand for locally produced goods.
Industry experts have welcomed these measures, praising their focus on localization efforts, AI integration, and long-term resilience.
Abdulla Al-Hamed, chairman of the UAE's National Media Authority, described the Industrial Resilience Fund as strategic capital that will drive the localization of critical industries and secure supply chains.
He further noted that AI has become integral to production and planning processes, transforming national factories into globally competitive smart platforms.
This development represents a significant milestone in the UAE’s efforts to establish a more self-reliant economy by enhancing its industrial base and fostering technological innovation.
This initiative is designed to bolster domestic manufacturing capabilities, ensure stable supply lines, and foster the use of artificial intelligence (AI) in production processes.
The decision was made during a cabinet meeting presided over by Sheikh Mohammed bin Rashid Al-Maktoum, who holds several key positions including Vice President, Prime Minister of the UAE, and Ruler of Dubai.
This move aligns with the country's broader strategy to reduce its economic dependence on oil revenues through diversification.
The establishment of this fund follows a previous announcement in March by Dubai, approving a 272.2 million dirham package intended to mitigate financial pressures and support businesses and households amid geopolitical tensions involving Iran.
In a statement released after the cabinet meeting, Al-Maktoum emphasized the importance of these measures: "Today, we have taken steps to accelerate the UAE's industrial growth.
The establishment of a 1 billion dirham fund will enable us to enhance resilience, expand local production capabilities, secure critical supply chains, and integrate AI technologies across our industries".
He also announced that the National In-Country Value (ICV) Programme would become mandatory for all government entities and national companies.
ICV aims to increase the contribution of locally made products in the UAE economy.
The fund's objectives include increasing industrial readiness for crucial goods, maintaining supply continuity, enhancing economic security, and leveraging AI for predictive analytics and risk management purposes.
Additionally, it will provide support for local manufacturing expansion, strategic reserve development, and the establishment of value chains in high-priority sectors.
In tandem with these financial measures, the cabinet approved policies aimed at increasing the presence of locally manufactured goods within retail establishments and digital platforms, which is expected to boost consumer awareness and stabilize supply lines.
Sultan bin Ahmed Al-Jaber, who serves as Minister of Industry and Advanced Technology, underscored that these decisions reflect a strategic approach to build a "more resilient and sustainable national industrial model".
He highlighted the importance of strengthening supply chains and encouraging demand for locally produced goods.
Industry experts have welcomed these measures, praising their focus on localization efforts, AI integration, and long-term resilience.
Abdulla Al-Hamed, chairman of the UAE's National Media Authority, described the Industrial Resilience Fund as strategic capital that will drive the localization of critical industries and secure supply chains.
He further noted that AI has become integral to production and planning processes, transforming national factories into globally competitive smart platforms.
This development represents a significant milestone in the UAE’s efforts to establish a more self-reliant economy by enhancing its industrial base and fostering technological innovation.
