Manufacturers are reassessing production strategies and supply-chain networks as geopolitical tensions prompt companies to prioritise resilience and regional proximity over low-cost sourcing. The UAE is positioning itself as a key industrial hub amid this shift, with markets such as India and Turkey becoming increasingly important due to their strategic location and growing demand.
A recently launched white paper by the UAE’s investment ministry highlighted the role of foreign direct investment in advancing the country’s industrial ambitions. Over the past decade, industrial projects have attracted nearly USD33B in commitments and supported around 39,000 jobs, with the US, UK and India emerging as the largest contributors.
Rising global uncertainty has led investors to adopt a more cautious approach, focusing less on short-term returns and more on operational stability, execution certainty and long-term resilience. This shift is supporting the UAE’s broader strategy to expand manufacturing’s contribution to GDP under the Operation 300bn initiative.
The government has introduced a AED1B industrial resilience fund while accelerating plans to localise more than 5,000 essential products to reduce dependence on imports. Rather than competing on volume manufacturing, the UAE is targeting advanced, high-value industries where its infrastructure, connectivity and regulatory environment provide a competitive edge.
Major industrial projects are reinforcing this strategy. In petrochemicals, the expansion of the Borouge 4 complex in Al Ruwais is expected to create the world’s largest single-site polyolefin production facility. In aerospace, long-term engine agreements are helping deepen local manufacturing capabilities, while automotive companies are expanding electric-vehicle production facilities in Ras Al Khaimah aimed at export markets.
India is emerging as a priority market for the UAE due to its scale, proximity and rising demand across sectors including chemicals, food products, construction materials and machinery. Indonesia, Turkey and the wider Greater Arab Free Trade Area are also gaining importance as strategic trade and manufacturing corridors.
