Operation 300bn Framework
Launched in March 2021, Operation 300bn (also designated Make it in the Emirates) constitutes the UAE’s most comprehensive industrial strategy to date. The initiative targets increasing the industrial sector’s contribution to GDP from approximately AED 133 billion in 2021 to AED 300 billion by 2031, effectively more than doubling manufacturing output within a decade. The strategy identifies priority subsectors, establishes investment attraction mechanisms, and builds institutional support infrastructure to accelerate industrialisation.
The Ministry of Industry and Advanced Technology (MoIAT) serves as the programme’s coordinating body, working alongside emirate-level development authorities, industrial zone operators, and sovereign wealth fund investment arms.
Progress Against Targets
| Indicator | 2021 Baseline | 2023 | 2025 Est. | 2031 Target |
|---|---|---|---|---|
| Industrial GDP (AED bn) | 133 | 168 | 197 | 300 |
| Number of industrial facilities | 8,340 | 9,780 | 11,200 | 15,000 |
| Industrial exports (AED bn) | 64 | 82 | 98 | 160 |
| Industrial employment (thousands) | 487 | 538 | 592 | 750 |
| Industrial FDI (AED bn, annual) | 6.2 | 9.4 | 12.1 | 18.0 |
| In-Country Value (ICV) certified companies | 2,100 | 4,800 | 7,400 | 12,000 |
As of early 2026, industrial GDP has reached approximately 66% of the 2031 target, broadly on track for a linear trajectory but requiring acceleration in the second half of the decade. The In-Country Value programme, which incentivises government procurement from domestically producing firms, has been a particularly effective demand-pull mechanism.
Priority Subsectors
Operation 300bn identifies priority manufacturing subsectors based on competitive advantage, import substitution potential, and value chain positioning.
| Subsector | Current Output (AED bn) | Growth Priority | Strategic Rationale |
|---|---|---|---|
| Metals & Aluminium | 32.4 | Maintain & Upgrade | Existing competitive base (EGA) |
| Food & Beverages | 28.1 | High Growth | Food security, import substitution |
| Petrochemicals & Plastics | 24.6 | Moderate Growth | Feedstock advantage |
| Pharmaceuticals & Medical Devices | 8.7 | Rapid Expansion | Health security, high value-add |
| Aerospace & Defence | 6.4 | Strategic Growth | Tawazun Economic Council mandate |
| Advanced Electronics | 4.2 | Rapid Expansion | Digital economy supply chain |
| Clean Energy Equipment | 3.8 | Rapid Expansion | Net Zero 2050 alignment |
| Machinery & Equipment | 12.3 | Moderate Growth | Industrial deepening |
The pharmaceuticals subsector has attracted significant policy attention. The UAE aims to produce 40% of its pharmaceutical needs domestically by 2031, up from approximately 18% in 2024. Investments by Julphar, ALHOKAIR, and international firms establishing regional manufacturing in Abu Dhabi’s KIZAD industrial zone are contributing to capacity expansion.
Enabling Infrastructure
The UAE’s industrial zone ecosystem provides the physical platform for manufacturing expansion. KIZAD (Abu Dhabi), Dubai Industrial City, Sharjah’s SAIF Zone industrial facilities, and Ras Al Khaimah’s industrial areas offer purpose-built infrastructure including utilities, logistics connectivity, and housing for industrial workforces.
Energy costs, a critical input for manufacturing competitiveness, benefit from subsidised natural gas supplies for heavy industry and expanding solar power availability. The UAE’s clean energy transition, with solar tariffs among the lowest globally, provides a long-term cost advantage for energy-intensive manufacturing processes.
Technology and Industry 4.0 Adoption
MoIAT’s Industry 4.0 programme provides assessment tools and technology adoption support for manufacturers transitioning to smart factory operations. The programme has assessed over 1,200 facilities and identified technology deployment opportunities across robotics, IoT-enabled quality control, predictive maintenance, and digital twin applications.
| Industry 4.0 Metric | 2023 | 2025 Est. |
|---|---|---|
| Facilities assessed | 640 | 1,240 |
| Facilities implementing 4IR technologies | 312 | 680 |
| Average productivity gain from 4IR adoption (%) | 12.4 | 15.8 |
| Investment in 4IR technologies (AED mn) | 1,840 | 3,200 |
Competitive Challenges
The UAE’s industrial ambitions face headwinds from several directions. Labour costs exceed those in competing manufacturing destinations across South and Southeast Asia. Water and raw material inputs require importation for many manufacturing processes, adding to production costs. The relatively small domestic market limits economies of scale for some product categories, making export competitiveness essential.
Regional competition is intensifying. Saudi Arabia’s manufacturing investment under Vision 2030, supported by larger domestic demand and energy cost advantages, presents a competitive challenge in several overlapping subsectors.
Outlook
Operation 300bn has established credible momentum, and the institutional architecture supporting industrial development is mature. Achieving the AED 300 billion target by 2031 is feasible but will require acceleration in pharmaceutical, advanced electronics, and clean energy equipment subsectors. The integration of In-Country Value procurement mandates with industrial investment incentives provides a demand-side complement to supply-side capacity building that distinguishes the UAE’s industrial strategy from purely incentive-driven approaches.