The UAE has unveiled a AED1 billion ($272.3 million) national fund aimed at accelerating the localization of critical industries, strengthening domestic supply chains, and advancing the country’s industrial self-sufficiency.
The initiative, announced by Sheikh Mohammed bin Rashid Al Maktoum, forms part of a broader national strategy to localize the production of more than 5,000 essential products.
“We are launching an AED 1 billion fund to strengthen resilience, expand local production, secure supply chains, and scale the use of artificial intelligence across production and operations,” Sheikh Mohammed stated.
Targeting Strategic Sectors
The fund will focus on industries aligned with national priorities, including food security and essential manufacturing. Key sectors include primary metals, mechanical, electrical and chemical industries, pharmaceuticals and active pharmaceutical ingredients (APIs), medical supplies, advanced technology, and construction materials.
Beyond funding, the initiative aims to enhance industrial readiness for critical goods, ensure supply continuity, and reinforce economic security. It will also promote the adoption of artificial intelligence in forecasting and risk management, while supporting the growth of local manufacturing capabilities and strategic reserves.
According to Shaoor Turabee, Senior Research Analyst at Vision Capital, the fund—combined with expanded In-Country Value (ICV) requirements—will channel government spending directly toward local producers.
“Listed manufacturers in primary metals, pharmaceuticals, and food processing are likely to benefit most, driven by increased government procurement and access to capital,” Turabee noted, adding that upcoming earnings reports will provide key insights into order book growth.
Building on ‘Operation 300bn’
The new fund builds on the UAE’s long-term industrial strategy, including the Operation 300bn initiative, which aims to significantly increase the manufacturing sector’s contribution to GDP and strengthen advanced industrial capabilities.
In recent years, the UAE has intensified efforts to localize supply chains and reduce reliance on imports, particularly in sectors such as food production, pharmaceuticals, and industrial technology—key pillars of its broader economic diversification agenda.
ICV Programme Expansion
In parallel, the UAE Cabinet has approved amendments to the National In-Country Value (ICV) Programme, making local content requirements mandatory across selected sectors. The policy will now extend to federal entities and companies in which the government holds at least a 25% stake.
The move is designed to direct government and institutional demand toward priority national products, strengthen supply chain resilience, and enhance industrial self-sufficiency.
The ICV programme has expanded significantly in recent years, encouraging local sourcing and boosting domestic manufacturing. Under the Make it in the Emirates initiative, industrial procurement opportunities reached AED168 billion ($45.8 billion) in 2024, up from AED143 billion the previous year. The programme now covers approximately 4,800 locally manufacturable products.
Promoting UAE-Made Products
Additionally, the Cabinet has approved a new initiative to increase the visibility of UAE-made products across retail and digital platforms. The programme aims to boost consumer awareness, integrate local goods into major supply chains, and support market stability.
The first phase will focus on essential and scalable products, including bottled water, dairy, eggs, poultry, bread, flour, vegetable oils, and seasonal produce. Implementation will involve collaboration with private sector partners, retailers, and e-commerce platforms, with dedicated shelf space allocated for “Made in UAE” products under standardized guidelines.
