UAE targets sharp rise in industrial sector

The UAE has set a target to sharply lift the industrial sector to contribute a quarter of the domestic economy in the next 15 years, an official at the Ministry of Economy said in remarks published on Monday.

The non-oil industrial sector accounted for around 16.2 per cent of the gross domestic product in 2009 and there are plans to expand it to 25 per cent by 2025, said Mohammed Al Shihi, the Ministry of Economy Director.

“The Ministry is working towards that goal through its policy of economic diversification and lessening of reliance on oil,” he told local newspapers.

“As part of this plan, we have conducted studies about the sectors to be targeted for investment…they include petrochemicals, auto spare parts, ship building, aviation and energy-based industries.”

Shihi, who was commenting on this week’s Abu Dhabi Investment seminar held in London, said the UAE can achieve that objective given its attractive laws and infrastructure for investment. He noted that the UAE had lured in around $74 billion in foreign director investment over the past two decades to maintain its position as one of the largest FDI destinations in the region.

The manufacturing sector is at present the second largest component of the UAE’s GDP after oil as it has recorded high growth over the past 20 years because of massive investments. Official data put total capital in the country’s industrial sector at over Dh80 billion.