The industrial sector in the UAE has experienced a notable increase in financing, bolstered by strong support from both government and private entities. This collaborative effort is essential for driving industrial growth and achieving the ambitious goals set forth in the “Operation 300 Billion” initiative. The financial support is crucial, as a well-funded industrial sector is key to establishing a diversified and resilient national economy characterized by sustainability, innovation, and long-term prosperity.

According to data from the Central Bank of the UAE (CBUAE), banks operating in the UAE provided AED5.537 billion in funding for the manufacturing sector during the first nine months of 2024. This funding has raised the total loans to the sector to a historic high of over AED94.85 billion. The financing portfolio for the industrial sector increased by approximately 6.2% during this period, compared to AED89.315 billion at the end of 2023. Over the past decade, the sector has seen a growth rate of over 37%, compared to the end of 2015.

Key institutions like the Emirates Development Bank (EDB), the Khalifa Fund for Enterprise Development (KFED), and the Mohammed Bin Rashid Establishment for SME Development are instrumental in supporting industrial projects, particularly those focusing on innovation and technology. These organizations offer various accessible financing solutions and training programs aimed at empowering entrepreneurs and enhancing the competitiveness of small and medium-sized enterprises (SMEs). This support enables SMEs to become vital contributors to the expanding industrial landscape in the UAE.

The EDB adopts a comprehensive strategy to stimulate and develop local factories, offering a wide range of solutions and products. The bank’s vision aligns with the national strategy for advanced industry and technology, which aims to position the UAE as a global industrial hub by 2031 through the implementation of the Operation 300 Billion Initiative. Meanwhile, the KFED plays a crucial role in financing and developing SMEs, focusing on supporting local entrepreneurs and fostering industrial innovation through diverse financing options and specialized training programs.

The Mohammed Bin Rashid Establishment for SME Development acts as a key platform for promoting entrepreneurship in the UAE. It offers flexible financing programs and expert consulting services to enhance the competitiveness of various projects. In remarks to the Emirates News Agency (WAM), Jamal Saleh, Director General of the UAE Banks Federation, emphasized the UBF’s commitment to supporting the industrial sector to foster economic growth and diversification, in alignment with the UAE’s Industrial Strategy: Operation 300 Billion Initiative.

Saleh further noted that under the guidance of the CBUAE, the banking sector plays a vital role in financing the industrial sector. This includes innovating suitable solutions to keep pace with developments, transition to the Fourth Industrial Revolution (4IR), and promote sustainability and the circular economy. He highlighted that the industrial sector contributed more than 11% to the UAE’s gross domestic product in 2023 and continues to present significant growth opportunities within the favorable frameworks established by the Ministry of Industry and Advanced Technology.