Unlocking Abu Dhabi’s Industrial Potential: A Comprehensive Guide to the ADIS

Abu Dhabi’s manufacturing sector reached AED101 billion in 2023. This achievement represents 8.8 percent of the total GDP and 16.5 percent of non-oil GDP.

ADIS has helped tap into Abu Dhabi’s industrial potential with remarkable results. The strategy’s launch boosted Abu Dhabi’s industrial GDP by 23 percent from AED90.8 billion in 2022 to AED111.6 billion in 2024. The strategy’s bold vision aims to double the manufacturing sector’s size to AED172 billion. It also plans to boost non-oil exports by 148 percent to AED178.8 billion and generate 13,600 jobs by 2031.

The Abu Dhabi government’s steadfast dedication backs this detailed transformation with a AED10 billion investment to achieve these goals. This investment enables sectors of all types to thrive. To cite an instance, domestic and international players can invest in transportation industries that should reach AED11.04 billion ($US3 billion) by 2027.

Abu Dhabi has created a competitive business environment effectively. Business setup and license renewal fees have dropped by over 90 percent. Requirements have decreased by 71 percent. This piece examines how ADIS changes Abu Dhabi’s industrial world and highlights opportunities for investors and businesses eager to join this economic transformation.

Understanding the Abu Dhabi Industrial Strategy (ADIS)

His Highness Sheik Khaled bin Mohamed bin Zayed Al Nahyan launched the Abu Dhabi Industrial Strategy (ADIS) in June 2022. This life-blood initiative strengthens the emirate’s position as the region’s most competitive industrial hub. The strategy provides a detailed roadmap to boost the manufacturing ecosystem and establish Abu Dhabi as a global industrial leader.

What is ADIS and why it matters

ADIS goes beyond a simple economic framework. This transformative blueprint positions Abu Dhabi as the region’s leading industrial hub. The Industrial Development Bureau (IDB) executes key objectives under ADIS. The bureau plans and manages industrial zones, conducts technical studies, and tracks sector performance.

ADIS has shown remarkable results since its launch. New industrial licenses grew by 16.6%, while manufacturers’ total capital investments rose by AED12.42 billion to AED384.06 billion in the year ending June 2023. Abu Dhabi’s industrial sector now contributes 53% of UAE’s industrial GDP, which increased 6.6% to AED210 billion in 2024.

Key goals and 2031 vision

The Abu Dhabi government allocated AED10 billion to six transformational programs with bold targets for 2031. These targets include:

• More than doubling the manufacturing sector from AED83.5 billion to AED172 billion
• Creating 13,600 skilled jobs with a focus on Emirati talent
• Increasing non-oil exports by 143% to AED178.8 billion

These goals support the UAE’s national industrial strategy, Operation 300bn, which plans to raise the industrial sector’s GDP contribution to AED300 billion by 2031.

How ADIS supports economic diversification

ADIS drives economic diversification by focusing on seven key manufacturing sectors: chemicals, machinery, electrical power, electrical equipment, transportation, pharmaceuticals, and agri-foods.

Six transformational programs form the foundations of industrial growth: Industry 4.0, Circular Economy, Talent Development, Ecosystem Enablement, Homegrown Supply Chain, and Value Chain Development. These programs make business easier, provide financial access, build resilient infrastructure, and encourage public-private cooperation.

ADIS reinforces the UAE’s sustainability commitments through several initiatives. A new circular economy regulatory framework and green policies promote responsible production in waste management, parts supply, and manufacturing.

The Six Transformational Programs of ADIS

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The Abu Dhabi government has pledged AED 10 billion to six programs that will alter the map of the emirate’s industrial sector. These programs work together as the foundations of ADIS implementation. Each program tackles a vital aspect of industrial development.

Industry 4.0 and smart manufacturing

Abu Dhabi’s industrial development features the Smart Manufacturing Incentive Program (SMIP) with its AED 500 million fund. The fund helps small and medium-sized enterprises adopt Industry 4.0 technologies. This five-year program will turn 30% of Abu Dhabi’s existing SME manufacturers into smart manufacturing facilities. The Smart Manufacturing Competence Center (SMCC) will start operations in Q1 2024. It will give manufacturers detailed transformation plans and provide training, workshops, and technical advice.

Talent development and upskilling

ADIO collaborates with Rabdan Academy to offer detailed upskilling programs for Emiratis hired in the industrial sector. The life-blood of this initiative is the Industry 4.0 and Sustainability training program, created with EDGE Learning Innovation Factory and TÜV SÜD. This globally accredited program teaches automation, digital systems, and eco-friendly production. It should create 1,000 new jobs for UAE Nationals by 2031.

Circular economy and sustainability

This program optimizes industry-wide sustainability by enabling responsible industrial production and consumption. A strong circular economy framework for waste, recycling, and consumption is under development. The framework will reduce resource extraction, minimize waste, and substantially cut greenhouse gas emissions. This approach opens up economic opportunities—studies show the circular economy could generate USD 4.5 trillion in new economic output.

Ecosystem enablement and infrastructure

The program now uses a digital geographic information system (GIS) to search industrial land and runs a unified inspection program for quality control. Reimbursement incentive programs also boost the ease of doing business in industries of all sizes.

Homegrown supply chain development

This initiative strengthens the industrial sector by increasing self-sufficiency and promoting domestic products. The Abu Dhabi Golden List promotes government procurement of locally manufactured products and continues to grow. This growth strengthens domestic manufacturing capabilities.

Value chain integration and innovation

A supply chain equity investments fund will boost local infrastructure development for end-to-end integration. The Abu Dhabi Channel Partners initiative offers tailored packages to attract foreign direct investment. These efforts cement Abu Dhabi’s role as a global manufacturing hub.

Enablers of Industrial Growth in Abu Dhabi

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Abu Dhabi has put several important building blocks in place to encourage industrial growth throughout the emirate, beyond its six main programs.

Ease of doing business and licensing reforms

The cost to set up or renew a company license in Abu Dhabi is now just AED 1,000 (USD 272.20). New industrial Rowad licenses jumped 16.6% between July 2022 and June 2023. The Electronic Single Window (eSW) project has made life easier for traders by creating a one-stop service system that speeds up clearance and eliminates paperwork.

Access to finance and investment incentives

Abu Dhabi’s Business Financing Facilitation Platform now makes it easier for manufacturers to get funding. The platform links industrial investors with financial partners, including Abu Dhabi Securities Exchange, Abu Dhabi IPO Fund, and 14 major banks. These programs help industrial companies take advantage of opportunities in Abu Dhabi’s business-friendly environment.

Land, energy, and utility support programs

The Energy Support Program (ESP) helps businesses stay competitive with special rates for gas and electricity. The Land Rebate Incentive Program (LRIP) attracts companies through affordable lease rates and long-term contracts with incentives. Companies in the industrial sector also save 5% through customs exemptions on industrial imports like machinery and raw materials.

Role of the Industrial Development Bureau (IDB)

The IDB, a 10-year-old organization, helps Abu Dhabi’s industrial sector grow by building partnerships and supporting development. The bureau launched its Smart Manufacturing project in October 2021 to help companies adopt new manufacturing technologies.

Tracking Progress and Future Outlook

Progress tracking of the Abu Dhabi Industrial Strategy shows impressive gains across several key metrics.

Key performance indicators and milestones

Abu Dhabi’s industrial GDP has grown by 23% from AED90.8 billion to AED111.6 billion since ADIS launched in June 2022. The number of industrial enterprises grew by 19.4% from 925 to 1,104. Abu Dhabi’s manufacturing sector now holds a stronger position and contributes 53% to UAE’s industrial GDP in 2024, up from 46% in 2022. This upward trend continues as new industrial licenses increased 4.7% year-on-year in Q1-2025.

Sector-specific growth: transportation, chemicals, and more

The chemicals sector shows great promise, particularly in transportation applications. Automotive refinishing stands out as a major market for chemical coatings. The paint and coatings industry hired 312,000 workers in 2023, creating 43,900 new jobs since 2013. The United States maintains robust export performance with USD 2.80 billion in paint and coating products in 2024.

Global positioning and competitiveness goals

Abu Dhabi strengthens its global industrial position through specialized clusters like Smart and Autonomous Vehicles Industries (SAVI) and AgriFood Growth & Water Abundance (AGWA). ADIS leads the manufacturing sector’s shift to Industry 4.0 and smart manufacturing methods, which boosts Abu Dhabi’s competitive edge.

Abu Dhabi’s industrial scene is going through a remarkable change. The Abu Dhabi Industrial Strategy has delivered outstanding results with a 23% growth in industrial GDP since its launch. This complete blueprint makes the manufacturing ecosystem stronger and establishes Abu Dhabi as the region’s leading industrial hub.

The six transformational programs have shown great progress. Smart Manufacturing will reshape production processes, while talent development programs help Emiratis lead industrial innovation. On top of that, circular economy projects line up with sustainability goals and create economic opportunities that reduce environmental impact.

Business reforms have improved Abu Dhabi’s appeal to investors. The licensing process needs fewer steps now. Costs have dropped sharply, and financing options have grown through strategic collaborations with financial institutions. Local and international investors can join this economic transformation more easily.

The future looks bright. Target sectors like chemicals, transportation, and pharmaceuticals show huge growth potential. Abu Dhabi’s focus on Industry 4.0 technologies builds a strong base to compete in global markets.

Abu Dhabi serves as a blueprint for successful industrial development. The emirate continues its path toward becoming a global manufacturing powerhouse through careful planning, major investment, and clear vision. Companies and investors who participate in this dynamic ecosystem will lead industrial innovation for decades.