Abu Dhabi to Pump $2.7Bln in Industrial Sector

Abu Dhabi Industrial Strategy was announced during an event attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office. (WAM)
Abu Dhabi Industrial Strategy was announced during an event attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office. (WAM)
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Abu Dhabi to Pump $2.7Bln in Industrial Sector

Abu Dhabi Industrial Strategy was announced during an event attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office. (WAM)
Abu Dhabi Industrial Strategy was announced during an event attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office. (WAM)

The UAE capital, Abu Dhabi, launched its Industrial Strategy on Thursday.

The government will invest through this strategy AED10 billion ($2.7 billion) across six transformational programs to more than double the size of Abu Dhabi’s manufacturing sector to AED172 billion by 2031 by increasing access to financing, enhancing ease of doing business, and attracting foreign direct investment.

According to the information obtained, the strategy will also create 13,600 skilled jobs, with a focus on Emirati talent, and boost Abu Dhabi’s trade with international markets, targeting to increase Abu Dhabi’s non-oil exports by 143% to AED178.8 billion by 2031.

Multiple initiatives, including a new circular economy regulatory framework, as well as new green policies and incentives, will help continue Abu Dhabi’s transition towards a smart, circular economy, powered by an industrial sector that champions responsible production and consumption across waste management, parts supply, and smart manufacturing.

Mohammed Ali al-Shorafa, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said “Abu Dhabi’s blueprint for a comprehensive industrial strategy is an ambitious vision that will guide the future of the emirate’s manufacturing sector and shape a resilient and diversified economy for decades to come.”

In line with the UAE’s industrial strategy, the roadmap will create the ideal environment for businesses to emerge and grow.

He affirmed that the strategy addresses Abu Dhabi’s ever-growing productivity goals, helps secure future investor opportunities, safeguards its human capital and boosts job creation, and enables it to pre-empt evolving market conditions and shifting trends.

While enhancing sustainability across the ecosystem in line with the UAE Net Zero by 2050 and the National Climate Change Strategy, the manufacturing industry’s ongoing evolution will be accelerated by the integration of advanced Industry 4.0 technologies to spur growth, competitiveness and innovation.

The strategy’s initiatives will also advance the emirate’s development into a global hub for future industries, with a focus on seven targeted manufacturing sectors, namely chemicals, machinery, electrical power, electrical equipment, transportation, agri-foods, and pharmaceuticals.

It includes six transformational programs that will drive growth and innovation, boost skills, strengthen the ecosystem for local manufacturers, ease access to global markets, and advance the transition to a circular economy.

The circular economy program will drive industry-wide sustainability by enabling responsible industrial production and consumption.

A robust circular economy regulatory framework for waste, recycling, and consumption will be developed and implemented.

The Industry 4.0 program will accelerate business growth through the widespread adoption of new technologies and processes to spur competitiveness and innovation.

Meanwhile, the ecosystem enablers include a digital geographic information system (GIS) mapping for industrial land search and a unified inspection program for quality control.

Further enhancements to ease of doing business is also a key focus, through reimbursement incentive programs for government fees.

In addition, the homegrown supply chain program will build industrial sector resilience by increasing self-sufficiency and promoting domestic products.

To drive local infrastructure development for end-to-end integration, a supply chain equity investments fund will be established.



UN Predicts World Economic Growth to Remain at 2.8% in 2025

A vegetable vendor sits beside a bonfire on his handcart on a cold winter evening in New Delhi on January 6, 2025. (Photo by Sajjad HUSSAIN / AFP)
A vegetable vendor sits beside a bonfire on his handcart on a cold winter evening in New Delhi on January 6, 2025. (Photo by Sajjad HUSSAIN / AFP)
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UN Predicts World Economic Growth to Remain at 2.8% in 2025

A vegetable vendor sits beside a bonfire on his handcart on a cold winter evening in New Delhi on January 6, 2025. (Photo by Sajjad HUSSAIN / AFP)
A vegetable vendor sits beside a bonfire on his handcart on a cold winter evening in New Delhi on January 6, 2025. (Photo by Sajjad HUSSAIN / AFP)

Global economic growth is projected to remain at 2.8% in 2025, unchanged from 2024, held back by the top two economies, the US and China, according to a United Nations report released on Thursday.

The World Economic Situation and Prospects report said that "positive but somewhat slower growth forecasts for China and the United States" will be complemented by modest recoveries in the European Union, Japan, and Britain and robust performance in some large developing economies, notably India and Indonesia.

"Despite continued expansion, the global economy is projected to grow at a slower pace than the 2010–2019 (pre-pandemic) average of 3.2%," according to the report by the UN Department of Economic and Social Affairs.

"This subdued performance reflects ongoing structural challenges such as weak investment, slow productivity growth, high debt levels, and demographic pressures," Reuters quoted it as saying.

The report said US growth was expected to moderate from 2.8% last year to 1.9% in 2025 as the labor market softens and consumer spending slows.

It said growth in China was estimated at 4.9% for 2024 and projected to be 4.8% this year with public sector investments and a strong export performance partly offset by subdued consumption growth and lingering property sector weakness.
Europe was expected to recover modestly with growth increasing from 0.9% in 2024 to 1.3% in 2025, "supported by easing inflation and resilient labor markets," the report said.

South Asia is expected to remain the world’s fastest-growing region, with regional GDP projected to expand by 5.7% in 2025 and 6% in 2026, supported by a strong performance by India and economic recoveries in Bhutan, Nepal, Pakistan and Sri Lanka, the report said.

India, the largest economy in South Asia, is forecast to grow by 6.6% in 2025 and 6.8% in 2026, driven by robust private consumption and investment.
The report said major central banks are likely to further reduce interest rates in 2025 as inflationary pressures ease. Global inflation is projected to decline from 4% in 2024 to 3.4% in 2025, offering some relief to households and businesses.
It calls for bold multilateral action to tackle interconnected crises, including debt, inequality, and climate change.
"Monetary easing alone will not be sufficient to reinvigorate global growth or address widening disparities," the report added.