The UAE is moving to make industrial resilience a national priority, not just a policy goal.

New measures aim to localise 5,000 products, strengthen supply chains, and scale AI across industries.

Why You Should Care

The UAE is deepening its industrial strategy by linking funding, procurement, and policy more tightly to local production. With USD 272.3 million (AED 1B) committed to industrial resilience and government demand now being directed toward local production, the country is tightening the link between policy, procurement, and manufacturing outcomes.

For businesses, this changes how opportunities are accessed. For investors, it signals where capital and demand will concentrate. Additionally, for operators, it makes localisation not just an advantage, but increasingly a requirement.

The Details

During a Cabinet meeting, His Highness Sheikh Mohammed bin Rashid Al Maktoum approved a set of decisions that aim to accelerate the UAE’s industrial growth and strengthen economic resilience.

At the center is the launch of a National Industrial Resilience Fund with a capital of USD 272.3 million (AED 1B). The fund aims to support the localisation of critical industries and reinforce supply chain resilience.

“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,” said H.H. Sheikh Mohammed bin Rashid Al Maktoum.

The fund will support national priority sectors, including food security, manufacturing, primary metals, mechanical, electrical, and chemical industries, and pharmaceuticals. This also includes active pharmaceutical ingredients, medical supplies, advanced technology, and construction.

 It will also support the expansion of local manufacturing, the development of strategic reserves, and the advancement of industrial value chains. Additionally, it aims to enhance industrial readiness for vital products, ensure continuity of supply, and strengthen economic security. 

A key component is the integration of artificial intelligence into industrial processes, including forecasting and risk management, with the aim of improving supply continuity and operational resilience.

Alongside the fund, the Cabinet approved amendments to the National In-Country Value Programme. This will enable its transition from an incentive-based model to a mandatory framework across selected sectors. This includes all federal entities and companies where the government holds at least a 25 percent stake.

The shift effectively directs government and institutional procurement toward national products, positioning public spending as a mechanism to localise critical industries, strengthen supply chains, and enhance self-sufficiency.

In parallel, a new policy was approved to increase the presence of UAE-made products across retail outlets and digital platforms. The initiative focuses on improving visibility, integrating local products into major supply chains, and supporting market stability.

The first phase will prioritise essential goods with scalable domestic production. This includes bottled water, dairy products, eggs, fresh and chilled poultry, bread, flour, locally packaged vegetable oils, and seasonal vegetables. Retailers and platforms will allocate dedicated space for these products based on defined standards, in coordination with government entities and private sector partners.

Additionally, the Cabinet approved the establishment of a National Industrial Data Committee, chaired by Hasan Jassim Al Nowais, Undersecretary of the Ministry of Industry and Advanced Technology. The committee will focus on identifying priority industrial data, improving accessibility, and integrating national systems. It will also focus on enabling real-time data use, including recommending legislative updates where needed.

The Ripple

The decisions extend beyond manufacturing.

For suppliers and SMEs, mandatory in-country value requirements reshape access to government-linked demand. Meanwhile, for retailers and platforms, shelf space becomes part of industrial policy. For investors, the signal is a clearer alignment between capital deployment and national priorities.

Regionally, the move reinforces a broader Gulf trend toward industrial localisation and supply chain resilience. Countries across the region are prioritising domestic production and economic security. The UAE’s approach adds scale and structure, particularly through funding, procurement mandates, and data infrastructure.

The integration of AI and the creation of a national industrial data framework also point to a more system-level approach. Thus, it aims to foster resilience not only through production capacity but through data, forecasting, and coordination across sectors.

What to Watch

Execution will define the impact.

The rollout of the fund and implementation of the mandatory In-Country Value Programme will offer early signals on how sectors operationalise industrial priorities.

“Make it in the Emirates 2026” will offer a near-term read on market response. This is through announced procurement opportunities and participation from global manufacturers.

At the same time, the effectiveness of the National Industrial Data Committee in enabling real-time, integrated data access will indicate how far the UAE can move from policy coordination to fully connected industrial systems.