The manufacturing sector is an integral part of stabilizing the economy
• Manufacturing tends to have strong linkages to other parts of the economy, creating demand for skills, inputs, manufacturing components, transportation and storage. This means that growth in manufacturing boosts growth throughout a broader set of activities, including in the service sector.
• Most innovation and technological advances originate from the industrial sector, which can then feed into other economic sectors, making them more productive as well.
• Increase in foreign exchange reserves; exports will rise and imports will decline, leading to more cash inflow, while self-sufficiency improves.
• The future also requires the development of digital capabilities, which highlights three important megatrends expected to shape the manufacturing landscape:
1.Digitalization: This increases productivity, optimizes the supply chain, and provides businesses more control over their operations.
2.Production rebalancing: This lowers bottlenecks and waste, allowing for higher capacity utilization while using fewer resources, resulting in smart production.
3.Industrial greening: Reducing carbon emissions and ensuring sustainability through the use of renewable energy sources.
• Mass production and the inevitable economies of scale: the more units produced, the lower the per-unit cost, thereby increasing the value of outputs per input.
• The utilization of natural resources by converting them to finished goods, which will enhance trade flow and create self-dependency.
• The creation of many jobs at all levels, via the sector’s long and complex supply chains.
We recognize the importance of a robust manufacturing sector for a diversified and thriving economy. To this end, we have implemented a series of incentives and compiled an investor pack specifically geared towards attracting businesses to establish or expand local manufacturing operations. These initiatives aim to not only benefit the companies themselves, but also generate a ripple effect that strengthens the UAE's overall economic landscape.
Below Document illustrates ADNOC incentives & Investor Pack: