In The Spotlight
Once overshadowed by hydrocarbons, the UAE’s manufacturing sector has now become a driving force for innovation, investment, and sustainable growth across the country. Without a doubt, manufacturing is poised to take centre stage in the country’s long-term aspirations for economic growth and resilience.
Various initiatives from the UAE’s visionary leaders all point towards continuously building, enhancing and reinforcing conditions that will further encourage investments and enable industrialisation to thrive and prosper.
Among them is Operation 300bn, the UAE’s national industrial strategy launched in 2021 which aims to more than double the industrial sector’s GDP contribution from AED133 billion in 2021 to AED 300 billion by 2031.
In addition, programmes, projects and initiatives by the Ministry of Industry and Advanced Technology (MoIAT) such as the National In-Country Value Program (ICV), ‘Make it in the Emirates’, the Technology Transformation Program (TTP), and the Industrial Technology Transformation Index (ITTI) have all been designed and geared towards pro-actively pushing forward the UAE’s manufacturing and industrial ambitions.
Clearly, the UAE is well on track on achieving its industrialisation objectives and its relentless pursuit of economic diversification have already produced remarkable results.
In the first quarter of 2025, non-oil GDP grew 5.3% , reaching AED 352 billion, according to the UAE's Ministry of Economy and Tourism (MOET). The ministry also identified manufacturing as the fastest growing economic activity, registering 7.7% growth in Q1 2025.
According to the latest report by Abu Dhabi Customs, Abu Dhabi's non-oil foreign trade grew by 34.7% in H1 2025, reflecting a thriving manufacturing industry and a key source of UAE exports.
Driven by visionary leadership
It is quite evident that the vision of the UAE’s leadership for the future of this great nation is fuelled by a determination to thrive, succeed and lead.
Not only are they aiming and enabling the manufacturing sector to grow, but they also implement a deliberate governmental policy and strategy that focuses on strengthening the adoption of advanced manufacturing, sustainability, and Industry 4.0 technologies including artificial intelligence, the Internet of Things (IoT), and 3D printing.
Over the years, the UAE's manufacturing sector has continuously demonstrated its resilience. In 2022, manufacturing GDP growth surpassed pre-pandemic levels by tallying 8.75% growth.
With Abu Dhabi leading the way with a growth of 9.7% , the emirate even further sharpened its focus on manufacturing with the launch of the Abu Dhabi Industrial Strategy (ADIS) in the same year. As a result, in the first half of 2025, Abu Dhabi's non-oil GDP grew 6.37% year-on-year, according to the Statistics Centre - Abu Dhabi
The attractiveness and pull for foreign investment into the UAE’s manufacturing sector have also remained strong. At the fourth edition of 'Make it in the Emirates', a 122,000-strong participation of delegates from across the world was a clear indication of the global attention to the sector’s growing appeal.
With US$11bn committed to advanced manufacturing over five years, the UAE is sending a clear message: it is open for industrial business, and it is serious about reducing its reliance on oil.
Innovation and sustainability at the core
Recognising the need to catch up with countries with larger and more advanced manufacturing sectors in a globalised market, the UAE is not just building factories – it's building smart factories.
Industry 4.0 technologies are being integrated into production lines, making UAE manufacturing globally competitive. Sustainability is also a priority, with circular economy models becoming standard practice.
Solar-powered facilities take advantage of the abundant sunshine, while water recycling systems ensure efficient use of water in a desert climate.
These are supported by the MoIAT's ITTI, which measures the digital maturity and sustainability practices of factories, provides a roadmap for their digital transformation and encourages the adoption of Industry 4.0 solutions and sustainability best practices.
Turning challenges into opportunities
While there are indeed challenges in the UAE’s journey towards economic diversification and industrialisation, the country’s leaders have cleverly manoeuvred around them and have instead focused on capitalising on the opportunities presented by these challenges. An uneven manufacturing growth among the emirates is being addressed by the federal government through Operation 300bn, with a focus on equitable development.
Among its goals is to create 13,500 new industrial facilities and 25,000 specialised jobs, many of which are being directed toward less industrialised regions.
For instance, MoIAT is working to ensure that Northern Emirates like Ras Al Khaimah, Fujairah and Umm Al Quwain benefit from industrial expansion through tailored support and infrastructure upgrades.
Additionally, the ICV program provides incentives for companies sourcing locally, further benefiting the economy. These initiatives create numerous opportunities for businesses and individuals to widen their reach in the burgeoning manufacturing sector.
In line with the rapid adoption of Industry 4.0 technologies, the UAE is also strengthening partnerships among industry, academia and various vocational training programmes, in collaboration with global tech companies, to help bridge any skills gap and ensure a seamless transfer of the latest technological knowledge to the UAE workforce.
Today, the UAE’s manufacturing sector stands at a pivotal juncture. With the UAE's emphasis on attracting investments and prioritising inclusivity, innovation, and sustainability, the country is laying the foundation for long-term industrial leadership.
Alongside policy support, the UAE's strategic location and rapidly improving infrastructure position it as a rising global manufacturing hub.
Manufacturing is no longer just a supporting act in the UAE’s economic story. It’s now a lead character that plays a vital role in shaping a resilient, innovative, and sustainable future for the country.
By Noritsugu Mifune, CEO, Al Gharbia Pipe Company
As manufacturing across the GCC accelerated towards digitalisation, advanced design and engineering software becomes central to competitiveness. GDS Middle East has played a pivotal role in supporting local manufacturers to modernise product development, engineering workflows and production processes.
In an exclusive interview with Technical Review Middle East, director Jimmy Joseph highlighted the company's main offerings, which include bespoke solutions for the manufacturing sector.
The company enables local firms to shorten product development cycles by facilitating the adoption of tools such as Solidworks, Catia, Enovia and Simulia.
These are platforms which, according to Joseph, allow engineering teams to iterate designs more quickly, test and optimise solutions early in development, and respond faster to market demands.
“These technologies allowed engineering teams to test, refine and optimise designs early in the development phase, which significantly reduced time to market,” he said.
Solutions such as Solidworks Sheet Metal Design also help manufacturers optimise material usage and streamline production processes, reducing waste and lowering costs.
GDS additionally supports firms seeking differentiation through customisation, allowing manufacturers to meet specific client requirements and target niche markets.
But this is not the company's only offerings.
Training and upskilling forms a core part of GDS Middle East’s approach.
Joseph highlighted the importance of capability building, explaining that “technology alone does not deliver results. It is about enabling engineers and designers to use these tools effectively, and that comes through hands-on training and ongoing support.”
How can automation help?
Industry insights and analytics provided by GDS further helps manufacturers align their product strategies with market trends, improving efficiency, productivity and competitiveness across the region.
Digital tools also reshaped engineering workflows. Platforms such as Solidworks PDM and Enovia, deployed either on premise or via the 3D Experience cloud platform, enabled real-time collaboration across teams and stakeholders, regardless of location.
Automation through tools like DriveWorks allowed repetitive tasks to be handled efficiently, freeing engineers to focus on complex design and innovation.
Data-driven features and AI-enabled analytics provided insights that helped optimise both processes and products.
Simulation tools such as Abaqus and Solidworks Simulation accelerated development by allowing virtual testing and validation before production, reducing time, costs and risk.
Generative design and additive manufacturing added additional efficiencies by creating optimised, material-efficient designs.
GDS Middle East also addressed the challenges manufacturers faced in adopting new software.
But there are challenges ahead
Resistance to change, integration with existing systems, skill gaps and high initial investment costs were common barriers.
Joseph noted that the company worked closely with clients to demonstrate the long-term value and ROI of technology adoption, and that “annual subscription offerings from Dassault Systèmes help customers reduce the initial cost drastically and absorb it into operating budgets.”
Tailored solutions and ongoing technical support ensured firms could continue optimising their workflows.
Looking ahead, Joseph believes the greatest opportunities for design software lay in streamlining the entire manufacturing lifecycle.
“Advanced design and analysis tools can streamline the design process through simulation, reducing time-to-market and enabling faster iterations and modifications,” he said.
Cloud-based collaboration facilitates communication across dispersed teams, generative design enables customised products, and integration with manufacturing execution and ERP systems creates connected workflows that reduce errors and enhance efficiency.
GDS Middle East positions itself not simply as a software provider but as a technology implementation partner.
A fully integrated platform
Its end-to-end approach—from collaboration and design to manufacturing and dispatch—combined with in-house technical expertise and continuous support, allows manufacturers in the GCC to adopt, integrate and benefit from digital tools effectively, improving competitiveness in an increasingly digital industrial landscape.
As Joseph puts it, “GDS Middle East is uniquely positioned to seize new opportunities in the GCC by serving as a true technology implementation partner rather than just a product supplier.”
He adds that his company's skilled in-house technical team “sets us apart in the region, allowing us to support clients beyond the sale with hands-on customization, training, and continuous support. In short, GDS captures opportunities by being the partner that helps customers implement and succeed with technology, every step of the way.”
UAE-based fuel technology company Fuelre4m has announced new results showing its fuel treatment can deliver consistent fuel efficiency and emissions reductions across buses, trucks, and heavy equipment operating in real-world conditions.
Independent testing led by the National Technical University of Athens (NTUA), one of Europe’s leading engineering and applied sciences universities, evaluated Fuelre4m’s technology under tightly controlled laboratory conditions using a commercial diesel engine running on standard B10 biodiesel. The tests recorded 3.5–6.7% lower fuel consumption at identical engine speed and mechanical torque, alongside consistent efficiency improvements of 15–21% in the dominant mid-load operating range of approximately 1,400–1,550 RPM.
“The laboratory result establishes a conservative baseline under fixed torque, while real-world operation allows the same efficiency improvement to reduce torque demand, improve gear behaviour, and compound over time, resulting in larger total fuel savings across a complete duty cycle. Crucially, the only variable introduced during testing was the treatment of the fuel itself, with no changes to engine hardware, electronic calibration, operating limits, or fuel specification,” Fuelre4m said.
The NTUA laboratory findings are now being reinforced by repeatable real-world trials across UAE transport and industrial fleets. These include city and intercity buses operating on Dubai service corridors, mixed fleets incorporating VDL and King Long buses, and heavy trucks and off-highway equipment operating under high-load conditions. Once sufficient fuel contact time is achieved, measured fuel efficiency improvements frequently match or exceed laboratory results. Fixed-route trials on UAE buses show directional fuel consumption reductions of approximately 14–17%, with the strongest improvements consistently appearing in the mid-RPM “working bands” that dominate urban and intercity duty cycles.
Trials were conducted across mixed fleets spanning multiple manufacturers, engine sizes, and emission standards, confirming that the benefits are not limited to a single platform or technology generation. No adverse impacts were observed on drivability, engine temperatures, or aftertreatment systems. Quarry and heavy-equipment trials, including large off-highway haul trucks, demonstrated reduced fuel consumed per unit of work, with several recording double-digit efficiency improvements while maintaining or increasing productivity.
Commenting on the findings, George Papalambrou, Associate Professor of Control Systems at NTUA, who oversaw the independent testing, said, “We were genuinely surprised by the consistency and magnitude of the mid-range efficiency improvements. The results were not isolated to a single operating point and were observed under multiple control regimes. This is a positive development not just for one sector, but potentially for all industries relying on internal combustion engines, including shipping and maritime transport.”
Rob Mortimer, CEO of Fuelre4m, said, “For decades, the industry has optimised engines around the assumption that fuel behaviour is fixed. These results show that when you improve how fuel behaves, efficiency and emissions improve immediately, using the engines already operating across the UAE today.”
Fuelre4m is expanding controlled in-service validation programmes across the UAE in collaboration with fleet operators, government entities, and industrial partners. These programmes will focus on high-utilisation routes, long-duration performance validation, and quantified emissions reduction under representative operating conditions. Further independent testing using fully instrumented dynamometer facilities is also planned to extend validation into transient operation and regulatory-grade certification environments.
Parsons Corporation has officially opened its new regional office in Doha, marking a significant expansion of the company’s footprint in Qatar and reinforcing its long-term commitment to supporting national development priorities.
The office was inaugurated by Carey Smith, chair, president, and chief executive officer of Parsons Corporation. The event was attended by senior representatives from the U.S. Embassy Doha, Qatar’s Public Works Authority, Qatari Diar, the American Chamber of Commerce Qatar, alongside Parsons’ regional leadership team and employees.
Located in Al Emadi Financial Square, the new Doha office will serve as a regional design hub for Parsons’ expanding portfolio of infrastructure design, urban development, mobility and programme management projects across Qatar. The facility is intended to enable closer collaboration with clients, project teams and stakeholders as major infrastructure and development programmes across the country continue to progress.
“Parsons’ growth in Qatar underscores the company’s outstanding reputation in the Middle East, our position as a trusted partner to our customers, and our competitive advantage in the region,” said Smith. “For more than two decades, we’ve proudly partnered with important customers across Qatar to deliver on some of the nation’s most prominent and vital infrastructure projects. Expanding our physical presence in Doha strengthens our ability to deliver complex, mission-critical programmes with speed and agility. This expansion strengthens our regional presence and global capabilities, and highlights the important role our thriving Middle East portfolio plays in the company’s continued global success.”
Parsons has maintained a presence in the Middle East since the 1950s and brings extensive regional expertise across project and programme management, urban development, transportation and master planning. Its capabilities span rail and metro systems, aviation, roads and ports, smart mobility solutions, asset management and large-scale urban development programmes.
In Qatar, Parsons has played a key role in delivering sustainable infrastructure and smart city initiatives aligned with the country’s long-term vision for growth. The company has contributed to several landmark national projects, including the FIFA World Cup Qatar 2022, Seef Lusail Development, Al Khor Expressway, Lusail Light Rail Transit, Doha Metro networks and the expansion of Hamad International Airport.
The new Doha office builds on Parsons’ more than 25-year track record in Qatar, during which the company has supported transportation planning, expressway programmes, major roadway and drainage systems, as well as programme, construction management and advisory services for national infrastructure initiatives.
The office will host multidisciplinary teams supporting a pipeline of ongoing and upcoming projects across Qatar, positioning Parsons to respond efficiently to future opportunities while continuing to deliver complex infrastructure programmes that support economic growth and urban development in the country.
Volvo Penta has introduced the G17 natural gas engine, expanding its power generation portfolio with a solution designed to support fuel flexibility, lower emissions and resilient energy systems as the global energy transition accelerates.
The G17 is the natural gas counterpart to Volvo Penta’s established D17 genset engine and forms part of the company’s wider transformation journey. Designed to meet rising demand for dependable and lower-emission power, the engine offers a pathway for customers seeking to decarbonise operations without compromising on performance or reliability.
“The energy transition isn’t one-size-fits-all,” says Kristian Vekas, Product Manager for Industrial Power Generation at Volvo Penta. “It requires multiple technologies and fuel pathways working in parallel. The G17 expands our power generation portfolio with a gas option engineered to meet rising global demand for dependable, lower-emission solutions that are backed by the strength of the Volvo Group and our global support network. It reflects our commitment to providing customers with fit-for-purpose solutions to support their energy objectives as the landscape continues to evolve.”
Built on the same heavy-duty platform as the D17, the G17 is a 17-litre, six-cylinder, spark-ignited engine capable of operating on both pipeline-quality natural gas and renewable natural gas. This dual-fuel capability allows operators to reduce carbon intensity while maintaining uptime, durability and responsiveness in mission-critical applications.
“The G17 is engineered to deliver lower emissions without trade-offs,” says Kristian. “Its flexible fuel capability helps reduce carbon intensity while maintaining the power density, responsiveness and durability customers expect from Volvo Penta’s heavy-duty platform.”
Engineered to deliver approximately 450 kWe at 1,800 rpm, the G17 provides high power output from a compact footprint. Its smaller enclosure enables reduced installation space and lower housing material costs, while fast load acceptance supports reliable performance during demand surges or grid transitions. The engine’s pipeline-ready design allows direct connection to existing gas infrastructure, simplifying installation and removing the need for additional fuel-conditioning systems.
The G17 has been developed to deliver reduced emissions of nitrogen oxides and particulate matter. Advanced combustion controls, low-pressure Exhaust Gas Recirculation (EGR) and a high-efficiency three-way catalyst enable compliance with US EPA stationary power application standards, positioning the engine as a viable option for operators with strong ESG targets or operations in air quality-sensitive zones.
Its compact, stackable platform makes the engine well suited for space-constrained environments such as data centres. It can also be integrated into hybrid energy systems that combine internal combustion engines, renewable fuels and battery storage, enabling scalable and adaptable power architectures.
Supported by Volvo Penta’s global dealer network, the G17 is intended to deliver long-term performance and reliability. “With the G17 gas engine, Volvo Penta is expanding its ability to deliver integrated energy solutions that combine proven technology, emerging fuel pathways and strong service,” Kristian concludes.
The Renewable Carbon Initiative (RCI) has published an extended second version of its latest report, presenting eleven peer-reviewed lifecycle assessment (LCA) case studies that examine the carbon footprint of materials and products made from renewable carbon compared with fossil-based alternatives.
The case studies represent what RCI describes as the highest possible scientific standard and have all been peer-reviewed by external, independent experts. They assess products developed by RCI members Avantium (Netherlands), BASF (Germany), Braskem (United States), Econic (United Kingdom), Fibenol (Estonia), IFF (United States), LanzaTech (United States), Lenzing (Austria), Neste (Finland), Peter Greven (Germany) and Primient Covation (United States).
According to the report, the carbon footprint of chemicals and materials has become one of the most critical indicators at a time when the United Nations continues to issue “Code Red” warnings on climate change. Fossil resources are identified as the primary driver of human-induced climate change, accounting for more than 70% of global warming. While sectors such as energy can decarbonise by shifting away from fossil fuels, carbon-dependent industries face a different challenge.
For the chemical and materials sectors, carbon is an essential feedstock that cannot be eliminated. Instead, the report argues that defossilisation is required to prevent further influxes of fossil carbon into industrial carbon cycles and the atmosphere. This involves replacing fossil feedstocks with renewable carbon sources, including bio-based, CO₂-based and recycled carbon.
However, the report also stresses that alternative production pathways cannot be assumed to be automatically better for the climate. Transparent and robust evaluation is required, taking into account process emissions, energy demand and current production scales. Without this, claims of environmental superiority risk being misleading.
The eleven peer-reviewed LCAs presented in the report provide what RCI describes as conclusive proof that renewable carbon products already available on the market can deliver substantial greenhouse gas reductions. Across the case studies, GHG savings range from 30% to as much as 90% when compared with fossil-based counterparts. The findings also indicate that, as technologies mature and scale up, there is significant potential for further emission reductions in the future.
RCI said the evidence base created by the report is intended to inform both policy-makers and investors, countering concerns that the climate benefits of renewable carbon remain theoretical. A central conclusion is that reducing the introduction of additional fossil carbon today will lessen the future reliance on costly atmospheric carbon removal technologies.
By enabling more circular carbon loops, the report concludes that renewable carbon feedstocks already represent a proven and viable pathway for defossilising chemical industries in line with global climate targets.
As the UAE accelerates its national sustainability agenda, climate action is shifting from voluntary pledges to formal regulatory expectation. Federal Decree-Law No. 11 of 2024 on the Reduction of the Effects of Climate Change marks a turning point, introducing enforceable obligations around emissions management, alongside administrative penalties for non-compliance.
While the finer details of implementation and reporting pathways are still evolving, the direction of travel is clear.
Organisations are now expected to show real progress in measuring, managing, and governing their climate impact.
For many businesses, this represents more than a compliance update. It is a signal that sustainability data is moving into the same category as financial data, something boards and executives must understand, trust, and use to make decisions.
Against this backdrop, companies across sectors, from industry and real estate to logistics, finance, and investment, are reassessing how ESG data is generated and validated. We spoke with Jomy Joseph, Director at CoralDune Partners and former Regional Director for UL Solutions in the Middle East and Africa, about what Decree 11 means in practice and how organisations can respond without turning sustainability into a box-ticking exercise.
According to Joseph, adoption of the new law is already under way, but not in a uniform manner. “What I see on the ground is a phased adoption, rather than a single switch being flipped,” he says. Large groups, particularly those with international investors, lenders, or global customers, are leading the way. Many have been reporting emissions in some form for years, and Decree 11 is pushing them to tighten governance, improve data quality, and clarify accountability.
Assessing supply chains
The next wave, he explains, will come through supply chains. Contractors, manufacturers, logistics providers, and service companies are increasingly being asked to provide credible emissions data by customers who are themselves responding to regulatory and investor pressure.
For the mid-market, awareness is still uneven, but Joseph expects that to change quickly. “The UAE has made it clear through its Net Zero 2050 commitment and wider sustainability agenda that climate action is no longer optional. Decree 11 turns that ambition into a structured expectation.”
While the law allows for significant financial penalties, ranging from AED 50,000 up to AED 2,000,000 and rising for repeated violations, Joseph believes the earliest impacts will often be commercial rather than regulatory.
Companies may find themselves excluded from tenders where sustainability disclosure is part of the qualification process, subject to greater scrutiny from banks and insurers, or exposed to reputational risk if their figures cannot be supported with evidence. “Even before enforcement is felt directly, the market itself is already moving in the same direction as the regulation,” he notes.

The UAE has supported initiatives to reduce emissions over the decades
At CoralDune Partners, Joseph and his team focus on helping boards and CEOs embed ESG reporting as a core governance and performance management function. Drawing on his background in testing, inspection, certification, and enterprise sustainability, he stresses that effective ESG reporting is not a marketing exercise. Instead, it starts with clarity around what actually matters for a specific business, sector, and geography.
That means defining a measurable baseline, agreeing on calculation methods, and ensuring consistency year on year. It also requires clear ownership, internal controls, and audit trails, so that reporting is defensible and repeatable.
Crucially, it involves building a practical roadmap that links emissions reduction to real operational levers, such as energy use, procurement, logistics, product design, and buildings. For mid-sized companies, the challenge is doing this without unnecessary complexity. “The goal is not to copy large enterprise reporting, but to build a credible, scalable foundation that leadership can rely on,” Joseph says.
Technology, and particularly AI, has a growing role to play. While spreadsheets remain familiar tools, Joseph argues they were never designed to support long-term, regulated reporting under investor scrutiny. AI can help automate data capture from invoices, fuel logs, utility bills, and ERP systems, classify it correctly, and flag anomalies before numbers reach management.
It also enables faster scenario planning, allowing companies to see how changes in suppliers, equipment, or logistics routes affect both emissions and cost. “The real issue is not the tool, but the outcome,” he says. “Can the organisation produce numbers that are consistent year after year, backed by evidence, and ready to be checked?”
Importantly, Decree 11 does not only apply to large enterprises. The focus is on activities and emissions sources, not company size. Smaller businesses and startups should not assume they are automatically out of scope.
For them, compliance does not mean producing lengthy reports. A basic emissions baseline, clear calculation records, and a short list of practical actions that reduce both cost and emissions are often enough to start. Many will first feel the impact through customer and supply chain requirements. Being prepared early puts them in a far stronger position.
Challenges ahead
One of the biggest issues Joseph sees is trust in the data itself. Many organisations can produce a sustainability statement, but far fewer can clearly explain where the numbers came from and whether the same approach will be used next year. This is where ESG reporting becomes a board-level issue, as weak data translates directly into regulatory, commercial, and reputational risk.
To reduce greenwashing risk, Joseph points to the importance of moving from claims to evidence and assurance. Structured measurement, reporting, and verification processes, independent assurance under standards such as ISO 14064-3, product-level tools like life cycle assessments and environmental product declarations, and recognised built environment frameworks all help convert intent into measurable performance. “If a claim cannot be supported with data and documentation, it should not be made,” he says.
Globally, Joseph sees useful benchmarks in the European Union’s focus on structure and comparability, Singapore’s practical and business-friendly approach, and the UK’s emphasis on transition planning. The UAE, he believes, has the advantage of speed. With strong digital government infrastructure and clear national targets, it has the potential to move rapidly from policy to execution.
Ultimately, credible ESG reporting is becoming inseparable from competitiveness. As sustainability data increasingly shapes access to capital, insurance, and investment, Decree 11 is not just about compliance. It is about how companies position themselves for the next phase of growth in a low-carbon economy.
The Renewable Carbon Initiative (RCI) has published an extended second version of its latest report, presenting eleven peer-reviewed lifecycle assessment (LCA) case studies that examine the carbon footprint of materials and products made from renewable carbon compared with fossil-based alternatives.
The case studies represent what RCI describes as the highest possible scientific standard and have all been peer-reviewed by external, independent experts. They assess products developed by RCI members Avantium (Netherlands), BASF (Germany), Braskem (United States), Econic (United Kingdom), Fibenol (Estonia), IFF (United States), LanzaTech (United States), Lenzing (Austria), Neste (Finland), Peter Greven (Germany) and Primient Covation (United States).
According to the report, the carbon footprint of chemicals and materials has become one of the most critical indicators at a time when the United Nations continues to issue “Code Red” warnings on climate change. Fossil resources are identified as the primary driver of human-induced climate change, accounting for more than 70% of global warming. While sectors such as energy can decarbonise by shifting away from fossil fuels, carbon-dependent industries face a different challenge.
For the chemical and materials sectors, carbon is an essential feedstock that cannot be eliminated. Instead, the report argues that defossilisation is required to prevent further influxes of fossil carbon into industrial carbon cycles and the atmosphere. This involves replacing fossil feedstocks with renewable carbon sources, including bio-based, CO₂-based and recycled carbon.
However, the report also stresses that alternative production pathways cannot be assumed to be automatically better for the climate. Transparent and robust evaluation is required, taking into account process emissions, energy demand and current production scales. Without this, claims of environmental superiority risk being misleading.
The eleven peer-reviewed LCAs presented in the report provide what RCI describes as conclusive proof that renewable carbon products already available on the market can deliver substantial greenhouse gas reductions. Across the case studies, GHG savings range from 30% to as much as 90% when compared with fossil-based counterparts. The findings also indicate that, as technologies mature and scale up, there is significant potential for further emission reductions in the future.
RCI said the evidence base created by the report is intended to inform both policy-makers and investors, countering concerns that the climate benefits of renewable carbon remain theoretical. A central conclusion is that reducing the introduction of additional fossil carbon today will lessen the future reliance on costly atmospheric carbon removal technologies.
By enabling more circular carbon loops, the report concludes that renewable carbon feedstocks already represent a proven and viable pathway for defossilising chemical industries in line with global climate targets.
Ecolab, a global leader in sustainability solutions for water, hygiene and infection prevention, has signed a non-binding MoU with the Saudi Water Authority (SWA) aimed at accelerating water innovation and supporting the Kingdom’s long-term sustainability ambitions.
The agreement reflects a shared commitment to advancing more efficient, resilient and circular water systems in line with Saudi Arabia’s Vision 2030.
The MoU was formalised during the US-Saudi Water Summit 2025, held last month in Palo Alto, California. The summit brought together international water sector leaders to discuss emerging challenges, technological advances and collaborative models capable of transforming water management across the Kingdom. Against a backdrop of rising demand, climate pressures and industrial expansion, the agreement highlights the growing importance of public-private partnerships in securing Saudi Arabia’s water future.
Under the MoU, SWA and Ecolab will collaborate to position sustainable water management as a strategic enabler of national development. By improving water efficiency and reuse, the partnership aims to help safeguard scarce water resources while enhancing water quality across key sectors. These efforts are also expected to deliver wider environmental and economic benefits, including reduced energy consumption, lower CO2 emissions and improved operational efficiency for industrial and commercial operators.
The framework for cooperation includes the exchange of technical insights and best practices across sectors such as data centres, refineries, petrochemicals, heavy industry, desalination, manufacturing, food and beverage, and hospitality.
Key areas of partnership
The collaboration also covers support for water source selection, regulatory development and performance monitoring, alongside workshops focused on advanced digital solutions such as smart water systems and predictive maintenance. In addition, the partners will explore pilot projects within Saudi industrial cities, applying Ecolab’s global technologies under local operating conditions, and identify opportunities to support innovation initiatives, including Rabigh Oasis, the Global Water Innovation Prize (GWIP), collaborative research and development roundtables, and broader innovation promotion programmes.
Ecolab has maintained a strong presence in Saudi Arabia for more than four decades through its Nalco Water business, supporting major industrial players in optimising water use. Today, its solutions are deployed across energy, manufacturing, food and hospitality, helping organisations conserve water, reduce energy consumption and strengthen long-term business resilience while meeting sustainability goals.
His Excellency Abdullah bin Ibrahim Al-Abdulkarim, President of the Saudi Water Authority, highlighted the partnership as a step toward building a world-class water sector that safeguards resources, supports national growth, and demonstrates how innovation and sustainability can secure water for future generations in line with Vision 2030.
Stefan Umiastowski, Ecolab’s Senior Vice President & CEO for India, Middle East, and Africa, said, “This collaboration represents an important step in advancing Saudi Arabia’s Vision 2030 commitment to long-term water sustainability in a region where water is one of the most critical resources. As digitalization and AI reshape economies and create new demand patterns, intelligent water management has become essential for sustainable growth. By combining Ecolab's global innovation capabilities with the SWA’s vision and local expertise, we're creating a powerful platform to scale water transformation across the Kingdom's most strategic industries.”
Overall, the MoU demonstrates how closer collaboration between government and industry can translate sustainability ambitions into measurable outcomes, supporting the transition towards Net Zero while enhancing industrial competitiveness and water security across Saudi Arabia.
As the Middle East accelerates the adoption of smart buildings and next-generation construction technologies, the need for clear regulatory frameworks and internationally aligned standards is becoming increasingly critical.
The International Code Council (ICC) will contribute to two technical symposiums at Intersec 2026, taking place from 12-14 January at the Dubai World Trade Centre. ICC’s participation underscores its commitment to supporting the safe, scalable and compliant evolution of the built environment across the region.
Through its involvement, ICC will engage in policy-driven dialogue and technical knowledge exchange, reflecting its integrated approach to enabling innovation while safeguarding safety, performance and resilience. Mohamed Amer, Managing Director, ICC MENA, will represent the organisation at both the Smart Building Summit 2026 and FCIA–NFCA PFPCON ’26, which are being held alongside Intersec 2026.
At the Smart Building Summit 2026, ICC will take part in the panel discussion titled “Navigating the Global Regulatory Landscape: Standards, Policies & Incentives for Smart Buildings.” The session will explore how regulatory frameworks, certification schemes and government incentives are influencing smart building adoption across the region. ICC’s contribution will focus on the role of globally recognised codes and standards in aligning international best practice with local regulatory requirements, while supporting performance assurance and long-term operational efficiency within smart building ecosystems.
ICC will also deliver a technical presentation at FCIA–NFCA PFPCON ’26, a specialist symposium held during Intersec 2026 in Dubai. Entitled “Building the Future: Enabling Safe Adoption of 3D Printing & Modern Methods of Construction,” the presentation will examine regulatory, safety and compliance considerations linked to emerging construction technologies. It will further highlight how performance-based codes and standards can support responsible innovation while maintaining structural integrity, fire safety and quality assurance.
By linking smart building regulation with advanced construction practices, ICC continues to advocate a coordinated, standards-led approach to delivering safer, more resilient and future-ready built environments across the Middle East.
Energy Capital Group (ECG), a Riyadh-based specialist investor, has launched a $300 million private equity fund aimed at supporting Saudi Arabia’s industrial transformation and advancing the Kingdom’s Vision 2030 objectives.
The ECG-Industrial Metals and Services Fund will focus on investments in integrated industrial and mining services that strengthen local supply chains and support long-term industrial growth.
The fund has already secured around US$100mn in soft commitments from investors. ECG focuses on energy, industrial and resource-based sectors, with a strategy centred on building and scaling businesses that reinforce critical supply chains and contribute to sustainable industrial development across the region.
Saudi Arabia’s Vision 2030 sets out an ambitious agenda to diversify the economy, attract domestic and international investment, and position the Kingdom as a global industrial and investment hub. Through targeted investments in metals services and supply chains, the new fund is intended to support these goals while capitalising on the Kingdom’s expanding mining and industrial base.
Ali Alturki, Managing Partner of ECG, said, “The aim of this fund is to capitalise on Saudi Arabia’s generational mining investment opportunity, supporting the localisation of essential services and driving innovation across industry and downstream processing.
This new fund will support the Kingdom’s ambition by investing in Saudi-based service platforms, positioning metals supply as a reliable, contracted service to the Kingdom’s industrial base.
“For this fund we are partnering with Jay Hambro and the Verdigris team who bring broad knowledge of the metals sector and an excellent track record of value delivery.”
Jay Hambro has joined ECG as Managing Partner for the ECG – Industrial Metals and Services Fund, with the team from Verdigris Strategic providing sector-specific strategic advice. Verdigris Strategic is a metals supply chain services advisory group with experience across global markets.
Hambro said, “ECG’s new fund’s strategy places it at the forefront of a rapidly evolving sector critical to the energy transition and supply chain resilience. Saudi Arabia has identified US$2.5 trillion in untapped mineral resource capability which is being scaled rapidly through licencing rounds, public capital and policy support. The Kingdom has recently issued over two thousand exploration licences and is targeting a US$75bn contribution to its GDP before the end of the decade.
“My team and I have been working with ECG, one of leading industrial services private equity investors in the region, for nearly four years and the fund is a natural evolution in this partnership.”
The fund was launched at the 2026 Future Minerals Forum in Riyadh, a government-led platform focused on shaping the future of the global minerals sector, held at the King Abdulaziz International Conference Center.
THi Holding Management Corporation (THi) has marked a major milestone in its Middle East expansion with the groundbreaking of the THi Ras Al Khaimah Smart Manufacturing Industrial Park, officially launching construction of its first industrial park project in the region.
The development is the first project under THi’s Middle East industrial and real estate platform and forms a central pillar of the company’s long-term strategy to support advanced manufacturing and industrial localisation. The park is being developed on a site spanning more than 300,000 sq m within the Al Hamra area of Ras Al Khaimah Economic Zone (RAKEZ), and is intended to serve high-value manufacturing and industrial companies seeking modern, scalable and high-specification facilities in the UAE.
The groundbreaking ceremony was attended by representatives from local authorities, financial institutions, and regional and international industrial partners, highlighting the project’s strategic importance to Ras Al Khaimah’s broader industrial development ambitions.
Designed as a high-standard industrial development, the THi Ras Al Khaimah Smart Manufacturing Industrial Park will be tailored to the needs of advanced and smart manufacturing sectors. The project is planned to accommodate a range of industries, including new energy, advanced manufacturing, logistics and industrial technology. Sustainability considerations and efficient infrastructure planning have been embedded into the design, reflecting growing demand for environmentally responsible and operationally efficient industrial facilities.
THi will act as developer, asset manager and operator of the project, overseeing the full lifecycle from construction through to long-term management and operations. Construction will be delivered in phases, aligned with tenant requirements and operational readiness, allowing flexibility as market demand evolves.
“The commencement of construction at Ras Al Khaimah marks an important step in THi’s international expansion,” said Frank Wu, Founder of THi. “This project reflects our commitment to bringing our industrial development and operational experience into the Middle East, and to building high-quality industrial platforms that support long-term manufacturing growth and economic diversification in the region.”
The development follows a Memorandum of Understanding signed between RAKEZ and THi in 2024, which established a framework for collaboration in industrial development and education. The agreement supports the creation of advanced manufacturing infrastructure and knowledge transfer in Ras Al Khaimah.
Commenting on the project’s launch, RAKEZ Group CEO Ramy Jallad said, “We are pleased to welcome THi to the emirate and see this project move from strategic intent to on-the-ground delivery. The scale and ambition of this industrial park reflect the confidence global partners place in both RAKEZ and the emirate as a base for advanced manufacturing. Through our collaboration, we are enabling high-value industrial activity, skilled job creation, and long-term industrial innovation aligned with Ras Al Khaimah’s economic priorities.”
Drawing on extensive experience in industrial and manufacturing-focused real estate, THi plans to use the Ras Al Khaimah project as a foundation for further expansion across the Middle East, adapting its global expertise to regional market and regulatory requirements.
Saudi Arabia has claimed the top spot globally in the Road Network Connectivity Index, according to a report by the World Competitiveness Forum. The Kingdom also ranked fourth among G20 nations in the Road Infrastructure Quality Index, highlighting its ongoing investment and development in the road sector.
For a country of Saudi Arabia’s size, these rankings underscore its growing international prominence and the strategic importance of its transport network. The Kingdom’s road system stretches over 73,000 km—almost double the circumference of the Earth—providing critical domestic connectivity while linking Saudi Arabia to eight neighbouring countries, including GCC states, Jordan, Iraq, and Yemen. The network supports key sectors such as Hajj and Umrah, tourism, trade, and broader logistics, positioning the Kingdom as a regional hub.
A spokesman for the Roads General Authority (RGA) attributed the achievements to the adoption of global best practices and safety-focused regulations. “We have launched the Road Code as a unified technical reference for all entities responsible for roads, guaranteeing the highest standards of planning, design, implementation and maintenance,” he said.
The authority has also introduced the Road Right-of-Way Permits Regulation, which organises activities within road corridors, enhances safety, and improves user experience, the spokesman added.
The RGA continues to roll out major projects and initiatives under the Roads Sector Program to strengthen infrastructure and achieve strategic targets. These include aiming for sixth place globally in the Road Quality Index by 2030, reducing road fatalities to fewer than five deaths per 100,000 people, implementing road safety features across the network in line with the International Road Assessment Programme (IRAP), and maintaining advanced service levels to meet growing traffic demands.
Saudi Arabia’s recognition in these international rankings reflects its commitment to combining world-class infrastructure with enhanced safety standards, while supporting economic growth and regional connectivity. The Kingdom’s road network is increasingly seen not just as a transport system, but as a driver of development and a vital component of national strategic planning.
Holcim has joined the Alliance for Industry Decarbonization (AFID) under the International Renewable Energy Agency (IRENA), reinforcing its commitment to supporting the transition towards low-carbon construction in the UAE and across the wider region.
The membership was formalised during Abu Dhabi Sustainability Week in January 2026 and represents a strategic milestone for Holcim UAE, signalling a shift from site-level operational decarbonisation to broader sector-wide leadership. Through its participation in AFID, Holcim is aligning itself with a government-led platform that brings together policymakers, international organisations and industrial leaders to accelerate decarbonisation across hard-to-abate sectors.
AFID focuses on advancing the deployment of technologies, policies and investment frameworks that enable meaningful emissions reductions in energy- and carbon-intensive industries. By joining the alliance, Holcim aims to contribute its operational expertise in sustainable building materials and construction solutions to policy and industry discussions shaping the UAE’s industrial future.
Holcim said its participation reflects a deliberate emphasis on collaboration with governments and industry peers, ensuring that regulatory frameworks, technology pathways and investment signals are grounded in real-world industrial experience. The company has positioned itself as an active contributor to dialogues that seek to balance ambition with practical implementation.
“Industry decarbonisation requires practical action at scale, supported by the right policy direction. Joining AFID allows Holcim to engage at that intersection, bringing perspective shaped by practical experience to conversations that matter for the UAE’s low-carbon future,” said Ali Said, CEO of Holcim UAE and Oman.
AFID’s work spans several priority areas, including renewables, carbon capture, utilisation and storage (CCUS), circularity, green hydrogen, human capital development and climate-aligned finance. These focus areas closely align with Holcim’s long-term strategy, in which sustainability underpins how the business operates, invests and collaborates across its value chain.
In the UAE, Holcim has been steadily advancing initiatives aimed at reducing the carbon footprint of construction materials, while supporting national climate objectives and industrial competitiveness. Through AFID, the company will be able to engage more closely with decision-makers and industry stakeholders to help shape enabling conditions for large-scale decarbonisation.
Holcim said that contributing to alliance-led initiatives allows it to go beyond individual projects and play a role in building the broader systems required for a low-carbon industrial economy. This includes supporting knowledge sharing, fostering partnerships and helping to accelerate the adoption of emerging technologies across the construction and materials sectors.
By joining AFID, Holcim reinforces its position as a long-term partner committed to advancing sustainable construction in the United Arab Emirates, while contributing to regional and global efforts to decarbonise industry in line with climate targets.
The inaugural IFAT Saudi Arabia aims to accelerate investment in sustainable waste and water infrastructure across the Kingdom. The event will focus on knowledge exchange, policy dialogue, and sector collaboration through a strategic summit and a CPD-certified conference programme.
Taking place from 26-28 January at the Riyadh Front Exhibition & Conference Center, IFAT Saudi Arabia is designed to support national development goals and market readiness. The Summit and conference stages will examine how policy, capital, and technology can enhance waste and water systems, promote circular economy models, and strengthen long-term environmental resilience.
“Strengthening waste management systems is a key priority for supporting environmental protection, operational efficiency and resource recovery,” said Dr. Abdullah Al Sebaei, CEO of the National Center for Waste Management (MWAN). “IFAT Saudi Arabia creates a focused environment for stakeholders to exchange knowledge, review international experience and align on strategic approaches that support the Kingdom’s regulatory direction and circular economy ambitions.”
The invite-only IFAT Saudi Arabia Summit on 26 January will bring together senior government officials, regulators, investors, and industry leaders to discuss the strategic direction of the Kingdom’s waste and water sectors. Sessions will focus on impact investment, public-private partnerships, stakeholder engagement, and future readiness, featuring regional and international case studies and policy insights.
Key discussions include the Leaders Panel, which will assess the evolving waste and water economy in Saudi Arabia, and the Water Security Panel, led by the Saudi Water Authority, focusing on governance and integrated strategies for national water security. “A secure and resilient water sector requires long-term planning, strong governance and close coordination across public and private stakeholders,” said Eng. Mamdooh Alshuaibi, Vice President of Sustainability and Water Sector Services at the Saudi Water Authority. “IFAT Saudi Arabia provides a timely setting to discuss policy priorities, investment frameworks and technical approaches that support efficient water use, system resilience and sustainable service delivery across the Kingdom.”
Complementing the Summit, the CPD-certified conference programme will run across two thematic stages. Orange Stage will focus on waste management, recycling, and circular economy practices, featuring sessions on smart municipal solid waste systems, operational efficiency, and the role of digitalization and cybersecurity. Highlights include a panel marking the launch of the World Bank’s latest report on Solid Waste Management in MENA, in collaboration with the International Solid Waste Association.
Blue Stage, running 27–28 January, will explore water resilience, desalination, reuse, and digital transformation for utilities and industrial users. Sessions include a panel on Middle East water resilience organized by German Water Partnership, a brine mining case study led by NEOM, and discussions on financing and PPP models led by the International Water Association.
By connecting policy, investment, and applied solutions, IFAT Saudi Arabia aims to drive informed decision-making, cross-sector collaboration, and practical delivery across the Kingdom’s environmental ecosystem.
International law firm Addleshaw Goddard has strengthened its Abu Dhabi presence with the relocation of two senior partners and the appointment of a Construction & Engineering specialist, signalling a long-term commitment to supporting the emirate’s strategic priorities in construction, transport, and energy.
Andrew Carter, a Partner in the firm’s Commercial practice with a focus on transport and mobility, relocated to Abu Dhabi in December, while Matthew Williams, Partner and Co-head of Power, Infrastructure Projects & Energy, joined from the UK in early January. The firm has also welcomed Richard Davies as Partner, Construction & Engineering, who will be based in Abu Dhabi.
Carter brings extensive experience advising both public and private sector clients on complex transport, logistics, and mobility projects, contributing to the development of integrated and future-ready transport networks. Recognised in Legal 500 and Best Lawyers International for his work in the transport sector, he said, “The UAE is advancing ambitious transport and mobility initiatives, including the upcoming launch of Etihad Rail passenger services and the large-scale roll-out of autonomous vehicles. Being based here allows us to work more closely with clients shaping the future of infrastructure and movement across the UAE and the wider region.”
Williams adds decades of experience spanning the full lifecycle of energy projects and sector-specific M&A, including conventional power, renewables, and energy transition mandates. He serves as the client relationship partner for several major energy market participants across Europe and the Middle East and has been recognised in the Legal 500 power sector ‘Hall of Fame’ for six consecutive years. Reflecting on his relocation, Williams said, “Energy transition and infrastructure investment are central to Abu Dhabi’s future. Relocating enables us to provide more immediate, strategic support on complex projects and transactions transforming the region’s energy landscape.”
Richard Davies, who joins from another international Abu Dhabi firm, has more than 15 years’ experience advising on construction and engineering projects across the UAE. His work spans rail, air mobility, airports, urban development, district cooling, and desalination, covering both contentious and non-contentious matters. “Abu Dhabi continues to see significant investment across complex infrastructure and development projects. Joining Addleshaw Goddard’s Abu Dhabi office allows me to work closely with clients on the ground, supporting the delivery of major projects across construction and engineering sectors that are critical to the emirate’s long-term growth,” he said.
These moves build on Addleshaw Goddard’s expansion in Abu Dhabi, including the opening of its office in Abu Dhabi Global Market in June 2025, and demonstrate the firm’s strategy to embed senior, sector-led expertise aligned with the emirate’s economic diversification and sustainability ambitions. Robin Hickman, Head of Middle East at the firm, said, “Andrew’s and Matthew’s relocations, along with Richard’s hire, underscore our long-term commitment to Abu Dhabi. By embedding senior sector specialists on the ground, we are well positioned to support clients delivering some of the capital’s most strategically important transport and energy projects and transactions.”
Critical Metals Corp., a critical minerals company headquartered in New York, has signed a non-binding term sheet to form a 50/50 joint venture with Tariq Abdel Hadi Abdullah Al-Qahtani & Brothers Company (TQB), a 75-year-old industrial conglomerate based in Saudi Arabia.
The partnership aims to establish a state-of-the-art rare earth processing facility in the Kingdom, creating a fully integrated mine-to-processing supply chain and securing long-term offtake rights for 25% of the Tanbreez Project’s rare earth concentrate production.
The facility will produce separated rare earth oxides, metals, and downstream products, including magnet-grade materials for aerospace, defense, and advanced industrial applications. All finished materials are planned for shipment to the United States to support the country’s defense industrial complex, strengthening supply chain security for Western-aligned markets.
Tony Sage, Chairman of Critical Metals Corp., said, “This agreement represents a transformational milestone for Critical Metals Corp. By partnering with a leading Saudi Arabian industrial group and securing long-term offtake that brings Tanbreez to 100% committed production, we have effectively de-risked the project’s commercial pathway from mine to market. The establishment of an integrated processing platform in Saudi Arabia not only diversifies global rare earth processing capacity beyond China but also strengthens supply chain security for allied nations across Europe, the Middle East, and beyond. This transaction positions CRML as a cornerstone supplier of critical minerals essential to advanced manufacturing, energy transition technologies, and national security applications for decades to come.”
Under the JV framework, CRML will retain its 50% ownership interest on a carried-interest basis, without issuing equity or incurring debt for the construction of the processing facility. The partnership ensures 100% of Tanbreez production is now under long-term offtake agreements, providing full revenue visibility and supporting allied markets. A jointly governed development committee will oversee engineering, construction, commissioning, and market entry for the processed products.
Abdulmalik Tariq Al-Qahtani, CEO of TQB, commented, “Following the successful official visit of His Royal Highness Prince Mohammed bin Salman to the United States, we are pleased to announce the signing of a Memorandum of Understanding focused on cooperation in the development of critical materials. Critical materials—sourced from strategically important regions including Greenland and other resource-rich jurisdictions—form the foundation of modern technologies across energy, advanced manufacturing, artificial intelligence, defense, and data infrastructure. Securing diversified and resilient supply chains for these materials is essential to long-term technological progress.”
CRML and TQB will now work together to finalise the technical, commercial, and regulatory foundations of the JV, including plant design, development timelines, product specifications, and commercialisation strategy. The initiative is a major step toward diversifying rare earth processing capacity, reducing reliance on China, and strengthening global supply chain resilience.
Once overshadowed by hydrocarbons, the UAE’s manufacturing sector has now become a driving force for innovation, investment, and sustainable growth across the country. Without a doubt, manufacturing is poised to take centre stage in the country’s long-term aspirations for economic growth and resilience.
Various initiatives from the UAE’s visionary leaders all point towards continuously building, enhancing and reinforcing conditions that will further encourage investments and enable industrialisation to thrive and prosper.
Among them is Operation 300bn, the UAE’s national industrial strategy launched in 2021 which aims to more than double the industrial sector’s GDP contribution from AED133 billion in 2021 to AED 300 billion by 2031.
In addition, programmes, projects and initiatives by the Ministry of Industry and Advanced Technology (MoIAT) such as the National In-Country Value Program (ICV), ‘Make it in the Emirates’, the Technology Transformation Program (TTP), and the Industrial Technology Transformation Index (ITTI) have all been designed and geared towards pro-actively pushing forward the UAE’s manufacturing and industrial ambitions.
Clearly, the UAE is well on track on achieving its industrialisation objectives and its relentless pursuit of economic diversification have already produced remarkable results.
In the first quarter of 2025, non-oil GDP grew 5.3% , reaching AED 352 billion, according to the UAE's Ministry of Economy and Tourism (MOET). The ministry also identified manufacturing as the fastest growing economic activity, registering 7.7% growth in Q1 2025.
According to the latest report by Abu Dhabi Customs, Abu Dhabi's non-oil foreign trade grew by 34.7% in H1 2025, reflecting a thriving manufacturing industry and a key source of UAE exports.
Driven by visionary leadership
It is quite evident that the vision of the UAE’s leadership for the future of this great nation is fuelled by a determination to thrive, succeed and lead.
Not only are they aiming and enabling the manufacturing sector to grow, but they also implement a deliberate governmental policy and strategy that focuses on strengthening the adoption of advanced manufacturing, sustainability, and Industry 4.0 technologies including artificial intelligence, the Internet of Things (IoT), and 3D printing.
Over the years, the UAE's manufacturing sector has continuously demonstrated its resilience. In 2022, manufacturing GDP growth surpassed pre-pandemic levels by tallying 8.75% growth.
With Abu Dhabi leading the way with a growth of 9.7% , the emirate even further sharpened its focus on manufacturing with the launch of the Abu Dhabi Industrial Strategy (ADIS) in the same year. As a result, in the first half of 2025, Abu Dhabi's non-oil GDP grew 6.37% year-on-year, according to the Statistics Centre - Abu Dhabi
The attractiveness and pull for foreign investment into the UAE’s manufacturing sector have also remained strong. At the fourth edition of 'Make it in the Emirates', a 122,000-strong participation of delegates from across the world was a clear indication of the global attention to the sector’s growing appeal.
With US$11bn committed to advanced manufacturing over five years, the UAE is sending a clear message: it is open for industrial business, and it is serious about reducing its reliance on oil.
Innovation and sustainability at the core
Recognising the need to catch up with countries with larger and more advanced manufacturing sectors in a globalised market, the UAE is not just building factories – it's building smart factories.
Industry 4.0 technologies are being integrated into production lines, making UAE manufacturing globally competitive. Sustainability is also a priority, with circular economy models becoming standard practice.
Solar-powered facilities take advantage of the abundant sunshine, while water recycling systems ensure efficient use of water in a desert climate.
These are supported by the MoIAT's ITTI, which measures the digital maturity and sustainability practices of factories, provides a roadmap for their digital transformation and encourages the adoption of Industry 4.0 solutions and sustainability best practices.
Turning challenges into opportunities
While there are indeed challenges in the UAE’s journey towards economic diversification and industrialisation, the country’s leaders have cleverly manoeuvred around them and have instead focused on capitalising on the opportunities presented by these challenges. An uneven manufacturing growth among the emirates is being addressed by the federal government through Operation 300bn, with a focus on equitable development.
Among its goals is to create 13,500 new industrial facilities and 25,000 specialised jobs, many of which are being directed toward less industrialised regions.
For instance, MoIAT is working to ensure that Northern Emirates like Ras Al Khaimah, Fujairah and Umm Al Quwain benefit from industrial expansion through tailored support and infrastructure upgrades.
Additionally, the ICV program provides incentives for companies sourcing locally, further benefiting the economy. These initiatives create numerous opportunities for businesses and individuals to widen their reach in the burgeoning manufacturing sector.
In line with the rapid adoption of Industry 4.0 technologies, the UAE is also strengthening partnerships among industry, academia and various vocational training programmes, in collaboration with global tech companies, to help bridge any skills gap and ensure a seamless transfer of the latest technological knowledge to the UAE workforce.
Today, the UAE’s manufacturing sector stands at a pivotal juncture. With the UAE's emphasis on attracting investments and prioritising inclusivity, innovation, and sustainability, the country is laying the foundation for long-term industrial leadership.
Alongside policy support, the UAE's strategic location and rapidly improving infrastructure position it as a rising global manufacturing hub.
Manufacturing is no longer just a supporting act in the UAE’s economic story. It’s now a lead character that plays a vital role in shaping a resilient, innovative, and sustainable future for the country.
By Noritsugu Mifune, CEO, Al Gharbia Pipe Company
UAE-based fuel technology company Fuelre4m has announced new results showing its fuel treatment can deliver consistent fuel efficiency and emissions reductions across buses, trucks, and heavy equipment operating in real-world conditions.
Independent testing led by the National Technical University of Athens (NTUA), one of Europe’s leading engineering and applied sciences universities, evaluated Fuelre4m’s technology under tightly controlled laboratory conditions using a commercial diesel engine running on standard B10 biodiesel. The tests recorded 3.5–6.7% lower fuel consumption at identical engine speed and mechanical torque, alongside consistent efficiency improvements of 15–21% in the dominant mid-load operating range of approximately 1,400–1,550 RPM.
“The laboratory result establishes a conservative baseline under fixed torque, while real-world operation allows the same efficiency improvement to reduce torque demand, improve gear behaviour, and compound over time, resulting in larger total fuel savings across a complete duty cycle. Crucially, the only variable introduced during testing was the treatment of the fuel itself, with no changes to engine hardware, electronic calibration, operating limits, or fuel specification,” Fuelre4m said.
The NTUA laboratory findings are now being reinforced by repeatable real-world trials across UAE transport and industrial fleets. These include city and intercity buses operating on Dubai service corridors, mixed fleets incorporating VDL and King Long buses, and heavy trucks and off-highway equipment operating under high-load conditions. Once sufficient fuel contact time is achieved, measured fuel efficiency improvements frequently match or exceed laboratory results. Fixed-route trials on UAE buses show directional fuel consumption reductions of approximately 14–17%, with the strongest improvements consistently appearing in the mid-RPM “working bands” that dominate urban and intercity duty cycles.
Trials were conducted across mixed fleets spanning multiple manufacturers, engine sizes, and emission standards, confirming that the benefits are not limited to a single platform or technology generation. No adverse impacts were observed on drivability, engine temperatures, or aftertreatment systems. Quarry and heavy-equipment trials, including large off-highway haul trucks, demonstrated reduced fuel consumed per unit of work, with several recording double-digit efficiency improvements while maintaining or increasing productivity.
Commenting on the findings, George Papalambrou, Associate Professor of Control Systems at NTUA, who oversaw the independent testing, said, “We were genuinely surprised by the consistency and magnitude of the mid-range efficiency improvements. The results were not isolated to a single operating point and were observed under multiple control regimes. This is a positive development not just for one sector, but potentially for all industries relying on internal combustion engines, including shipping and maritime transport.”
Rob Mortimer, CEO of Fuelre4m, said, “For decades, the industry has optimised engines around the assumption that fuel behaviour is fixed. These results show that when you improve how fuel behaves, efficiency and emissions improve immediately, using the engines already operating across the UAE today.”
Fuelre4m is expanding controlled in-service validation programmes across the UAE in collaboration with fleet operators, government entities, and industrial partners. These programmes will focus on high-utilisation routes, long-duration performance validation, and quantified emissions reduction under representative operating conditions. Further independent testing using fully instrumented dynamometer facilities is also planned to extend validation into transient operation and regulatory-grade certification environments.
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