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Manufacturing

Middle East manufacturers are leading the way in AI adoption, according to the Rockwell Automation report.

According to Rockwell Automation’s newly-issued 10th annual State of Smart Manufacturing Report, 98% of manufacturing companies in the Middle East are using or planning to use generative AI, the highest rate globally, with 96% committed to broader AI/ML technologies

The study is based on feedback from more than 1,500 manufacturing leaders globally, including representation from the oil and gas (7%), renewables and energy transition (9%) and chemicals (4%) sectors.

The study highlights that Middle East companies are leading the way in deploying AI to improve operations and meet business goals, shifting from broad digital expansion to focused strategies, to achieve measurable outcomes in efficiency, cybersecurity and sustainability.

"Middle East manufacturers are not just experimenting with smart manufacturing technologies; they are applying them to address real operational challenges," said Ediz Eren, regional vice president, Middle East, Türkiye, and Africa, Rockwell Automation. "From cyber resilience to ESG performance and workforce engagement, the data shows a shift toward outcome-driven digitalisation."

Practical use cases

Manufacturers in the region are focusing on practical use cases for AI, with 68% planning to use AI for quality control, 61% for cybersecurity, and 46% for energy management over the next 12 months, significantly above European benchmarks, and 42% applying AI/ML to monitor sustainability targets.

This is paying off in terms of ROI, with 10% of manufacturers citing GenAI as their top-returning technology, and 15% saying the same of cybersecurity platforms.

Cybersecurity has risen up the agenda for manufacturing firms, with 98% of companies having either invested in or planning to invest in cybersecurity platforms, and 44% deploying countermeasures to mitigate rising threats, the highest rate globally. Thirty-six percent now view cyber risk as their top external concern, up from 27% last year.

Technology is also reshaping the workforce, with  43% of regional respondents now prioritising upskilling, up 14% year-on-year and significantly ahead of the European average.

Emirates Global Aluminium, the world's largest 'premium aluminium' producer, stated that it has signed a deal with Ghana Integrated Aluminium Development Corporation (GIADEC) to investigate bauxite-related project options in Ghana.

Ghana has over 900 million tonnes of bauxite reserves in one main and two smaller recognised deposits. Ghana now produces approximately 1.5 million tonnes of bauxite per year, with grade resources enabling for further development. Bauxite is the mineral from which aluminium is produced.

Under the deal, EGA and GIADEC will investigate the possibility of long-term bauxite offtake agreements as well as collaboration on rail and port infrastructure to increase production.

Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said, “This aligns well with EGA’s goal of diversifying our sources of upstream supply as we grow our metal production, including in the US as we progress our plans to develop a greenfield primary aluminium production plant as announced during the recent state visit to the UAE of President Trump. EGA is looking to double its bauxite production in the next few years and exploring multiple opportunities worldwide, and Ghana is amongst them.”

The industrial firm has recorded no cases of heat-related illnesses since 2021. (Image source: EGA)

Emirates Global Aluminium (EGA)'s annual 'Beat the Heat' programme has introduced wearable tech for workers that enhances location services, connectivity and real-time data to reduce the risk of heat-related illness

The industrial firm has recorded no cases of heat-related illnesses since 2021, yet continues its annual 'Beat the Heat' programme. CEO Abdulnasser Bin Kalban said the programme strives "to engage everyone in ensuring we have zero cases of heat-related illness at our company, and together we have a long track record of success.

"Technology has the potential to make our Beat the Heat programme even more effective."

The wearable tech deployment was joined by new full-body cooling units at EGA medical centres and operational areas at several plants across Jebel Ali and Al Taweelah.

2024 was the third consecutive summer of no recorded heat-related illnesses, with the last two incidents recovering within hours of treatment in summer 2021.

In 2024, the UAE exported 350,000 tonnes of aluminium to the United States

A report by Betterhomes suggests that the base 10% tariffs on the UAE levied by the Trump administration are unlikely to affect UAE industries 

While the 25% tariffs imposed by the US on these key materials have created global uncertainty, Dubai’s diversified economy, robust trade infrastructure, and status as a re-export hub significantly cushion it from potential negative impacts.

In 2024, the UAE exported 350,000 tonnes of aluminium to the United States, making it the second-largest aluminium supplier to the American market. However, this relationship is unlikely to be substantially undermined by the tariffs. Unlike Canada and Mexico, the UAE has not been exempted from duties. Yet, the ongoing political engagement between the US and Gulf states signals room for bilateral negotiations, especially as the US looks to reduce dependence on Canadian imports.

Strategically, this opens a potential opportunity for the UAE to expand its aluminium exports to the US. Should a bilateral trade deal materialise, it could not only secure preferential access for Emirati aluminium but also strengthen the UAE’s role in global metal supply chains, particularly in sectors like aerospace, automotive, and defence.

Besides, the UAE’s domestic aluminium industry remains strong and well-positioned. With the US announcing a US$1.4tr investment in its own aluminium smelting capacity, future demand could shift more towards domestic consumption, but the high-quality aluminium produced in the UAE will likely remain competitive.

On the steel front, the US tariffs may trigger cost increases in international markets, but Dubai’s construction sector seems to be protected for now. As the UAE is not directly subject to reciprocal import duties on construction materials, price volatility will more likely be driven by currency fluctuations and shipping costs rather than trade restrictions. Moreover, Dubai’s construction pipeline remains vigorous, with more than 3,500 real estate and infrastructure projects underway.

A diversified economy

Dubai’s ongoing expansion in logistics and infrastructure, backed by a substantial government budget allocation (around AED 2.6 billion for transportation and logistics this year) supports sustained activity in the construction sector. 

The city’s construction boom is not solely reliant on imported steel and aluminium from the US, as it sources materials from a diversified group of partners across Asia, Europe, and the broader MENA region. This geographical diversification further insulates Dubai from direct supply shocks related to US trade policies.

Another crucial factor is Dubai’s emergence as a global trade and transshipment hub. Free zones like Jebel Ali provide platforms for rerouting goods to avoid tariffs, enabling companies to adapt to shifting trade dynamics. This resilience reinforces Dubai’s attractiveness to investors and manufacturers seeking stability amidst geopolitical unpredictability.

Real estate continues to thrive. Despite macroeconomic pressures, April 2025 alone recorded AED 46 billion in real estate transactions, reflecting a 23% month-on-month surge. 

Betterhomes reports that interest from US and Chinese investors rose sharply following the implementation of tariffs, with website traffic from these regions jumping by 60%. This renewed interest highlights how instability in one part of the world can enhance Dubai’s appeal as a stable, strategically located destination for capital investment.

While non-oil GDP in the UAE may slow down due to global trade turbulence, government policies aimed at diversification and innovation are already mitigating such risks. The Dubai Real Estate Strategy 2033 and the aim to double foreign direct investment to US$65bn by 2031 across sectors such as logistics, finance, and renewable energy show the country’s economic resilience.

Microsoft UAE is playing a crucial role in this digital transformation

The UAE is rapidly emerging as a global hub for artificial intelligence innovation, with industries leveraging AI tools to revolutionise operations. A panel session at Make It In The Emirates in Abu Dhabi discussed exactly this.

In the defense sector, Edge Group is pioneering AI-powered transformations. Dr. Chaouki Kasmi, president of technology and innovation, highlighted their approach.

“We are bringing revolutionary AI applications in our products, including space situational awareness, AI-powered sensors, electronic systems, and autonomous platforms,” he said.

The group is not just implementing AI, but fundamentally rethinking their operational model through intelligent technologies.

Microsoft UAE is playing a crucial role in this digital transformation. Maitha Al Suwaidi, chief operating officer at Microsoft UAE, shared compelling examples of AI applications across industries.

In healthcare, Abu Dhabi Health developed a patient assistant that integrates medical records and enables seamless booking across medical facilities. In manufacturing, Emirates Global Aluminum implemented a digital platform using Microsoft Azure services, augmenting AI across 150 use cases and earning recognition from the World Economic Forum.

Venture One, through its AI 71 initiative, is developing specialised vertical AI solutions targeting specific industry challenges. Reda Nidhaku, the company’s acting CEO explained their approach, focusing on "agentic AI that augments employees" and creating tools for specific sectors.

In construction, they collaborated with the Department of Municipalities and Transport to automate permitting processes, reducing weeks-long compliance checks to instant evaluations.

In healthcare, they're testing an AI Doctor assistant and developing solutions to streamline patient discharge and insurance claim processes.

Looking to the future

The investment sector is also experiencing AI-driven transformation. Mubadala has integrated Maya, an AI companion, into its investment committee process. The AI tool helps filter investment opportunities, analyze macroeconomic data, and provide recommendations, enhancing decision-making without replacing human expertise.

Thomas Pramotedham, the CEO of Presight, emphasised the UAE's unique ecosystem, noting that the country's leadership vision of creating an "AI-native government" has been instrumental in attracting technological innovation.

The ecosystem supports companies in developing, testing, and exporting AI solutions globally.
These AI tools are not just technological experiments but strategic implementations driving efficiency, innovation, and economic diversification.

The UAE's approach combines robust infrastructure, forward-thinking policies, and a commitment to attracting global AI talent.

Dr. Kasmi summarised the sentiment perfectly. “We are a technology company that happens to operate in the defense sector...rethinking our operating model with revolutionary technologies."

As industries continue to integrate AI, the UAE is positioning itself as a global leader in intelligent technology adoption, demonstrating how strategic investment and ecosystem support can transform traditional sectors through artificial intelligence.

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