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Manufacturing

Noritsugu Mifune, CEO, Al Gharbia Pipe Company. (Image source: Al Gharbia Pipe Company)

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

Jimmy Joseph, director of GDS Middle East. (Image source: GDS Middle East)

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.”

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.

A new report from management consultancy Arthur D. Little warns that rising product portfolio complexity is quietly eroding profitability in the manufacturing sector, constraining digital growth, and limiting operational flexibility.

The study, Rise of Complexity in Manufacturing, highlights that companies must take decisive action to simplify their offerings and leverage modularisation to stay competitive.

“Unchecked complexity is a silent profitability killer,” the report states. “With resources limited and markets increasingly commoditised, companies must reduce product portfolio complexity to drive profitability and innovation.”

Manufacturers often expand product variants to meet customer demand, but without systematic portfolio pruning, these efforts generate hidden costs. Non-customer-facing complexity such as outdated products, excessive SKUs, and intricate internal processes can slow development, reduce scalability, and impede time to market.

The report identifies four key challenges for manufacturers: maintaining profitability amid market commoditisation, differentiating through digital solutions, ensuring supply chain resilience, and balancing legacy systems with emerging technologies such as new materials, battery-powered engines, or alternative fuels.

Arthur D. Little recommends a data-driven approach to complexity, starting with measuring the cost of complexity (CoC) across product lines and functions. A monetary proxy for CoC can capture inefficiencies in development, manufacturing, warehousing, and support, helping firms identify underperforming products for phaseout.

Strategic modularisation is highlighted as a crucial tool for managing complexity. By designing standardised, interchangeable product modules, manufacturers can simplify portfolios, accelerate time to market, and reduce costs while enabling cost-effective customisation.

The report cites Electrolux, which cut component numbers by 40% and reduced development time by 30% through modular design, and Siemens, which applied modularity to its industrial automation systems, reducing design time by 40% and improving scalability.

Arthur D. Little stresses that complexity reduction requires more than technical solutions: it demands cross-functional coordination, strong governance, and a cultural shift away from short-term gains. Companies must embed modular principles in product development, eliminate low-performing products, and ensure that both hardware and software systems are designed with simplicity in mind.

“Reducing product portfolio complexity is not a technical fix — it is a strategic transformation,” the report concludes. “By making complexity measurable, pruning underperforming products, and embedding modular design, manufacturers can release trapped value, improve speed to market, and build more resilient operations.”

The consultancy urges manufacturers to act decisively now, turning awareness of complexity into structured strategies for long-term profitability and innovation.

Achilles Information Ltd has signed a Memorandum of Understanding (MoU) with the Ministry of Industry and Mineral Resources, marking a key step in supporting Saudi Arabia’s industrial sustainability goals.

The agreement, signed in the presence of senior government and industry representatives, establishes a partnership via a newly formed non-governmental organisation, SIDAM, to conduct ESG and sustainability assessments across the Kingdom’s manufacturing sector. Dr. Ahmed Alshehri signed on behalf of SIDAM, while Katie Ferrier represented Achilles.

Achilles was selected from an initial shortlist of ten organisations for its global expertise in supply chain risk, ESG performance, and sustainability assurance. The collaboration is designed to help Saudi factories strengthen ESG practices, improve transparency, and align sustainability performance with national industrial objectives, contributing to broader efforts to enhance the competitiveness and resilience of the manufacturing sector under Vision 2030.

“This MoU reflects growing recognition that ESG performance and supply chain transparency are now fundamental to industrial competitiveness,” said Katie Ferrier, regional director UKI & MEA at Achilles. “We are proud to support this initiative and to contribute our global experience to Saudi Arabia’s manufacturing ecosystem.”

The partnership gives Achilles a platform to support responsible growth across the Kingdom’s industrial base and promotes regional collaboration on sustainability standards. It comes amid increasing momentum across the Middle East for ESG-driven industrial development, with governments and manufacturers prioritising data-led approaches to sustainability, risk management, and supplier assurance.

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