The United Arab Emirates has launched a 1 billion dirham ($272 million) National Industrial Resilience Fund aimed at strengthening domestic manufacturing, securing supply chains, and expanding the use of artificial intelligence across production processes. The decision was approved during a cabinet meeting chaired by Sheikh Mohammed bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
Strategic Objectives
The fund is designed to enhance industrial readiness for vital products, ensure continuity of supply, and strengthen economic security. It will support the expansion of local manufacturing, the development of strategic reserves, and the advancement of industrial value chains across priority sectors. The initiative aligns with the UAE's accelerated efforts toward economic diversification, a cornerstone of its long-term strategy to reduce reliance on hydrocarbons.
Mandatory Local Content
Sheikh Mohammed bin Rashid Al-Maktoum stated: "Today, we took decisions to accelerate the UAE's industrial growth. We are launching a 1 billion dirham fund to strengthen resilience, expand local production, secure supply chains, and scale the use of artificial intelligence across production and operations." He added that the National In-Country Value Programme has been made mandatory across all government entities and national companies, with a target to fully localize more than 5,000 critical products.
The fund will leverage AI in forecasting and risk management, further strengthening economic security. In parallel, the cabinet approved a policy to boost the presence of locally manufactured goods across retail outlets and digital platforms, aimed at increasing consumer awareness and ensuring stable supply.
Industry Response
Sultan bin Ahmed Al-Jaber, Minister of Industry and Advanced Technology, commented that the decisions reflect a strategy to build a "more resilient and sustainable national industrial model" by strengthening supply chains and directing demand toward domestic products. The initiative has drawn positive responses from industry observers, who highlighted its focus on localization, AI integration, and long-term resilience.
Abdulla Al-Hamed, Chairman of the UAE's National Media Authority, posted on X that the Industrial Resilience Fund represents strategic capital that will accelerate the localization of vital industries and secure supply chains. "The UAE is redefining competitiveness through artificial intelligence, which is now the vital backbone of production and planning processes, transforming national factories into smart platforms that compete globally," he wrote.
This development follows Dubai's decision in March to approve a $272.2 million support package to ease financial pressures and support businesses and households amid heightened tensions linked to the Iran war. The new fund underscores the UAE's commitment to building a robust and self-sufficient industrial base.
