RIYADH: The UAE has launched a 1 billion dirham ($272 million) National Industrial Resilience Fund to strengthen domestic manufacturing, secure supply chains and expand the use of artificial intelligence across production.
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 the ruler of Dubai.
The announcement aligns with the country’s accelerated efforts toward economic diversification, a cornerstone of its long-term strategy to reduce reliance on hydrocarbons.
This comes on the back of 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.
In a statement, Al-Maktoum said: “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: “We made the National In-Country Value Programme mandatory across all government entities and national companies, and strengthened the presence of UAE-made products. Our target is clear. Fully localize more than 5,000 critical products.”
The fund is also expected to enhance industrial readiness for vital products, ensure continuity of supply, and strengthen economic security, while leveraging AI in forecasting and risk management.
It will also support the expansion of local manufacturing, the development of strategic reserves, and the advancement of industrial value chains across priority sectors.
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.
Commenting on the measures, Sultan bin Ahmed Al-Jaber, minister of industry and advanced technology, said 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 a positive response 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,” posted Al-Hamed.
