Abu Dhabi, UAE – The United Arab Emirates (UAE) has secured the top spot in the Arab region and risen to 29th globally in the United Nations Industrial Development Organization’s (UNIDO) Competitive Industrial Performance Index (CIP).
The index, which evaluates 153 countries, assesses national industrial performance and competitiveness on a global scale.
The CIP measures various indicators, including technological capabilities, innovation, productivity, and trade performance, to compare the strength of industrial competitiveness within nations. Climbing two spots from the previous year’s ranking showcases its role as a regional and global player in the industrial sector.
The UAE has achieved significant progress in key areas. The country climbed from 124th to 115th in Industrial Export Quality, from 98th to 95th in Share of Manufacturing Value Added in GDP, from 110th to 97th in Share of Manufacturing Exports in Total Exports, and from 17th to 14th in Manufacturing Export per capita indices.
“The UAE leadership’s vision and directives have laid solid foundations to achieve sustainable economic development. The country has made qualitative leaps in industrial development and has been able to strengthen its strategic position as it moves towards achieving its industrial goals through a set of competitive advantages that enhance its position as a global hub for manufacturing and innovation,” Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said.
“The recent UNIDO ranking confirms the UAE’s leadership in industry and advanced technology and highlights the country’s industrial trajectory. It also reflects MoIAT’s commitment to stimulating sustainable industrial growth and enhancing investment attractiveness as well as regional and international competitiveness through deploying advanced technologies and solutions of the Fourth Industrial Revolution,” Al Jaber added.
The UAE’s industrial sector has contributed AED 180 billion ($49 billion) to GDP last year. Non-oil industrial exports have also witnessed significant growth, reaching over AED 170 billion ($46 billion) in 2022.
A primary driving force behind this industrial growth is the National In-Country Value Program, which has seen six new entities join in 2022. The program has redirected AED 53 billion ($14.4 billion) into the economy, registering a substantial 25 percent increase from the previous year and creating job opportunities for nearly 2,000 UAE nationals.
Another key factor contributing to the country’s industrial development is the Technology Transformation Program (TTP). This program aims to boost technological product exports by approximately AED 15 billion ($4.1 billion) annually, adding AED 110 billion ($30 billion) to GDP and driving AED 11 billion ($2.9 billion) in technology investments each year. The TTP’s automation efforts are expected to increase industrial productivity by approximately AED 15 billion ($4.1 billion) annually.