The manufacturing sector in the United Arab Emirates, accounting for 15 per cent of gross domestic product, is set to become the main engine of the country’s next economic phase, according to entrepreneur Mohamed Alabbar, founder of Emaar Properties and Noon. com and chairman of Eagle Hills. Speaking at the eighth Sharjah Investment Forum–World Investment Conference 2025, he emphasised that while real estate contributes around 12 per cent of GDP, manufacturing has overtaken that figure and offers far greater growth potential.
The event, held under the theme “Transforming Our World: Investing for a Resilient and Sustainable Future,” gathered more than 10,000 participants from 142 countries, over 130 speakers and more than 160 sessions, offering a global investment forum with a manufacturing focus. Alabbar addressed the audience in a fireside chat titled “Vision, Venture, Value: Shaping the Region Through Leadership,” moderated by entrepreneur Kris Fade and witnessed by Sheikha Bodour bint Sultan Al Qasimi, chairperson of the Sharjah Investment and Development Authority.
Alabbar urged entrepreneurs to “look into manufacturing seriously,” advising them: “Start small; buy a 3D printer for your house — it’s not complicated. Do it with honesty and make a good product.” He framed manufacturing as accessible and discipline-driven, rather than only for large-scale investment. He also underscored the values of quality and integrity over marketing hype: “If my product is good, it will market itself… Your product is your name, your family’s name, your country’s name.”
Industry data at the forum supports the messaging. One panel, titled “Transforming Industries Through Smart Manufacturing,” delivered evidence that the UAE’s manufacturing output in the first quarter of the year grew by 7.7 per cent, contributing 13.4 per cent of non-oil GDP, driven by adoption of Industry 4.0 technologies such as robotics, IoT and advanced analytics. Speakers noted that while the manufacturing share has been elevated previously, the push to integrate high-value sectors and digital capabilities is accelerating the transformation.
This shift aligns with broader national strategy. The UAE government’s “Operation 300 bn” industrial drive aims to boost industrial output to AED 300 billion by 2031, while the “Make it in the Emirates” initiative encourages companies to manufacture locally instead of relying on imports. The favourable policy environment, improved infrastructure and growing investor interest in near-shoring also contribute to the manufacturing push.
Yet challenges remain. Experts at the forum acknowledged that while infrastructure and policy are advancing, workforce reskilling, cybersecurity readiness and supply‐chain resilience still lag in some manufacturing sub-sectors. One panel member noted that machines alone will not deliver productivity; investment in people must go alongside technology. Additionally, although the manufacturing sector is growing rapidly, its share of total GDP remains smaller than services and hydrocarbon-related sectors, meaning the transition will take sustained effort and coordination.
Alabbar’s remarks reflect the view that manufacturing is no longer just a fallback for diversification but a strategic growth pillar. Because real estate has long dominated UAE investments, his highlighting of manufacturing as a higher-share contributor signals a shift in national economic narrative. By supporting “small” manufacturing efforts and encouraging disciplined execution, he indicates that the next growth wave may come from distributed, agile production rather than purely large-scale industrial projects.
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