Abu Dhabi Manufacturing Sector Sees 53% Growth in 2025
📋 Key Takeaway: The Abu Dhabi manufacturing sector experienced significant growth in 2025, with a 53% increase in operational establishments, contributing AED340 million to the non-oil GDP.
Significant Growth in Manufacturing Establishments
The Abu Dhabi manufacturing sector recorded robust growth in 2025, with 115 industrial establishments moving to full operation. This marks a 53% increase from the 75 establishments operational in 2024, underscoring the emirate’s emerging status as a regional industrial hub. This expansion is largely attributed to the Abu Dhabi Industrial Strategy (ADIS), which aims to bolster the manufacturing sector’s contribution to economic diversification.
According to data from the Abu Dhabi Department of Economic Development (ADDED), the manufacturing sector contributed approximately AED340 million ($92.6 million) to the non-oil GDP in 2025. This reflects the growing importance of the sector in the emirate’s overall economic framework, particularly as the UAE seeks to diversify its economy away from oil dependency.
Increased Licensing Activity and Compliance Measures
The data reveals a surge in licensing activities across all stages of the manufacturing process, with 411 new industrial licenses issued in 2025, a 20% increase from 342 in 2024. Additionally, the number of licenses transitioning into the construction phase rose by 37% to 206, compared to 150 in the previous year, indicating a strong demand for industrial development in the region.
Hamad Sayah Al Mazrouei, Undersecretary of ADDED, emphasized the sector’s critical role in Abu Dhabi’s economic strategies. He noted that the ADIS aligns with national priorities aimed at enhancing supply chains, boosting local manufacturing capacity, and attracting global industrial leaders. The initiative is part of broader efforts, including the ‘Operation 300bn’ initiative and the UAE’s Net Zero 2050 Strategy.
Regulatory Enhancements and Compliance Initiatives
The Abu Dhabi Registration Authority (ADRA), which oversees regulatory compliance, conducted 1,299 inspection visits in 2025, alongside 828 planned inspections. These efforts are aimed at ensuring that industrial facilities meet operational and regulatory standards prior to becoming fully operational. Notably, 35% of industrial licenses transitioned into production with the support of technical audit teams, reflecting a commitment to maintaining high standards in the sector.
Furthermore, the number of establishments participating in the industrial self-compliance program increased by 11% to 160, while the conversion of commercial licenses to industrial licenses rose by 33% to 16. These developments illustrate Abu Dhabi’s strategy to balance industrial growth with effective governance and transparency, positioning the emirate as a competitive destination for both local and global industrial investors.
Frequently Asked Questions
What contributed to the growth of Abu Dhabi’s manufacturing sector in 2025?
The growth was driven by the Abu Dhabi Industrial Strategy (ADIS) and increased licensing activity.
How much did the manufacturing sector contribute to the non-oil GDP?
The sector contributed approximately AED340 million ($92.6 million) to the non-oil GDP in 2025.
What measures are being taken to ensure compliance in the industrial sector?
ADRA conducted 1,299 inspections to ensure compliance with regulations in the manufacturing sector.
How many new industrial licenses were issued in 2025?
A total of 411 new industrial licenses were issued in 2025, marking a 20% increase from the previous year.
What is the significance of the ADIS for Abu Dhabi’s economy?
ADIS aims to enhance supply chains, increase local manufacturing capacity, and attract global industrial leaders, supporting economic diversification.
