UN Report: UAE’s industrial sector is most competitive in the Arab World
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UN Report: UAE’s industrial sector is most competitive in the Arab World


The United Nations Industrial Development Organisation (UNIDO)’s report in 2021 is out. Here is how UAE had performed with respect to different performance measures as per this report that had taken into account the performance of 152 countries.

  • On basis of the Competitive Industrial Performance Index (CIP) the top ranked nations are:
  1. Germany
  2. China
  3. US
  4. Japan
  5. South Korea

UAE had climbed 5 places since 2020 and ranked 30th, the highest rank achieved by any Arab nation. UAE’s rank places the country in third position in the Middle East region. The first two positions in Middle East are held by Turkey and Israel.

  • On basis of Manufacturing Exports per capita:

UAE has ranked 17th after climbing 14 spots from 31st rank of last year.

  • Based on Total manufacturing Exports:

UAE had gone up to 32nd position.

  • On the basis of share of its manufactured goods in its total export mix:

UAE moved 8 positions from 2020’s rank of 115 to 107.

  • Based on Manufacturing Value added per Capita:

UAE ranked 28th.


The three dimensions that the UNIDO assesses to gauge performance of industrial sector are:

  • Production and export of manufactured goods capacity
  • Technological growth and upgrade
  • Impact of industrial development on the world.

These three dimensions are in turn divided into eight performance indicators.

Steps taken by UN index to monitor the development of UAE’s Industrial Sector:

  • Identify key features of industrial development model
  • Link the key features to the national 2014 agenda and UAE Vision 2021.

The reasons for the sustainable growth in the industrial sector of UAE as per the UN Report are:

  • UAE is successfully working towards a knowledge-based economy.
  • UAE government is focusing more on science-based education.
  • Incorporation of advanced state-of-the-art technology in the industrial sector.
  • The government of UAE is encouraging innovation in every aspect of business.
  • UAE government is deftly balancing industrial development and environmental sustainability.

In July 2020 the Ministry of Industry and Advanced Technology (MoIAT) was established. Dr Sultan Al Jaber, the UAE’s Minister of Industry and Advanced Technology, said-

“The UAE is on its way to becoming a global destination for pioneering future industries, enhancing its attractiveness for investments, and incentivising advanced technology,” The Minister also added that 4th Industrial Revolution solutions and advanced technology are being used to develop an innovative industrial ecosystem.

Out of the eight determining indicators, UAE had enhanced performance in four. Currently 133 billion AED is UAE’s industrial sector’s contribution to the GDP. Launched in early 2021, “Operation 300bn” has the goal to support 13500 industrial companies by 2031 thus doubling the industrial sector’s contribution to GDP to 300 billion.

The competitive and growing industrial sector of UAE makes UAE the ideal place to set-up a new company.

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