ADDED releases new guide to attract investment in transportation sector

By Arya M Nair, Official Reporter
  • Follow author on
ADDED new guide to invest in transportation sector

The Abu Dhabi Department of Economic Development (ADDED) has issued a new guide outlining investment opportunities with high growth potential in Abu Dhabi’s transportation industries.

Released as part of the Abu Dhabi Channel Partners program, the guide allows domestic and international players to invest in a sector projected to reach a combined market size of AED 11.04 billion ($3 billion) by 2027.

Ahmed Jasim Al Zaabi, Chairman of ADDED, announced the new guide for investment opportunities in transportation at DRIFTx, the international thought-leadership and exhibition platform in Abu Dhabi that is dedicated to advancing the future of smart and autonomous mobility across air, land, and sea.

DRIFTx is supported by the Abu Dhabi Investment Office (ADIO), which launched Smart and Autonomous Vehicle Industry (SAVI) cluster in 2023 to set new standards for global transportation and mobility.

Ahmed Jassim Al Zaabi_ADDED unveils investment opportunities in transportation sector
Ahmed Jasim Al Zaabi
Chairman – ADDED

“These high-growth investment opportunities in the transportation industries will play an important role in strengthening the Emirate’s industrial landscape. ADIS is supporting our transformation into a diversified, smart, and sustainable economy, underscoring our vision of establishing Abu Dhabi as a global technological hub and innovation centre for manufacturing.”

Al Zaabi said that, “In 2023, the value of Abu Dhabi’s manufacturing sector rose to $27.5 billion, contributing 8.8 percent to the total GDP and 16.5 percent to non-oil GDP, which grew by 9.1 percent to $166 billion. The transportation sector’s potential for growth will play a crucial role in the realization of Abu Dhabi’s ambitious targets.”

“We are committed to further diversifying the economy by focusing on new and emerging sectors, with a special emphasis on certain manufacturing sectors, and utilizing innovative tools across different sectors. ADIS is providing ample opportunities for partnerships, access to funding, and attractive investment prospects for both local and international investors,” Al Zaabi added.

Industrial Investment opportunities in transportation include the development, manufacturing and commercialization of commercial drones, electric vehicle chargers, automotive battery systems, aircraft landing gears, e-scooters, and automotive tyres. The compound annual growth rate (CAGR) of these opportunities is projected to range between 5.7 percent for conventional industries, to 9.4 percent for high-growth ones, and up to 31.5 percent for disruptive industries in transportation.

The Abu Dhabi Channel Partners program was launched in 2023 as an Abu Dhabi Industrial Strategy (ADIS) initiative to enhance the Emirate’s industrial ecosystem by providing detailed guides of investment opportunities that address the needs of key players and investors.

The program presents 100 investment opportunities, with a combined market value of AED 123.3 billion ($33.5 billion) in the 7 manufacturing subsectors targeted by ADIS, namely food processing, pharmaceuticals, chemicals, electrical, electronics, machineries and equipment, and transportation.

Abu Dhabi has built an investment-friendly ecosystem that supports innovation-driven businesses by providing access to partnerships, funding, and opportunities within non-oil sectors, and by presenting attractive investment and partnership prospects for both local and international investors.

The Industrial Development Bureau (IDB), ADDED’s arm to develop and regulate the industrial sector, has been active in launching initiatives, and in attracting global players to Abu Dhabi to achieve the objectives of ADIS.

Related | ADDED unites with Hub71 to drive innovation in Abu Dhabi