UAE ranks 30th in the most competitive industrial sector globally; UN ranking

By Arya M Nair, Official Reporter
  • Follow author on
Export Industry
Representational image

The UAE’s industrial sector is the most competitive in the Arab world, according to the United Nations Industrial Organization’s (UNIDO) Competitive Industrial Performance Index (CIP) report for 2021 in which the country ranked 30th out of 152 nations.

The UAE has climbed five places in the UNIDO CIP since 2020 and nine places since 2017, proving the competitiveness of the country’s industrial sector and business ecosystem, in line with the National Strategy for Industry and Advanced Technology, Operation 300bn.

By 2031, the UAE aims to double the industrial sector’s contribution to $81.7 billion to the national gross domestic product from $36.2 billion currently. The strategy, called “Operation 300bn,” was unveiled earlier this year with the goal of supporting 13,500 industrial companies over the next ten years.

According to the UN report, the UAE has achieved sustainable growth in the industrial sector through incorporating advanced technology, fostering science-based education, combining industrial advancement with environmental sustainability, and stimulating innovation.

Dr. Sultan bin Ahmed Al Jaber
Dr. Sultan bin Ahmed Al Jaber
Minister of Industry and Advanced Technology

“UNIDO’s report reaffirms the UAE’s global reputation for developing an innovative industrial ecosystem underpinned by advanced technologies and Fourth Industrial Revolution solutions. Our rapid advances as a global industrial pioneer is a great testament to the foundations laid by our leadership, who have paved the way for dynamic and sustainable economic growth over the next fifty years, and beyond.” 

Mr. Al Jaber also added that UNIDO’s CIP tracked the progress of the UAE’s industrial sector by identifying essential elements of the country’s industrial development model and linking it to the UAE Vision 2021 and the 2014 National Agenda. The UAE’s Vision and Agenda aim to develop a knowledge-based economy and assist the country in improving its global rankings. The Ministry of Industry and Advanced Technology (MoIAT) was established in July 2020 to help achieve these goals and manage the strategy.

The UN report also noted that the UAE has improved its industrial performance in four out of eight indicators, helping it to climb the global industrial rankings. UAE has moved up 14 places from 31st to 17th in terms of manufacturing exports per capita while moving up to 32nd in terms of total manufacturing exports.

It also ranked 28th in the world for manufacturing value-added per capita, while jumping up eight places from 115th last year to 107th for the share of manufactured goods in the total export mix.

Globally, Germany ranked first in CIP 2021, followed by China, the US, Japan, and South Korea. The UAE was the only Arab nation that received a “high performance” rating in the index and ranked third in the Middle East after Turkey and Israel.

Related: Dubai Chamber introduces new business intelligence tool to help exporters