The disruption of the Covid-19 pandemic in 2020-21 highlighted a range of inefficiencies in global supply chains, which had pronounced impacts on manufacturing and retail companies – and, ultimately, consumers. Both manufacturing and the industrial sector have also had to contend with high global inflation, which began during the pandemic but has been exacerbated by geopolitical tensions, and its detrimental effect on consumer confidence. In the UAE as a whole, and in the emirate of Abu Dhabi specifically,…
Industry & Retail
From The Report: Abu Dhabi 2023
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The Covid-19 pandemic exposed global supply chain inefficiencies, affecting manufacturing and retail alike. Abu Dhabi, as well as the broader UAE, is applying lessons from this era and focusing on self-sufficiency and local supply chains.
This approach strengthens local retail and wholesale operations, which are adapting to the 5% value-added tax introduced in 2018. At the same time, enhanced governance, services and investment regulations are helping to encourage foreign direct investment in manufacturing.
As conglomerates navigate industrial trends, opportunities for small and medium-sized enterprises (SMEs) in national value chains are growing, benefitting the manufacturing segment, investors and SME ecosystem development.
Abu Dhabi’s expanding e-commerce industry also offers growth potential, supported by the Tajer Abu Dhabi scheme. The transition to renewable energy aligns with development goals and appeals to global businesses seeking robust environmental, social and governance policies, while improved trade relations are enhancing the growth potential of Abu Dhabi’s manufacturing and retail sectors.
This chapter contains an interview with Sultan Al Jaber, UAE Minister of Industry and Advanced Technology.