The UAE Ministry of Industry and Advanced Technology (MoIAT) has announced a major expansion of its landmark 'Operation 300bn' industrial strategy for 2026. Designed to supercharge the domestic manufacturing sector, the expanded program introduces high-value capital grants, subsidized industrial utility tariffs, custom duty exemptions, and streamlined In-Country Value (ICV) certification pathways to attract global industrial operators.
Accelerating the UAE's Manufacturing Footprint
Operation 300bn aims to raise the industrial sector's contribution to the national GDP from AED 133 Billion to AED 300 Billion by 2031. The 2026 expansion focuses heavily on advanced manufacturing, petrochemicals, pharmaceuticals, medical technology, food security, and heavy industries.
To lower the barriers of entry for foreign industrial groups, MoIAT in coordination with Emirates Development Bank (EDB) has unlocked a new AED 5 Billion dedicated financing pool. This fund offers long-term, low-interest asset financing and working capital loans specifically for companies integrating Industry 4.0 technologies, robotics, and smart automation into their production lines.
Industrial Structuring Insight
The National In-Country Value (ICV) program is a critical component for success. Companies with high ICV scores receive priority in government procurement tenders. Securing an ICV certificate early can accelerate corporate growth by opening lucrative public sector contracts.
Key Incentives Under the 2026 Phase
Under the newly expanded framework, registered manufacturing companies can access several key benefits:
- • Custom Duty Waivers: 100% exemption on customs duties for all imported raw materials, machinery, and spare parts utilized in the manufacturing process.
- • Subsidized Utilities: Reduced electricity and water tariffs guaranteed for the first 5 years of operation for energy-intensive industrial facilities.
- • Industrial Land Discounts: Long-term land lease options in premier industrial zones like KEZAD (Abu Dhabi) and Dubai Industrial City (DI) at highly competitive rates.
Structuring Your Industrial Company
Industrial setups require coordination across multiple regulatory bodies, including MoIAT, the local Department of Economic Development (DED), and environmental protection agencies. Manufacturing activities must be established onshore or within specialized industrial free zones to qualify for these incentives.
Our advisory team helps manufacturers navigate activity selection, environmental impact approvals, factory licensing, custom code registration, and EDB financing pre-qualification.