Today's Edition
MAYS IBRAHIM (ABU DHABI)
UAE infrastructure and energy projects are increasingly sourcing industrial components from domestic manufacturers as supply chain disruptions and state-backed localisation policies reshape procurement across critical sectors.
The shift is most visible in high-specification equipment used in power, water, oil and gas, and renewable energy systems, where downtime carries significant operational risk.
"Local manufacturing has shifted from being an efficiency play to a strategic necessity," Liam Hurley, President for Middle East and Africa at Emerson, told Aletihad in an interview on the sidelines of Make it in the Emirates (MIITE) 2026. "It underpins economic continuity, strengthens industrial resilience, and supports sustained growth."
Hurley said recent global disruptions had exposed vulnerabilities in extended supply chains, accelerating demand for regional production that can respond faster to operational needs in critical infrastructure.
At Emerson's Jebel Ali facility, operating in the UAE since 2008, the company manufactures its Fisher control valves, its Rosemount measurement instrumentation, and pressure management systems used across energy and utilities networks.
Nearly 80% of output is exported across the Middle East, Africa, and global markets, according to Hurley.
"Many of these products are classified as mission-critical within the oil and gas sector," he said. "They need to be readily available to keep industrial operations running safely and continuously."
Local manufacturing, he added, helps shorten response times and improves availability, where downtime carries significant operational and financial impact.
An Integrated Ecosystem
For Emerson, the UAE's appeal as a manufacturing hub points to an integrated industrial ecosystem, combining world-class infrastructure, connectivity, stable governance, access to global talent, and a growing supplier base.
"The result is an environment capable of supporting sophisticated, large-scale industrial operations," Hurley said.
The broader shift is being reinforced by government-backed industrial strategies and in-country value frameworks, alongside procurement demand from large state-linked infrastructure and energy buyers.
Frederic Ozeir, Partner at Oliver Wyman, agreed that UAE infrastructure procurement is increasingly prioritising local sourcing, but in a selective and targeted manner.
"This is not a blanket substitution of imports," he told Aletihad. "The shift is most visible where domestic production can improve business continuity, reduce delivery risk, and build capability in products that are strategically important."
These include valves, cables, pressure vessels, process chemicals, fabricated materials, and other engineered products where quality certification and reliability are critical.
Ozeir said the key change is visibility of demand from large buyers. "When major buyers give a clear view of future procurement needs, it becomes easier to invest in UAE-based capacity."
The UAE's competitive advantage lies in its logistics infrastructure, industrial zones, and regional connectivity, combined with policy clarity and anchor demand from national companies, according to Ozeir.
"Financing support, industrial incentives, and ICV-linked mechanisms also help narrow the gap between ambition and execution," he added.
Beyond Compliance
Masdar, the UAE's renewable energy developer, said localisation has been embedded in its procurement strategy since its inception in 2006 – well before formal ICV frameworks were introduced.
"We don't look at in-country value as a compliance requirement," Jad Masri, Senior Director of Group Supply Chain and Procurement at Masdar, told Aletihad in an interview on the sidelines of MIITE. "It's a strategic approach to enhancing local content and building capability wherever we develop projects."
Since 2022, Masdar has exceeded 55% in-country value targets, with a 20% year-on-year increase in local suppliers and over Dh418 million in indirect spend directed to domestic suppliers.
Masri said the company actively connects international technology providers with UAE-based manufacturers and investment partners to establish local production capabilities.
International Manufacturers Setting Up Shop in UAE
Michel Abi Saab, General Manager of Emerge, a joint venture between Masdar and EDF, told Aletihad the company prioritise local production where possible: "A significant share of our components are already sourced locally, particularly electrical systems and cables."
The company develops and operates solar and battery storage systems for commercial and industrial clients, including major infrastructure operators and industrial sites.
Emerge currently manages more than 300 MW of solar capacity in the UAE, with additional projects in development across industrial, transport, and public infrastructure sectors.
Abi Saab said international manufacturers are increasingly setting up production or assembly facilities in the UAE to meet regional demand and localisation requirements.
He added that the UAE offers "unparalleled" infrastructure for manufacturing and export.
Ozeir said the next phase of development for the UAE's industrial capabilities will depend on moving beyond assembly into higher-value manufacturing.
"That means more engineering, design, testing, certification, IP ownership, and development of tier-two and tier-three suppliers," he said.
He identified advanced materials, clean energy equipment, water technologies, aerospace, defence, medical technology, and industrial automation as areas with the strongest long-term potential.
