SECTOR UPDATES

TECHNOLOGY SERIES

ADVANCED
MANUFACTURING
IN THE U.A.E.

MARCH 2021

BUSINESS COUNCIL REPORT

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The United Arab Emirates has long viewed the development of its The U.A.E. is an
manufacturing sector as a key component of its economic diversification
strategy. Moreover, the country has launched a series of bold initiatives to
important producer of:
not only grow this sector but also to become a global leader in advanced
manufacturing. The Covid-19 pandemic has only reinforced this trend.

This study, the third in a series of reports about how the U.A.E. is harnessing
the power of technology to transform its economy, reviews government
initiatives in advanced manufacturing before delving into the innovative
technologies driving change. Throughout, this study highlights the key U.S.- Metals
U.A.E. partnerships at the heart of the U.A.E.’s industrial transformation.

A Strong and Growing Industrial Base

Over the past several decades, the U.A.E. has become an important producer
of metals, building materials, petrochemicals, pharmaceuticals, consumer
goods, and component parts for its growing aerospace and defense industry.
In each sector, the U.A.E. is embracing cutting edge manufacturing processes
to maximize efficiency and boost growth.
Building Materials
The U.A.E. benefits from several advantages that contribute to its success as
a manufacturing hub. For instance, the U.A.E. enjoys a strategic location and
world-class transporation infrastructure. It also offers relatively low taxes,
business-friendly regulations, and the ready availability of energy, goods, and
labor. The U.A.E. is building on these advantages to develop local industry,
boost foreign investment, and become a leader in designing the future of
advanced manufacturing.

Petrochemicals

Mubadala Investments in Global Foundries

At the same time that the U.A.E. has developed its indigenous
manufacturing capabilities, it has made major investments in the U.S.
manufacturing sector. For instance, GLOBALFOUNDRIES, the world’s
leading specialty foundry with two manufacturing facilities in New York
Pharmaceuticals
state and a site in Vermont, is 100% owned by Mubadala Investment
Company. Mubadala has invested $12 billion in the GLOBALFOUNDRIES’
FAB 8 facility in upstate New York’s Capital Region, representing one
of the largest public/private partnerships in New York’s history. The
company’s Fab 8 facility located in Saratoga County, New York employs
nearly 3,000 people and supports 18,000 indirect jobs in the region.

U.A.E. Government Initiatives Consumer Goods

Several national and Emirate-level initiatives demonstrate the U.A.E.’s
ambitious and forward-looking goals in the manufacturing vertical.

At a national level, the U.A.E. Strategy for the Fourth Industrial Revolution
was launched in September 2017 to advance innovation in future
technologies in order to strengthen the U.A.E.’s position as an advanced
industrial hub. This strategy has accelerated the U.A.E.’s adoption of
advanced robotics and digitization.

Component Parts for

Aerospace & Defense
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Another initiative of the U.A.E., the Global Manufacturing and Industrialisation Summit (GMIS) was established in 2015
to build bridges between manufacturers, governments and NGOs, technologists, and investors in harnessing the Fourth
Industrial Revolution’s (4IR) transformation of manufacturing to enable the regeneration of the global economy. A joint
initiative by the United Arab Emirates and the United Nations Industrial Development Organization (UNIDO), GMIS is a
global platform that presents stakeholders with an opportunity to shape the future of the manufacturing sector and
contribute towards global good by advancing some of the United Nations Sustainable Development Goals.

3D Printing
3D printing, also known as additive manufacturing, is one area in which the
U.A.E. is advancing rapidly. With countless applications in sectors ranging
from construction and aerospace to healthcare, 3D printing is poised to play
a transformational role in the U.A.E.’s industrial development.
The adoption of 3D printing technologies is especially apparent in Dubai’s
Warsan Building in Dubai
construction sector. The Emirate, which has introduced a 3D printing strategy
in line with its broader industrial strategy, is home to the largest 3D-printed
is the largest 3D-printed
building in the world. By 2030, Dubai aims to use 3D-printed materials for building in the world.
25% of all new construction.
In Abu Dhabi, 3D printing has also been embraced in a variety of innovative
ways. For instance, in 2019, Etihad Engineering, the Maintenance, Repair, and
Overhaul division of Etihad Aviation Group, collaborated with 3D technology
providers to open an additive manufacturing facility capable of producing
and reducing the weight of cabin parts.

25%

Dubai aims to use

3D-printed materials
for 25% of all new
Healthcare presents yet another space in which the U.A.E. is applying 3D construction.
printing. In February of 2020, Dubai Health Authority opened a 3D printing lab
to help DHA medical professionals test aortic valve implants, reconstructive
surgery parts, and other medical devices.
Given the many valuable uses of 3D printing technology, the U.A.E. has taken
an increasingly proactive approach to partnerships in the space. In July 2020,
the Dubai government launched the 3D Printing Strategic Alliance, which
will allow for coordination between government and 3D printing businesses
in the case of crises. The strategy, which is being led by the Dubai Future
Foundation, aims to boost the U.A.E.’s capacity to manufacture locally in an
effort to mitigate supply chain strains, an especially important objective in
the context of the coronavirus pandemic.
DHA opened a 3D printing
lab to test aortic valve
Industry 4.0 & Digitalization implants, reconstructive
surgery parts, and other
Digitalization in its many forms, including the application of Internet of medical devices.
Things technology, artificial intelligence, and blockchain, are also factoring
heavily into the U.A.E.’s industrialization strategies.

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 GE Aviation & Emirates Shape the Future of Flight
GE Aviation and Emirates are working together to implement digital solutions for the future of flight. Roll-
out is nearing completion for GE’s Flight Pulse application and electronic Flight Operations Quality Assurance
(eFQQA) solution on Emirate’s fleet of B777 and A380 aircraft. FlightPulse is a mobile app that provides
pilots with data and analytics to help them fly more efficiently and help reduce carbon emissions. The eFQQA
service uses flight data generated by the aircraft and its systems to help Emirates better manage their fleet,
providing previously unavailable insight into their operations.

Emirates Global Aluminum, one of the world’s largest premium aluminum producers, has played a central role in
adopting digitalization to advance industry in the U.A.E. Owned equally by Mubadala Investment Company and
the Investment Corporation of Dubai, EGA has long been a leader in innovation in manufacturing processes. In
fact, for more than 25 years, EGA has used its own advanced aluminum smelting technology in every smelter
expansion and retrofitting of older production lines. EGA’s latest technology, the 10th generation, is amongst
the most energy efficient in the world, and in 2016, EGA became the first U.A.E. industrial company to export its
core process technology.

EGA is now actively progressing the use of Industry 4.0 technology throughout its operations. For example, EGA
is maximizing performance at its Al Taweelah alumina refinery with the use of digital twinning—a system in
which a virtual copy of a physical asset or product is used to simulate and model complex operations. EGA uses
digital twinning to train new employees, optimize resources, and boost safety. EGA’s technology development
team continues to work with universities all over the world – including MIT – to combine the latest academic
thinking with its industrial expertise.

Honeywell AI Partnership Drives Efficiency at ADNOC

Abu Dhabi National Oil Company (ADNOC) is maximizing efficiency and managing refinery maintenance using
Honeywell Forge software, which collects data and processes analytics in an AI model library. Honeywell
Forge monitors performance indicators to improve operations over time and provides notifications when
maintenance work is necessary. The partnership comes as part of ADNOC’s 2030 innovation strategy and has
already led to cost savings and increased reliability.

3
Robotics
Strata, the U.A.E.’s composite aero structure manufacturing leader, is
helping to drive transformation in the global aerospace industry through
investments in robotics. In 2019, Strata announced a collaboration
with U.A.E.-based DGWorld to automate assembly operations such
as drilling, reaming, and countersinking—all of which are critical in
the production of aircraft components. Once the process is qualified,
the robotics system will be integrated into Strata’s production line.
In 2019, Strata announced
Strata’s move towards automating production capabilities with the
use of robotics alongside employees will reduce processing times and
a collaboration with U.A.E.-
save costs, offering greater efficiency advantages for the company’s based DGWorld to automate
global customers. assembly operations such
as drilling, reaming, and
countersinking.

Strata and Honeywell Mobilize to Produce PPE

The adoption of robotics technology and use of advanced
manufacturing capabilities allowed Strata to quickly pivot to
producing N95 masks to help meet the U.A.E.’s demands for personal Robotics & advanced
protective equipment (PPE) in the midst of the coronavirus pandemic. manufacturing allowed Strata
In partnership with Honeywell, Strata ramped up to full capacity
to quickly pivot to producing
production using its advanced technology to produce millions of the
critically important masks. N95 masks to help meet the
U.A.E.’s demainds for PPE.

Exechon Enterprises, a joint venture between U.S. aerospace and defense giant Lockheed Martin, the
U.A.E.’s Injaz National, and Sweden’s Tecgrant AB is also advancing the role of robotics in the U.A.E.’s
manufacturing sector. In 2017, Exechon introduced the XMini robot, the first machine tool built in carbon
fiber. The XMini robot is now used by Refco Metals of Al Ghurair Group, a U.A.E. autopart supplier for
leading brands like Ford.

XMini Robot
first machine tool built in
carbon fiber, is now used by
Refco Metals of Al Ghurair
Group, a U.A.E. autopart
supplier for leading brands
like Ford

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Looking Ahead
The Covid-19 pandemic, which demonstrated the fragility of global supply chains, only reinforced the U.A.E.’s desire
to build up its domestic manufacturing sector. In this spirit, in July 2020, Abu Dhabi’s Department of Economic
Development outlined investment opportunities in 27 fields to boost local manufacturing of basic consumer and
industrial products in a push towards self-sufficiency.

At the same time that the pandemic reinforced the U.A.E.’s industrial push, the pandemic has led the U.A.E. to
accelerate its ongoing efforts to leverage technology to diversify its economy and move even faster toward a
knowledge-based economy. In July 2020, the U.A.E. appointed His Excellency Sultan Al Jaber, the head of Abu
Dhabi National Oil Company (ADNOC), to a newly created position, the U.A.E. Minister of Industry and Advanced
Technology. Both the name of this Ministry and the appointment of one of Abu Dhabi’s most visionary businessmen
to its head reflect the importance that the U.A.E. is placing at a national level to revolutionizing industry through
the adoption of groundbreaking technologies.

As such, expect the U.A.E. to play an ever-more prominent role in the future of manufacturing in the coming years.
Moreover, expect leading U.S. companies to stand side by side with the U.A.E. as it does so.

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