Abu Dhabi Unveils $3B in Transport Sector Investments

The Abu Dhabi Department of Economic Development (ADDED) has recently unveiled a comprehensive guide that showcases promising investment opportunities in the Emirate's burgeoning transportation industries. The guide, which is part of the Abu Dhabi Channel Partners program, provides valuable insights for domestic and international investors keen on capitalizing on a sector expected to hit a combined market size of AED11.04bn ($3bn) by 2027.

At DRIFTx, an international platform that promotes advancements in smart and autonomous mobility across the air, land, and sea sectors, Ahmed Jasim Al Zaabi, Chairman of ADDED, shared this new development. DRIFTx, supported by the Abu Dhabi Investment Office (ADIO), also witnessed the launch of the Smart and Autonomous Vehicle Industry (SAVI) cluster in 2023 with the aim of redefining global transportation norms.

Al Zaabi emphasized how these lucrative investment opportunities could bolster Abu Dhabi’s industrial landscape while contributing significantly towards transforming it into a diversified, intelligent, and sustainable economy. He further highlighted how such initiatives align perfectly with their vision of positioning Abu Dhabi as a global tech hub and innovation center for manufacturing.

In 2023 alone, the value of the manufacturing sector in Abu Dhabi grew substantially to reach AED101bn, thereby accounting for an 8.8 percent contribution towards total GDP and 16.5 percent towards non-oil GDP growth rate, which stood at an impressive figure of 9.1 percent, amounting to AED610bn.

The potential growth within the transportation industry will undoubtedly play an instrumental role in achieving ambitious economic targets set out by authorities in Abu Dhabi, who are committed to diversifying their economy through a focus on emerging sectors like certain manufacturing areas, among others, while leveraging innovative tools across different industries.

Investment prospects in transportation include exciting avenues such as commercial drone development and marketing, electric vehicle charging infrastructure, automotive battery systems, aircraft landing gear production, e-scooters assembly line setup, automotive tire manufacturing, and so on. They estimate the forecasted compound annual growth rate (CAGR) for these opportunities to range from 5.7 percent for traditional industries, 9.4 percent for high-growth sectors, and a staggering 31.5 percent for disruptive transportation industries.

Initiated as part of the Emirate's Industrial Strategy (ADIS) in 2023, the Abu Dhabi Channel Partners program aims to enhance the industrial ecosystem by providing detailed guides that address key investment requirements from stakeholders.

Abu Dhabi has been successful in creating an environment that encourages innovation-driven businesses by providing access to partnerships, funding, and numerous opportunities within non-oil sectors, attracting both local and international investors.

The Industrial Development Bureau (IDB), ADDED's dedicated wing tasked with developing and regulating the industrial sector, has been actively launching new initiatives aimed at inviting global players into Abu Dhabi so as to fulfill objectives outlined under the ADIS strategy.

The Abu Dhabi Channel Partners program, a major initiative by ADIS, aims to boost the city's competitiveness on a global scale, attract both domestic and foreign direct investments, and significantly increase the contribution of the industrial sector to the non-oil GDP.