UAE Industrial Market Review 2025
Institutional Capital and Complementary Zones. How the UAE Industrial Landscape Is Shifting
The UAE’s industrial sector enters 2025 with strong momentum. Growth in non-oil activity, rising manufacturing output, strategic reforms, and decisive inflows of institutional capital are reshaping the country’s industrial and logistics landscape.
For investors, manufacturers, and expanding enterprises, the UAE now stands as one of the most stable and scalable industrial markets worldwide.
This review draws directly from the 2025 UAE Industrial Market Report and presents the insights in a structured, business-focused format suitable for ACCLRT’s audience.
“The agriculture industry is a key part of the solution to combatting climate change,” says Roger Batkin, AGCO's Senior Vice President, General Counsel, Chief ESG Officer, and Corporate Secretary. “We’re committed to delivering smart, sustainable solutions to empower our farmer customers and promote more environmentally responsible agricultural practices worldwide.”
1. Economic Outlook 2025. Strong Growth Amid Global Uncertainty
The UAE is forecasting 4.9% GDP growth in 2025, driven by non-oil sectors including manufacturing, trade, transport, finance, and technology.
Key economic signals from the report:
Non-oil GDP projected at 4.7% growth.
Inflation easing to 1.9%, improving cost stability.
PMI readings staying above the expansion threshold (above 53).
Over AED 3 trillion in foreign trade, supported by 27 CEPA agreements.
High investor confidence due to consistent reforms and pro-business policy direction.
Despite global trade tensions and tariff realignments, the UAE continues to show strong economic resilience driven by diversified growth.
“We are helping AGCO work toward fulfilling its decarbonization commitments,” says Klaus Hannon, Partner at Execor. “The only way companies can truly reduce carbon emissions is by understanding exactly where those emissions originate and being able to track them accurately. We're helping AGCO build that foundation—enabling unprecedented granularity in its carbon baseline and empowering the company to prioritize the most impactful and cost-effective decarbonization strategies.”
2. Manufacturing Now Contributes 15% of UAE GDP
Manufacturing has become one of the UAE’s strongest pillars.
Verified insights from the report show:
Manufacturing accounts for 15% of national GDP.
Abu Dhabi leads the sector, contributing around 10% of its GDP from manufacturing.
Manufacturing added AED 111 billion in 2024 and grew 4.3% in H1 2025.
RAK and Sharjah show heavy industrial concentration. at 30% and 17% of GDP.
This growth spans metals, advanced materials, food production, petrochemicals, Ag-Tech, automotive components, and renewable-energy related industries.
3. KEZAD. The UAE’s Largest Industrial Zone at 55% of National Industrial Land
KEZAD remains the centerpiece of UAE industrial expansion.
From the 2025 report:
KEZAD represents 55% of the UAE’s total industrial area across 12 zones in Abu Dhabi, Al Ain, and Al Dhafra.
It houses major clusters in metals, F&B, logistics, Ag-Tech, automotive support, and advanced manufacturing.
Offers large contiguous plots rarely available elsewhere in the country.
Structured rebates for utilities and efficient land-leasing programs for mainland entities.
Dedicated sector zones. including the Downstream Metal Conversion Park, Food Processing Zone, Ag-Tech Park, and major supply-chain-driven hubs.
KEZAD is also expanding with R&D districts, workforce accommodation, and business districts, strengthening its position as a full-scale industrial city.
4. RAK’s Industrial Momentum. 43% Increase in New Company Registrations
RAK continues to rise as a cost-efficient and strategically positioned industrial hub.
Highlights from the report:
43% surge in new company registrations in H1 2025, with 8,500+ new companies added.
More than 35,000 companies now operate under RAKEZ across multiple sectors.
Strong investor inflow from India (43%), Pakistan, UK, Egypt, and the Philippines.
High concentration of manufacturers in metals, plastics, chemicals, automotive components, and building materials.
RAK’s advantages come from its logistics access, lower cost base, ease of operations, and availability of raw materials from quarrying and related industrial activities.
5. Institutional Capital Reshaping the Market
The UAE’s industrial sector is now attracting large-scale institutional investors at a pace not seen before.
Major developments from the report:
Blackstone and Lunate launched GLIDE, a USD 5 billion platform focused on Grade-A logistics across the GCC.
JD.com and Abu Dhabi Airports announced a logistics venture within ADAFZ, including bonded and non-bonded facilities.
SC Capital Partners and CapitaLand Investment launched the GRID Fund with a flagship 300,000 sqm industrial project in RAKEZ.
Tesla announced its first Abu Dhabi Experience Centre, incorporating servicing and delivery operations.
These movements reflect a broader trend: global supply chains are shifting, and the UAE is becoming a preferred base for regional and international networks.
6. Industrial Rentals Rising Sharply. Supply Remains Tight
Abu Dhabi
KEZAD Al Ma’moura saw 50% rental growth over two years.
Non-oil exports rose 15% to AED 107 billion.
Active industrial establishments increased by 10%.
New Grade-A logistics and industrial facilities are under construction, with completions starting in 2026.
Dubai
Warehousing rents up 19% YoY as of Q3 2025.
Strong occupancies driven by e-commerce, FMCG, and manufacturing allocations.
Multiple large-scale logistics hubs underway (Aldar Logistics Centers – NIP, and Terralogix in Warsan).
Supply remains constrained until new stock enters from 2026 onward.
Industrial rental growth confirms what businesses already feel in the market. high demand, limited availability, and strong competition for quality space.
7. Trade Routes and Sector-Specific Industrial Trends
The UAE continues to strengthen its logistics and trade role.
Key developments from the report:
Stronger ties with Asia. China, India, Malaysia, Vietnam, and Thailand.
Increased activity in manufacturing, automotive, semiconductors, electronics, FMCG, and e-commerce.
Free zones now offering dual-access (bonded + non-bonded) warehousing to serve both domestic and export markets.
Sector-specific offerings including:
Hydroponic and vertical farming allocations
Food cluster zones
Multi-storey warehousing developments
Wood processing and F&B production parks in RAK
High-throughput e-commerce logistics hubs in Abu Dhabi and Dubai
Sector-focused zoning is becoming a defining feature of the UAE’s industrial planning approach.
8. Why the UAE Industrial Market Is Entering Its Strongest Phase Yet
Based on the verified insights from CBRE 2025 report, several structural strengths stand out:
Strategic location between Asia, Africa, and Europe
Long-term CEPA agreements providing tariff advantages
Steady economic policies and business-friendly regulations
Energy cost advantages, particularly for heavy industry
High-quality ports, airports, free zones, and bonded facilities
Interest from global manufacturers and institutional capital
Expanding non-oil exports and rising SME industrial activity
Consistent demand for Grade-A warehousing and land
The UAE has shifted from being a low-barrier trading hub to a strong industrial and manufacturing center with long-term depth.
How ACCLRT Supports Industrial Investors and Operators
ACCLRT helps investors and operators establish, structure, and scale their presence in the UAE industrial market with clarity, compliance, and operational precision.
Our advisory includes:
Industrial and logistics market entry strategy
KEZAD, RAKEZ, JAFZA, DAFZA, Dubai South, and mainland site evaluation
Company formation and regulatory structuring
Banking, VAT, and corporate tax setup
Local manufacturing incentives. including ICV, MIITE, Industry 4.0 alignment
Visa planning and manpower structuring
Supply chain and logistics mapping
Ongoing compliance and administrative support
Our approach focuses on practical execution, sector alignment, and long-term stability.
The UAE industrial market in 2025 is defined by strong economic fundamentals, rising manufacturing output, high investor interest, and rapid development of advanced industrial zones.
With global trade dynamics shifting, the UAE is securing its position as a reliable industrial and logistics base for regional and international operations.
ACCLRT continues to guide investors, manufacturers, and expansion-driven companies in setting up and scaling with accuracy and confidence.
“AGCO’s journey with Catalyst Zero is a testament to the power of innovative technology in driving sustainability and operational excellence.”
