https://www.arabianbusiness.com/ :The UAE has opened applications for a AED 1 billion ($272.3 million) fund designed to strengthen domestic manufacturing, reduce reliance on imports and protect critical supply chains.

It comes as the country steps up efforts to build a more self-sufficient industrial economy.

Emirates Development Bank (EDB), in collaboration with the Ministry of Industry and Advanced Technology (MoIAT), has activated an online application portal for the National Industrial Resilience Fund (NIRF).

It allows eligible manufacturers to apply for financing through EDB’s website.

Established by the UAE Cabinet in April 2026, the five-year initiative will provide targeted financing to new factories and existing industrial businesses looking to establish, expand or integrate manufacturing operations in strategic sectors.

Priority will be given to projects that support the localisation of critical industries, import substitution and the development of more resilient domestic supply chains.

Global competitiveness
Hasan Jasem Al Nowais, Undersecretary of MoIAT, said the fund represented a significant step towards strengthening the UAE’s industrial capabilities and global competitiveness.

“The Fund supports the localisation of critical industries, strengthens supply chain resilience and advances import substitution, while accelerating the adoption of AI solutions in production and operations,” he said.

He added that the initiative would help turn market demand into domestic manufacturing opportunities, while reducing dependence on external sources and building strategic reserves of essential industrial products.

The fund will focus on strategic sectors identified through an approved list of eligible products. These include pharmaceuticals, medical supplies, food production and processing, alongside other critical industries approved by the Joint Governance Committee.

Financing will cover a range of investments, including the construction of new factories, production lines, machinery, factory expansions and integrated manufacturing projects.

Businesses will also be able to access funding for strategic inventory, supplier payments and working capital to increase production.

Commercially-viable products
Ahmed Mohamed Al Naqbi, CEO of EDB, said the initiative would connect financing with confirmed market demand, helping manufacturers develop commercially viable projects while strengthening national supply chains.

“Through our partnership with the Ministry of Industry and Advanced Technology, EDB will provide targeted financing to help eligible manufacturers establish new factories, expand existing operations and increase local production in priority sectors,” he said.

One of the fund’s most significant attractions is its concessional financing structure. Eligible industrial projects can access funding at zero per cent interest until the end of the programme, subject to an annual service fee of 0.75 per cent.

Financing is capped at AED 100 million per corporate group, with capital expenditure funding covering up to 80 per cent of eligible project costs. Both new and established manufacturers can apply, subject to the fund’s conditions and EDB’s credit assessment criteria.

The initiative also places emphasis on the adoption of advanced manufacturing technologies, including industrial artificial intelligence and automation, as the UAE looks to modernise production and improve industrial productivity.

The National Industrial Resilience Fund forms part of the UAE’s broader National Strategy for Industry and Advanced Technology and the Make it in the Emirates programme.