AGP Executive Report

Industrial AI: Sharjah has launched a $100,000 accelerator to help AI companies turn prototypes into industrial products, with access to testing facilities and manufacturing partners. Food Production: Sharjah’s Fili Poultry Farm is the first in the UAE to receive the Ministry of Industry and Advanced Technology’s Free-Range Label, supporting local food standards and consumer confidence. Digital Finance: Ant International won two Central Bank of the UAE licences, clearing the way for expanded merchant payments, stored-value services and cross-border transactions. Trade and Logistics: A Dubai joint venture between Gargash Prime and JD.com’s JINGDONG Property plans a 2.5 million-square-foot distribution hub; separately, Abu Dhabi Chamber connected 11 companies with UK and international businesses in London. Energy and Supply Chains: ADIPEC returns to Abu Dhabi on November 2–5, expecting 239,000 visitors as the UAE’s oil output reaches a record 5.3 million barrels a day. But escalating attacks around the Strait of Hormuz underscore the risks to Gulf exports and shipping.

Economic Outlook: The UAE is showcasing its diversification and investment record at the IMF and World Bank meetings, with the central bank governor forecasting growth of around 10% in 2027. The economy grew 6.2% in 2025, while non-oil activities made up more than 79% of GDP in the first half of 2026. Advanced Industry: Chinese robotics firms are exploring UAE partnerships that could bring automated assembly and production to the Gulf, building on the country’s push to expand higher-value manufacturing. Connectivity: du has launched commercial U6GHz service on its 5G+ network, while etisalat has boosted smartphone upload speeds—steps towards future 6G services. Space Economy: Sector spending rose 27.1% to Dh5.52 billion, with commercial businesses accounting for nearly half. Trade and Logistics: Rhenus opened an aid-and-relief logistics office at Dubai Humanitarian, strengthening the emirate’s role in emergency response. Shipping Risks: Attacks in the Strait of Hormuz sank two vessels this week, raising risks and costs for trade through a vital energy corridor. Aviation: Dubai Airport Show concluded with a focus on AI, biometrics and digital systems as regional airports expand.

Shipping & Energy: Two ships sank near the Strait of Hormuz after projectile strikes, including UAE-managed bulk carrier Cape Dao. The attacks threaten a vital route for oil and global trade. Investment: The UAE approved Dh292.5 billion in federal spending for 2027–29, while Dubai says Dh2.1 trillion in projects are underway. Industry & Logistics: Shree Cement commissioned a 3-million-tonne grinding plant in the UAE, backed by AED115 million in investment. Aegis Logistics agreed to buy a 90% stake in Dubai-based Tristar for $809 million. Aviation: FL Technics added approvals for four aircraft types, including the A350 and Boeing 787, expanding its UAE maintenance base for growth across the Middle East and Africa. Construction: Abu Dhabi clarified the roles of consultants and contractors on building projects, aiming to improve accountability and speed delivery. Energy: Abu Dhabi plans Dh250 billion in energy investment as rising AI demand drives power needs.

Projects and Spending: Dubai has nearly AED2.1 trillion in projects underway, spanning real estate, aviation, transport and infrastructure. UAE authorities also accelerated Q1 capital spending to AED18.6 billion to cushion the impact of regional conflict. Construction and Logistics: Shree Cement commissioned a UAE grinding plant with 3 million tonnes of annual capacity, backed by AED115 million. A China–Abu Dhabi consortium won a $2.7 billion contract for an Al Maktoum International Airport terminal. Energy and Growth: Abu Dhabi is planning AED250 billion in energy investment as demand rises, while the IMF forecasts UAE growth of 7.7% in 2027. Trade Risks: Attacks and threats around the Strait of Hormuz are disrupting shipping and adding uncertainty to oil markets, raising risks for regional energy trade.

Investment Pipeline: Dubai has nearly Dh2.1 trillion in projects underway across housing, transport, aviation and infrastructure, Sheikh Mohammed said at a leadership forum. Industrial Partnerships: A UAE delegation at China’s International Industry Fair is exploring investment, technology transfer and smart-manufacturing deals with Chinese firms. Food Innovation: Abu Dhabi has opened a route for controlled tasting trials of cultivated meat and precision-fermented proteins, helping companies test products before commercial approval. Digital Infrastructure: du says it has launched the world’s first commercial U6GHz service on a live 5G+ network, adding capacity for businesses and emerging digital applications. Energy and Shipping: Iranian attacks on vessels in the Strait of Hormuz are prompting caution among operators and could threaten the recovery of Gulf oil exports. Economic Outlook: The IMF forecasts UAE growth of 7.7% in 2027, among the strongest rates for regional energy exporters.

AI and Cybersecurity: Abu Dhabi’s CPX and South Korea’s AIM Intelligence signed a pact to develop AI security solutions and explore joint projects in the UAE. Public Investment: The Cabinet approved Dh292.5 billion in federal spending for 2027–29, while Abu Dhabi plans Dh250 billion in energy investment as AI drives power demand. Aviation and Logistics: A China–Abu Dhabi joint venture won a $2.7 billion Al Maktoum Airport terminal contract; Dubai’s Airport Show is also showcasing aviation technology and infrastructure. Trade and Industry: The UAE is seeking manufacturing partnerships at China’s industry fair, and Silal is expanding local blueberry production through a new partnership. Energy and Connectivity: UAE and Saudi Arabia agreed to study rail and power links, while tanker diversions near Fujairah underscore the risks to Gulf oil shipping. Economic Outlook: The IMF projects UAE growth of 7.7% in 2027 after a weaker 2026, with non-oil activity helping cushion disruption.

Airport Expansion: A China Civil Engineering–Tristar joint venture won the AED10 billion ($2.7 billion) contract for Al Maktoum International Airport’s West Terminal substructure. The 800,000-square-metre terminal is planned to handle 45 million passengers a year. Energy and AI: Abu Dhabi plans Dh250 billion in energy and water investment through 2035, as AI infrastructure could require 2GW of power initially, rising to 5GW. Public Investment: The UAE approved Dh292.5 billion in federal spending for 2027–29, up 28.3% on the previous three years. Fitch forecasts 8.5% economic growth in 2027, with non-oil growth expected to rebound. Industrial Growth: Dubai Chambers will train 14,000 companies in agentic AI adoption, while Silal’s partnership with Ayla Berries aims to expand local blueberry production. Construction and Logistics: KONE will supply 59 elevators and 15 escalators for Dubai’s 725-metre Burj Azizi; Seabreeze Logistics marked 30 years with a new Dubai regional headquarters.

Clean Energy: EWEC opened registration for its Q4 Clean Energy Certificate auction, closing October 30. Each certificate covers one megawatt-hour of clean electricity, giving UAE businesses a way to document renewable power use. Trade: The UAE and Singapore are seeking to deepen business and investment ties; bilateral non-oil trade rose 25.3% to $6.54 billion in 2025. Food Innovation: Abu Dhabi now allows public tastings of cultivated meat and precision-fermented foods before full UAE approval, creating a new route for food-tech companies to test products. Infrastructure: Abu Dhabi plans major road upgrades in Musaffah to improve traffic flow and cut travel times. Economic Outlook: UAE GDP grew 0.4% in the first half of 2026, with non-oil sectors expanding 1.8%.

Infrastructure: Abu Dhabi plans a 13-kilometre Musaffah road overhaul, including new bridges and a three-lane expressway to ease traffic and improve access to the industrial area. Trade: The UAE and Singapore are exploring ways to deepen trade and investment ties, with a focus on turning opportunities into business projects. Logistics: JD.com’s property arm and KEZAD will develop a 150,000-square-metre logistics facility, due in 2028, with automation and digital systems. Investment: Dubai’s Oraseya Capital fund has doubled to $272 million, increasing its capacity to back startups and growth companies. Innovation: The UAE is waiving fees across 29 industrial-property services for student inventors and People of Determination. Energy: UAE and French industry leaders discussed cooperation on clean power, nuclear energy and grid flexibility as electricity demand rises.

Maritime Safety: UAE authorities rescued all 22 crew members after a tanker caught fire off the coast; the incident underscores risks to shipping and energy routes in the Gulf. Industrial Response: Abu Dhabi-based ALIF Holding has proposed an oil-spill response system for ports, terminals and offshore sites, combining monitoring, containment and recovery. Finance: Dubai and France’s BPCE are exploring cooperation in banking, investment and financial services as the UAE seeks to attract global institutions. Food and Industry: Global Food Week in Abu Dhabi closed with $1.88 billion in deals, while UAE-Japan talks focused on deeper cooperation in industry, technology and research. Economic Growth: UAE GDP reached Dh961.9 billion in the first half of 2026, with non-oil sectors growing 1.8%.

Industrial Shift: The UAE is moving from expanding factory capacity to higher-value, technology-led manufacturing, with policy initiatives targeting productivity, exports and innovation. Cleaner Production: Holcim UAE and 44.01 have commissioned the country’s first live cement-plant carbon capture and underground mineralisation pilot in Fujairah, designed to capture up to 4.5 tonnes of CO₂ daily. Trade and Logistics: AD Ports Group completed its $835 million acquisition of Brazil’s CLI, its largest deal and first strategic move into South America. In Abu Dhabi, JD.com’s Jindong Property is developing a 150,000-square-metre logistics facility at KEZAD, due in 2028. Local Manufacturing: Sharjah-based Kingston Holdings plans a $20 million expansion to triple capacity, while Shyam Steel has opened its first overseas manufacturing plant in Hamriyah Free Zone. Economic Outlook: UAE GDP reached Dh961.9 billion in the first half of 2026, with non-oil sectors expanding despite a second-quarter contraction.

Maritime Security: A drone strike hit a Panama-flagged tanker at Sharjah Anchorage; all 22 crew members were safe, but the attack underscores risks to Gulf shipping. Food Industry: Abu Dhabi Global Food Week closed with Dh6.9 billion in deals and drew more than 47,000 visitors, while UAE food makers say new salt and sugar limits are manageable. Air Cargo: Etihad Cargo restored daily Shanghai passenger service, lifting capacity on the route to about 840 tonnes a week. Sovereign AI: UAE firms Kerno and SAAL.ai will develop an AI-in-a-Box system built and supported locally, strengthening domestic technology capabilities. Economic Growth: UAE GDP reached Dh961.9 billion in the first half of 2026, with non-oil sectors expanding 1.8%. Trade Links: The UAE and Saudi Arabia agreed to deepen rail and electricity connections, supporting cross-border trade and infrastructure. Advanced Manufacturing: Dana Gas and Levidian advanced graphene production in Sharjah with the first unit of a UAE manufacturing project.

Food and Agriculture: Abu Dhabi’s Global Food Week closed with 97 agreements worth Dh6.9 billion, while a new agricultural city is planned to support UAE food security. Economic Growth: UAE real GDP reached Dh961.9 billion in the first half of 2026, up 0.4% year on year; non-oil activity grew 1.8% and accounted for 79.2% of output. Cybersecurity: UAE organisations faced an average of 2,521 cyberattacks a week in September, a 47% increase from a year earlier. Energy and Logistics: A vessel was struck by an unknown projectile off the UAE coast, highlighting rising risks to shipping; the UAE and Saudi Arabia also agreed to strengthen rail and electricity links. Industrial Partnerships: EDGE signed a framework with Morocco to explore local production of small arms and aircraft engines, extending UAE defence manufacturing partnerships abroad.

Food Supply Chains: UAE retailers and producers are shifting to local and Asian suppliers, and chartering ships and flights, to keep food moving amid Strait of Hormuz disruption. Lulu says some sea shipments took up to 70 days. Regional Connectivity: The UAE and Saudi Arabia signed an MoU to study cross-border rail links and electricity trading, aiming to ease freight movement and deepen energy integration. Energy Trade: Record tanker costs are reshaping Asian crude buying: refiners are weighing more UAE Murban, whose premium rose above $11 a barrel as US-to-Asia shipping became uneconomic. AI Investment: SoftBank is seeking up to $100 billion from Gulf investors for an AI-focused fund and has held talks with senior figures in the UAE. Port Operations: UAE-based DP World is set to operate Bangladesh’s New Mooring Container Terminal under a 15-year deal, despite protests from port workers.

Regional Connectivity: The UAE and Saudi Arabia signed an MoU to study cross-border rail links and electricity trading, aiming to improve freight flows, supply chains and regional integration. Global Logistics: Bangladesh has awarded DP World a 15-year concession to operate and modernise Chittagong’s New Mooring Container Terminal, with investment planned in equipment and digital logistics. Bangladesh’s prime minister also invited the UAE operator to explore free trade zones and rail-linked inland depots. Food Security: Abu Dhabi is exploring a land-based aquaculture project targeting 30,000 tonnes of seafood a year, subject to feasibility studies and approvals. The proposed facility could include processing, cold storage and fish-feed production. AI and Industry: Abu Dhabi’s Presight and US-based Scale AI will explore AI tools for government and business, including systems for emergency response and critical infrastructure. SME Opportunities: Abu Dhabi Chamber’s Procurement Connect linked local businesses with major buyers, including Etihad Rail and Aldar, and shared guidance on upcoming projects and supplier registration.

Projects & Trade: The UAE awarded $15.6 billion in projects in Q3, led by $6.2 billion in gas contracts and $5 billion in construction. DHL says AI infrastructure demand is driving global trade growth despite tariffs. Industrial Integration: The UAE showcased 23 companies at GCC industry meetings in Bahrain, focusing on stronger regional supply chains and advanced technology. Digital Infrastructure: ESR is targeting the UAE and Saudi Arabia for a logistics and data-centre platform, with a pipeline valued at more than $10 billion. Advanced Manufacturing: Dana Gas has begun industrial graphene production in Sharjah, while ADNOC Logistics & Services ordered three very large gas carriers for $324 million. AI & Resources: A UAE report urges integrated planning for AI, water and energy as data-centre demand grows.