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Abu Dhabi Announces Car Manufacturing Plans

Abu Dhabi Announces Car Manufacturing Plans

Gulf Insider20-05-2025

Abu Dhabi is set to become a manufacturing hub for the automotive industry as it attracts investment and creates jobs in the UAE.
The Abu Dhabi Investment Office (ADIO) announced the launch of a major economic programme targeting the establishment of an end-to-end automotive ecosystem.
Backed by multi-billion-dirham investments from global industry leaders, the programme aims to transform Abu Dhabi into the region's foremost hub for smart automotive manufacturing and assembly, R&D, restoration, auctions and luxury automobiles.
Announced during the Make it in the Emirates Forum 2025 (MIITE), the automotive programme is projected to contribute AED100bn ($27.2bn) to Abu Dhabi's GDP by 2045, attract more than AED8bn ($2.2bn) in FDI and create 7,000 high-skilled jobs.
The inclusion of advanced R&D and engineering centres, as well as participation from Tier 1 and 2 suppliers and premium OEMs, ensures that the entire value chain, from design and manufacturing to aftersales, generates sustained economic impact and long-term industrial competitiveness.
In addition to manufacturing, the holistic ecosystem will encompass activations, annual product launches, motorsport and industry events, luxury car restoration and premium vehicle auctions.
Talent development will also be a cornerstone of the automotive programme. In collaboration with top universities, ADIO has created the region's first Automotive AI Curriculum, focused on product design.
The programme combines advanced research, AI, training and international placements, further embedding local talent in the global mobility value chain.
Badr Al Olama, Director General of ADIO, said: 'Backed by automotive OEMs, our automotive programme is a defining step in Abu Dhabi's evolution as a global economic powerhouse, reinforcing our strength in advanced manufacturing, future mobility and design excellence.
'It reflects Abu Dhabi's long-term vision to build not just competitive sectors, but entire ecosystems that shape global standards and unlock innovation.
'It signals that the emirate is not just a destination for investment, but a global, export-driven hub where talent, technology and bold ambition converge.'
Mohammad Ali Al Kamali, Chief Industry and Trade Officer at ADIO, said: 'With the launch of the automotive programme, we are moving beyond assembly to create an end-to-end manufacturing and innovation ecosystem, where global OEMs, specialist automotive suppliers and emerging technology players can co-locate, collaborate and scale from Abu Dhabi.
'This is how we industrialise opportunity: by combining strategic infrastructure, future-focused talent and global partnerships to make Abu Dhabi a centre of gravity for automotive production and smart mobility systems.'
More than ten commercial and investment agreements were announced as part of the automotive programme during the MIITE Forum, marking the first full demonstration of Abu Dhabi's automotive programme in motion.
Leading automotive manufacturers, including Genesis and ROX Motors, confirmed new manufacturing agreements with W Motors in Abu Dhabi, establishing the emirate as a production hub for regional and international markets.
Additionally, AIH Group, one of the world's largest automotive assembly providers, is now embedded in the local manufacturing landscape as the technical lead for high-volume vehicle production.
These anchor projects are complemented by a robust network of local supply chain partnerships that enhance each stage of automotive production.
This includes lightweight materials through Borouge, battery systems by Enercap, and aluminium components through Automotive Precision Technology (APT), establishing a full-spectrum vehicle manufacturing ecosystem.
Together, these investments mark a pivotal step in shaping Abu Dhabi's automotive future, one that blends advanced manufacturing with cutting-edge design, sustainable mobility and global reach.
By anchoring world-class talent, technology and supply chains in the emirate, the automotive programme sets a new standard for industrial excellence in the region and beyond.
Also read: Abu Dhabi Authorities Bust Smuggler Who Hid $1.4m of Cocaine in His Intestines

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