7 days ago
Cost excellence critical to driving industrial resilience in UAE
United Arab Emirates – As the UAE accelerates its industrial diversification under Operation 300bn, global professional services firm Alvarez & Marsal (A&M) has released a new whitepaper urging industrial companies to place cost excellence at the heart of their operating model.
With growing investment in manufacturing, materials, and downstream processing, the UAE's industrial base is poised for long-term growth. It will also play a key role in delivering national diversification and sustainability targets. However, according to A&M, rapid growth must be matched with disciplined financial planning, transparency, and cost ownership at every level of the organization. The firm notes that adopting structured financial frameworks can help companies seize emerging opportunities and ensure operational excellence as the sector matures.
The UAE has already laid strong foundations. Strategic initiatives such as the Make it in the Emirates campaign and the In-Country Value (ICV) program have created a dynamic, investor-friendly environment. With activity accelerating across advanced manufacturing, metals, and energy-linked industries, industrial development is becoming a catalyst for wider economic transformation.
'The UAE's industrial sector is central to the country's economic diversification strategy,' said Alexander Shvets, Managing Director, Infrastructure & Capital Projects - Metals & Mining, Alvarez & Marsal Middle East. 'Building on this momentum with embedded cost visibility and performance tracking will help operators achieve global competitiveness and long-term value creation.'
Renat Akimbitov, Managing Director, Infrastructure & Capital Projects – Metals and Mining, Alvarez & Marsal Middle East, added: 'Cost control is not just a finance function - it's an operational discipline. In capital-intensive industries, real-time cost visibility and team capability are what turn strategy into measurable results.'
Global Best Practices for Financial Resilience
In its latest Middle East report, Optimizing Cost Control in the Industrial Sector, A&M outlines a proactive four-part strategy for mining and industrial companies to strengthen financial resilience:
Activity-Based Budgeting: Tying budgets directly to operational drivers for greater accuracy and agility.
Real-Time Cost Visibility Platforms: Empowering leaders with digital dashboards to manage costs dynamically.
Structured Cost Review Meetings: Ensuring accountability through regular performance tracking.
Cost Capability Building: Equipping teams with practical tools and training to foster a cost-conscious culture.
The A&M report notes how companies in the region may achieve significant improvements by employing the strategy, including substantive reductions in operating costs and widespread adoption of cost insights in decision-making processes.
From Extraction to Industrial Empowerment
The UAE's industrial vision extends beyond raw material sourcing. Investments in downstream infrastructure - including smelting, refining, and manufacturing facilities - are reducing import dependency and strengthening industrial self-sufficiency. Meanwhile, mega-projects in logistics, energy, and infrastructure are driving unprecedented demand for cost-efficient, locally produced materials.
At the same time, the industry is evolving. Global stakeholders increasingly expect mining operations to demonstrate a capacity to focus on cost discipline and a reliance on local resources, combined with data-led innovation. According to A&M, this presents an opportunity to create a forward-looking, globally respected industry.
About Alvarez & Marsal
Founded in 1983, Alvarez & Marsal is a leading global professional services firm. Renowned for its leadership, action and results, Alvarez & Marsal provides advisory, business performance improvement and turnaround management services, delivering practical solutions to address clients' unique challenges. With a world-wide network of experienced operators, world-class consultants, former regulators and industry authorities, Alvarez & Marsal helps corporates, boards, private equity firms, law firms and government agencies drive transformation, mitigate risk and unlock value at every stage of growth.
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CONTACT:
Louise Coleen Magahis
Hanover Middle East
