UAE launches AED 1 bn industrial fund

The UAE approved a new AED 1 bn national fund to support vital industries and increase localization and supply chain resilience amid ongoing disruptions, Prime Minister Mohammed bin Rashid Al Maktoum said in an X post. The move extends a series of packages unveiled in the past few months, including a AED 1 bn package just for Dubai.

The first phase will focus on goods with scalable local production, including bottled water, dairy, eggs, poultry, bread, flour, vegetable oils, and seasonal vegetables, according to a Dubai Media Office statement, suggesting food security and everyday essentials remain front of mind after recent disruptions.

The F&B sector has been a headline theme since the war began: Policymakers are pushing for more local food manufacturing to reduce reliance on imports, which still account for around 80-90% of the country’s food. At the start of the war, officials had to clarify that the government has a strategic reserve of four to six months of food due to the concerns around supply chain disruptions.

The caveat: The exact measures on offer to those industries were not specified, but the focus seems to be skewed towards new localization efforts.

The government also approved a push to increase the presence of Made-in-UAE products across retailers and e-commerce platforms while expanding the National In-Country Value Program across all federal entities and national companies. The broader goal is to fully localize more than 5k vital products.

The goalposts: The fund is aimed at “advancing the localization of vital industries, strengthening supply chain resilience, and accelerating the adoption of AI technologies in production, operations and planning,” Al Maktoum said.

Elsewhere on the relief front: Startups in Sharjah

Sharjah launches another wartime buffer for startups: Sharjah Entrepreneurship Center (Sheraa) launched a AED 5 mn Entrepreneurs Resilience Fund offering non-dilutive, non-repayable grants and fast-tracked support for Sharjah-based startups and SMEs, according to a press release. The fund targets businesses in sectors like manufacturing, food security, and healthcare, while recipients will also receive mentorship, market visibility, and operational support.

This adds to a widening UAE relief push targeting smaller businesses, where cashflow shocks are often felt fastest during disruption. Recent measures have included rent relief, payment deferrals, and lease freezes for SMEs at Dubai South, broader incentives for freezone firms, alongside waived setup fees and more than AED 10 mn in SME incentives via Qashio. Dubai Healthcare City also launched cashflow relief for operators, while the CBUAE unveiled a resilience package for local lenders.

Tourism has been another priority area

Last week, tourism players in Ajman were given a boost after the emirate rolled out a support package including a six-month deferral of tourism fees, flexible payment options, and fine exemptions, alongside museum entry at no charge and waived exhibition participation charges through year-end.

A federal tourism package is also in the works as authorities look to cushion a sector that made up 13% of GDP in 9M 2025 but has already seen hotel occupancy slump and some properties temporarily close.