Public Policy Document

The UAE National Clusters Policy establishes a unified national framework to develop competitive and high-impact economic ecosystems across the country. It strengthens national competitiveness by empowering federal and local entities to build interconnected value chains, enhance productivity, attract investment, and support innovation-based growth. The policy aligns with UAE Vision 2031 and provides the foundation for a coordinated national approach to ecosystem development, enabling each Emirate to contribute to and benefit from a shared national competitiveness agenda.

Clusters are geographic concentrations of firms and supporting institutions that operate within a related set of economic activities. They bring together producers, suppliers, service providers, training and research institutions, and government entities that contribute to the same value chain. Effective clusters strengthen coordination, improve access to skills and technology, and accelerate upgrading by creating an environment where firms and institutions benefit from working closely together.

Global experience shows that competitive economies are built on integrated ecosystems rather than isolated sectors. Clusters enable firms to upgrade capabilities, access shared infrastructure, adopt advanced technologies, and collaborate across value chains. A national cluster framework ensures that each Emirate develops its strengths while contributing to a connected, diversified, and resilient UAE economic model.
 

• Increase national GDP by AED 20–30 billion annually through high-value ecosystem development.
• Increase government revenues by AED 2–3 billion by expanding productive activity and investment flows.
• Boost foreign trade by AED 15 billion through higher export capacity and market integration.
• Create more than 20,000 high-skill jobs in priority clusters.
• Strengthen SME competitiveness, supply-chain participation, and innovation adoption.
• Support balanced economic development across Emirates by enabling regionally anchored clusters.
• Enhance national competitiveness through innovation, talent development, and advanced capabilities.
   

Priority Clusters:

Initial clusters were selected based on economic potential, strategic relevance, ecosystem readiness, and value-chain depth:

• Food Inputs, Services and Processing.
• Financial Services.
• Hospitality and Tourism.
• Analytics and Communication Services.

Additional clusters may be designated based on national assessments and Emirate-level priorities.

Key Components of the Policy
The policy is built around four main components that guide how the UAE develops its cluster ecosystems:

1. National Governance System:The governance structure is designed to bring federal and local entities together with industry under a single framework. The National Clusters Board sets the overall direction, Cluster Boards shape priorities at the cluster level, and Cluster Managers, supported by Working Groups, oversee implementation. This approach ensures alignment and enables strong public–private collaboration.
2. National Clusters Program: Located at the Ministry of Economy and Tourism, the Program acts as the engine for cluster development. It designs cluster strategies, coordinates policies across Emirates, supports SME upgrading, facilitates investment, and drives innovation and talent initiatives. It also provides data and technical support to decision-makers.
3. Standard Model for Cluster Development: All clusters follow a unified development model focused on:
   • Value-chain strengthening.
   • Product and technology upgrading.
   • Sustainability and digital transformation.
   • Applied research and innovation collaboration.
   • Human capital and skills development.
   • Market access and export readiness.

   This ensures consistency while allowing each cluster to adapt to its specific needs.

4. Results and Accountability System: A national monitoring framework measures progress based on productivity, investment, SME participation, innovation outcomes, employment, and export performance. Regular reporting ensures transparency and supports continuous improvement.

1. Globally competitive and innovation-driven clusters operating across Emirates.
2. Stronger FDI inflows, private investment, and export growth.
3. Deeper value chains and increased SME participation in productive activity.
4. Increased productivity and national capabilities in strategic sectors.
5. Greater economic diversification and Emirate-level development.
6. A resilient, future-ready economic structure supported by interconnected ecosystems.
7. Quantified outcomes include: AED 20–30 billion annual GDP uplift, AED 2–3 billion revenue increase, AED 15 billion foreign trade growth, and over 20,000 high-skill jobs.
    

Federal Government Entities, local governments, private sector enterprises, and society.