KHALED AL KHAWALDEH (ABU DHABI)
Dr. Sultan Ahmad Al Jaber, Minister of Industry and Advanced Technology, kicked off the “Make it in the Emirates” conference with the announcement of more than Dh40 billion of new incentives, investments, and initiatives to support the development of the country’s industrial sector.
“Helping the UAE and industrial ecosystem, enabling the industrial community, creating more investment opportunities and strengthening our economy’s resilience; when we do that, we want to ensure every step of the way we enable and enhance the self-sufficiency of our economy and our supply chains,” Dr. Al Jaber told a large number of public and private sector players gathered at the Abu Dhabi Energy Centre on Monday.
Dr. Al Jaber announced an additional Dh23 billion for guaranteed procurement opportunities for local manufacturing, raising the total value to Dh143 billion for over 2,000 products. This would be funded by ADNOC, providing Dh20 billion, and PureHealth Dh3 billion.
Moreover, an additional Dh20 billion will be made available in new investments in the sector. This coincides with the launch of Dh1 billion in Co-Lending Finance opportunities for SMEs working in the industrial space provided by Emirates Development Bank and commercial banks.
Dr. Al Jaber also announced an initiative to provide competitive electricity rates for industrial companies in Ajman, Ras Al Khaimah, Umm Al Quwain, and Fujairah, in collaboration with the Ministry of Energy and Infrastructure, and the Federal Electricity and Water Authority.
Finally, Dh370 million will be made available from the Emirates Development Bank for startups and SMEs who are innovating and utilising Artificial Intelligence.
Dr. Al Jaber said the new incentives and investments would continue the legacy of success that the country’s industrial sector had been experiencing since 2020. The contribution of the industrial sector to the Gross Domestic Product (GDP) reached Dh197 billion, an increase of 49% compared to 2020. In his speech, he highlighted the 60% increase in the UAE industrial exports since 2020, rising to a value of Dh187 billion in 2023. Moreover, flexible financing solutions also rose 70% for the sector, reaching a value of Dh6 billion compared to 2022. Dr. Al Jaber emphasised the importance of developing and growing the proportion of high-tech and more sophisticated manufacturing operations.
“One of the most important strategic directions we want to focus on in the upcoming period is the development of smart manufacturing and artificial intelligence applications in all manufacturing processes. This will be the main driver of innovation, efficiency improvement, cost reduction, and enhancement of productivity and competitiveness in the next stage of the country’s economy,” he told the crowd.
Previous incentives for high-tech industries through financial solutions, amounting to Dh1.5 billion last year, saw the value of high-tech products produced increase from Dh2.9 billion in 2020 to Dh3.5 billion in 2023.
Moreover, the UAE advanced five positions to rank 37th in the 2023 United Nations Global Technology Readiness Index. Additionally, the UAE topped the regional rankings in the “Competitive Industrial Performance Index” and the “Index of Quality Infrastructure and Sustainable Development”.
“As a result of the vision and support of our leadership, together with our collective efforts, we are starting to see real, tangible, positive, sustainable socio-economic impact across our economy,” Dr. Al Jaber said.