ABU DHABI – The Industrial Development Bureau (IBD), part of the Abu Dhabi Department of Economic Development (ADDED), has confirmed the strong growth of the emirate’s industrial sector in the first half of 2022.
New industrial licenses (Rowad) reached 136, and those in transition to the construction phase reached 62, as the number of licenses moved from the construction phase to the production phase reaching 44 factories. The total number of active licenses in production was 866 at the end of June 2022, according to IBD’s manufacturing report.
The total value of capital expenditure (CAPEX) of industrial establishments that have moved into the production stage increased to AED 3.1 billion from AED 1.03 billion in the same period last year.
The report revealed positive indicators, including the growing number of government tenders awarded to companies holding Country Value Certificates (ICVs), under the Abu Dhabi Local Content Program (ADLC) , reaching 466 tenders, compared to 95 tenders in the first half of 2021. The value of tenders won by ICV holding companies increased from AED550 million in the first six months of 2021 to 970 .5 million AED in the first half of 2022.
Local content value tenders account for 41.9% of tenders awarded to companies with ICV certificates, meaning that AED407 million was injected back into the local economy to support local products , compared to AED215.2 million in the first half of 2021.
During the first half of 2022, tenders awarded to ICV holding companies accounted for 56.1% of the total 827 government tenders, with 72% of the total value of government tenders, amounting to 1 .33 billion AED.
The ADLC program contributes to the growth of the emirate’s GDP, improving the attributes of the knowledge economy, the use of technology and increasing the rates of emirateization.
The number of highly skilled workers in factories registered with the Electricity Tariff Incentive Program (ETIP) reached 41% of the total.
The IDB’s H1-2022 report also reflected growing interest in the Golden List initiative, developed to increase demand for locally made products through government procurement. The number of manufacturers who joined the list exceeded 127 at the end of June 2021, an increase of 14.4% compared to the 111 establishments on December 31, 2021. The number of products registered in the list increased by 33.9% for reach 655 products out of 489 same period last year The report revealed that the total value of duty waivers granted to Abu Dhabi manufacturers in the first half of 2022 reached AED 1.02 billion, 5 news factories that have obtained Electricity Tariff Incentive Program (ETIP) certificates. ETIP aims to increase the productivity of industrial installations and improve their economic impact and energy efficiency, by offering competitive electricity tariffs.
Rashed Abdulkarim Al Blooshi, Under Secretary of ADDED, said: “The strong indicators in the IDB’s H1-2022 report reflect the strength of the manufacturing sector in Abu Dhabi, which is a key priority to achieve our economic diversification goals. The industrial sector is the largest contributor to Abu Dhabi’s non-oil GDP in addition to its role in creating jobs and enhancing knowledge and innovation-driven initiatives”.
“We are building on these successes and will continue our efforts to ensure the ease of doing business, support industrial finance and attract FDI in order to achieve the objectives of Abu Dhabi’s recently launched industrial strategy to strengthen the position of the industry. emirate as the most competitive industrial hub in the region. To this end, Abu Dhabi is investing AED10 billion in six transformation programs to more than double the size of the manufacturing sector to AED172 billion by 2031 and create 13,600 new skilled jobs, with a focus on Emirati talent,” Al Blooshi added.
As part of the IDB’s efforts to ensure compliance of industrial establishments with the laws, regulatory framework and licensing criteria as well as to provide technical and administrative guidance to improve performance, 741 field visits were carried out covering 576 industrial facilities, including 417 in Abu Dhabi, 143 in Al Ain and 16 in Al Dhafra. The total investments of these facilities exceed AED 2.5 billion.
The Industrial Development Office is expanding the scope of the self-monitoring program for facilities with high levels of compliance to include more than 80 industrial facilities through 2023, up from 43 by the end of June 2022. This will be achieved by improving skills of workers, and further advance the expertise of UAE nationals in aspects related to senior management and corporate governance.
Sameh Al Qubaisi, Managing Director for Economic Affairs at ADDED, said, “The IDB is implementing initiatives to achieve the objectives of Abu Dhabi’s industrial strategy. The smart manufacturing program assessed the readiness of 76 facilities to transition to Industry 4.0 technologies. Additionally, we are strengthening their partnerships with leading global players to enable manufacturers to transition to Industry 4.0 and support a circular, smart and sustainable economy.”
To improve the competitiveness of the financing environment, the IDB has signed MoUs with 10 banks including Etihad Credit Insurance, Abu Dhabi Export Office, Abu Dhabi Securities Exchange (ADX) and Maqta Gateway to help improve the financial inclusion of industrial facilities.