Starting the implementation of the National Value Added Program on the purchases of all federal government agencies in the country

The Ministry of Industry and Advanced Technology and the Ministry of Finance announced the start of the implementation of the National Value Added Program on the purchases of all 45 federal government agencies, including ministries, federal authorities and institutions, in the context of stimulating the industrial sector in the UAE and enhancing its competitiveness as a priority within the "fifty projects" to support diversification plans The future economy in the UAE.

This came during a media briefing organized in the capital, Abu Dhabi, in the presence of His Excellency Mohammed bin Hadi Al Husseini, Minister of State for Financial Affairs, and His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, followed by an introductory session on the mechanisms of implementing the program on all types of purchases / services and products / for all federal agencies, which was attended by His Excellency Omar Suwain’ Al-Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology, along with a number of officials and representatives of the two ministries.

 His Excellency Mohammed bin Hadi Al Husseini, Minister of State for Financial Affairs, affirmed the commitment of the Ministry of Finance to support and implement all programs and projects that would enhance the country’s global competitiveness and achieve growth and sustainability of the economic system, noting in this regard that the National Added Value Program is one of the priorities among the fifty projects as It will constitute a lever to support the industrial sector, upgrade its capabilities, and enhance its contribution to economic diversification efforts.

His Excellency said: "We worked during the last period with our partners in the Ministry of Industry and Advanced Technology to ensure the efficiency and effectiveness of the procedures that will be developed to implement the program, as we were keen to include the program's mechanisms in the federal government procurement policy and guide, so that the percentage of the national value added is calculated from the total amounts spent by suppliers. Inside the country, the cost of manufacturing, local products and services, the volume of investment, and the appointment and qualification of national cadres.

He added, "We are confident that this step will have direct positive repercussions that contribute to the development of the efficiency of supply chains, and the development of local industries in a manner that consolidates the state's competitiveness in the fields of modern industries."

For his part, His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said: “In line with the vision of the wise leadership to empower national industries in the country, enhance their competitiveness and expand their growth and development prospects, the National Value Added Program was launched at the federal level in 2021, and the accession witnessed The program has attracted a large turnout from the largest institutions and companies in the country, which has reached 13 entities so far, to benefit from the integrated strategy of the Ministry of Industry and Advanced Technology and the enabling and supportive national programmes.

His Excellency added that the implementation of the program in coordination and cooperation between the Ministry of Industry and Advanced Technology, the Ministry of Finance, and private sector institutions will contribute to stimulating the growth of the industrial sector and enhancing its competitiveness as one of the priorities of the "50 projects", and achieving benefit for the industrial and productive sectors, thus enhancing the role of the industrial sector in supporting plans Economic diversification and preparation for the future, explaining that the National Added Value Program is a mainstay in supporting these national trends.

His Excellency pointed out that the implementation of the National Value Added Program at the federal level contributes to developing the advantages of national products and services and gives them more space for development and growth and the application of the innovations of the Fourth Industrial Revolution and advanced technology solutions, as well as providing sustainable solutions to the growing demand for highly efficient supply chains, and this will be positively reflected on Increasing the demand for the products and services of Emirati companies and suppliers, promoting the capabilities of these companies, and attracting more foreign investments to the industrial sector in the country.

 Officials from the two ministries provided information on the procedures and requirements for implementing the program at the federal level and its positive repercussions on promoting the growth of the national economy, explaining the nature of the partnership between the two ministries in the application, and the advantages that companies joining the program will obtain through their work with federal government agencies.

 His Excellency Abdullah Al Shamsi, Assistant Undersecretary for the Industrial Development Sector at the Ministry of Industry and Advanced Technology, presented an introduction to the National Added Value Program and the benefits of joining it, as well as its importance for the national economy, the responsibilities of the National Committee for the program, and the incentive system provided by the Emirates Development Bank, the strategic partner of the ministry. The program will raise the demand for Emirati services and products from 33 billion dirhams currently to 55 billion dirhams by 2025, and this is accompanied by an increase in the number of approved suppliers to 7,300 companies.

Al Shamsi added: “The National Value Added Program contributes to meeting the requirements of participating government and private agencies, enhancing their ability to reach their needs for services and products of the highest quality, reducing challenges related to supply chains, and meeting the growth needs of local suppliers and manufacturers by increasing the demand for companies’ products and services. UAE, promoting its capabilities and attracting more foreign investments to the industrial sector in the country. His Excellency noted that in order to encourage companies to obtain the National Value Added Certificate, the Emirates Development Bank, under an agreement with the Ministry of Industry and Advanced Technology, will provide competitive financing capabilities and solutions to local suppliers and member companies of the program, in a way that will raise the demand for Emirati services and products.

For her part, Her Excellency Maryam Mohammed Al Amiri, Assistant Undersecretary for Public Financial Management Affairs at the Ministry of Finance, confirmed that the Ministry of Finance implemented the requirements of the National Added Value Program by amending the procurement policy in the federal government and reversing the required amendments to the federal financial system to be applied to all purchases.

She stressed that the digital procurement policy will achieve several goals within the framework of supporting the national added value program, foremost of which are the instructions for the program, adding the requirements of the national added value as a basic criterion for evaluating suppliers and giving them an additional competitive advantage.

She added that the policy was amended to ensure that these requirements are reflected in the current procurement system, as well as the new digital platform, noting that an introductory workshop was held for the federal authorities to familiarize them with the amendments to the government procurement system regarding the implementation of the program.

She explained that the ministry aims to enhance the system's ability to keep pace with the requirements of the digital government at the stage of evaluating the bids by requesting the suppliers of all federal agencies and submitting the national value-added certificate for tenders related to the products or services mentioned within the framework of the national added value program and giving them a 25% weight when evaluating the bids. Based on that.

She pointed out that the new guidelines for the program are consistent with achieving the digital transformation of the procurement platform, simplifying the procedures for suppliers, reducing requirements for fees, as well as introducing electronic auctions to achieve the best prices in the easiest way, in addition to motivating small and medium-sized companies by granting them special privileges to participate in bidding.

After that, the session witnessed a review of the nature of the National Added Value Program in terms of being a certificate issued to companies in which their contribution to the local economy is evaluated, and they are given preference in awarding contracts and purchases. products, services, capital investment in the country, spending on salaries and employee expenses, and advanced technology.

The effects of the program on the strategic transformation of supply chains, developing industries, adding new local services, contributing to import substitution, stimulating and attracting investment, diversifying the economy, increasing domestic production, and creating new job opportunities for citizens in the private sector were also discussed.

In response to the journalists’ questions, the speakers explained the steps to join, starting with the issuance of audited financial statements based on IFRS, through filling out the certificate application form in accordance with the guidelines and the latest financial statement, choosing one of the certification companies authorized to issue the certificate and submitting requirements, and using The certificate is in accordance with the procedure followed in each participating entity.

They also indicated the required time period and its difference from one company to another and from one supplier to another according to the size of the company and the number of its employees, and the company's readiness in terms of submitting the required documents to certification companies.

The officials also touched on the fees for joining the program, the validity period of the certificate, and other technical and procedural details.

The UAE government had launched, as part of the "50 projects", the national value-added program at the state level, which will be implemented under the supervision of the Ministry of Industry and Advanced Technology, to contribute to increasing the demand for products and services of Emirati companies and suppliers, promoting the capabilities of local companies, and attracting more foreign investments to The industrial sector in the country.

 The National Added Value Program contributes to achieving positive effects on the industrial sector in the country and the national economy, as it enhances the business environment in the industrial sector, which was clearly demonstrated by a number of large companies localizing the value chains of their businesses and achieving remarkable success in this aspect, as well. Contributes to the development of investment in industrial and economic activities related to it to achieve comprehensive economic growth in the country's gross domestic product.

Since the announcement of the implementation of the national value-added program at the federal level within the "50 projects", the Abu Dhabi National Oil Company "ADNOC", the Abu Dhabi Department of Economic Development, Aldar Properties, the Emirates Nuclear Energy Corporation, Mubadala, and Emirates Telecommunications Company have joined the program. - Etisalat, Abu Dhabi National Energy Company (TAQA), Emirates Steel Company, Emirates Global Aluminium, Edge Group, Etihad Rail Company, Tawazun Economic Council - Tawazun, and Sharjah Investment and Development Authority - Shurooq.

 The National Value Added Certificate is issued after ensuring compliance with the standards through the certificate awarding companies that provide independent and impartial evaluation services. Companies with higher results in the national value added will be preferred in procurement and service tenders, in addition to providing a large number of certificate awarding companies at the state level. .

Follow our latest local and sports news and the latest political and economic developments via Google news