Major companies saved 110 billion dirhams through purchase agreements for local manufacturers
New incentives for manufacturers in the UAE, including lower fees, service tariffs, and concessional financing
The "Make in the UAE" forum is held under the slogan "Investment, Partnership, Growth".
Photography: Eric Arrasas
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Two officials reported that the large national companies in the country committed to saving 110 billion dirhams through agreements to purchase products from local manufacturers, announcing new incentives for manufacturing in the UAE, on top of which are reducing fees and tariffs for services, providing easy financing and entering new markets with a reduced customs tariff.
Purchasing power
In detail, the Minister of Industry and Advanced Technology, Dr. Sultan bin Ahmed Al Jaber, said that “one of the most important objectives of the Ministry of Industry and Advanced Technology is to take advantage of the local purchasing power to develop the industrial sector, especially through the (national added value) program, so the ministry cooperated with government agencies. Related companies, large national companies, investors, manufacturers, and various stakeholders, in preparation for this forum, through which a group of leading national companies with significant purchasing power, such as (ADNOC), ADQ Holding, Mubadala, Emirates Global Aluminium, TAQA, Etisalat, Etihad Airways, Edge, Emirates Steel, Pure Health, Strata, Aldar, Emirates Nuclear Energy Corporation, Etihad Rail, Masdar, and other participating companies, which will showcase more than 300 products and materials that you need through the forum. which can be manufactured locally at competitive prices and approved time schedules,With the adoption of quality standards and specifications as additional manufacturing opportunities for existing and new investors.”
Al Jaber added, in the keynote speech he delivered at the opening of the “Make in the UAE: Investment, Partnership, Growth” forum yesterday, that in cooperation with all parties, clear data has been provided to help manufacturers produce these products locally to meet the needs of large national companies, whether by relying on their potential or by creating partnerships and attracting external investors.
Al Jaber continued: “We are pleased to announce today that large national companies have committed to providing approximately 110 billion dirhams through potential purchase agreements for local manufacturers, and these products and their order details will be announced during the two days of the forum and the accompanying exhibition.
This step will contribute to creating new opportunities for the growth of the national industry, and adding at least six billion dirhams annually to the gross domestic product of the UAE.”
National Acquisitions
He added, "The Ministry of Industry and Advanced Technology is keen to contribute to protecting national gains and benefiting from the legal and legislative system that stimulates and attracts investments in the country, in addition to creating economically feasible opportunities for the growth of the national industrial sector, supporting the local product, reducing dependence on imports, and enabling the national economy to By increasing the contribution to the GDP to more than 300 billion dirhams in 2031 as a first step.”
He explained, "After researching and conducting the necessary studies, priority industrial sectors were identified, including: food, pharmaceuticals, petrochemicals, heavy industries such as aluminum and iron, defense and agricultural industries, electrical equipment and appliances, in addition to future industries in the fields of space, and clean energy such as hydrogen." .
Al Jaber said: “The ministry has launched the (National Added Value) program at the federal level, which aims to redirect the largest amount of purchase value of major companies and government agencies to the local economy.
The program is currently being implemented by 45 government agencies and six leading national companies, with 5,500 local industrial companies participating.
legislative systems
For his part, Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al-Zeyoudi, said in statements on the sidelines of the forum, that "the past period witnessed great efforts to develop legislative systems to support industry, facilitate financing for factories and open new markets," noting that the coming period is expected to witness Opening a large number of new factories and expanding the existing factories.
In response to a question for "Emirates Today", about the existence of incentives for manufacturers in the country, Al-Zeyoudi said, "These new incentives include reducing fees, especially in specialized industrial and economic areas, providing easy financing from various financial institutions, and working with (foreign trade) to enter new markets. With reduced customs duties, to ensure the smooth and easy flow of Emirati products to foreign markets.”
Industrial sector
For his part, the head of the Department of Economic Development in Abu Dhabi, Muhammad Ali Al-Shurafa Al-Hammadi, said in a press statement, “The industrial sector in the country is promising and large, and is the second largest sector in Abu Dhabi’s non-oil GDP, with a total investment of 85 billion dirhams last year, by the government of Abu Dhabi.” Abu Dhabi and the private sector.
Al-Shurafa revealed, in response to a question to "Emirates Today", that "within two weeks, the new industrial strategy for the Emirate of Abu Dhabi will be announced, and new financing methods and programs will be announced to develop the sector of small and medium-sized companies and large companies in the industrial sector in the emirate, and these programs open the field For national and foreign companies to benefit from and use it.”
He pointed out that the strategy will include a set of incentives and new programs to support the industry, including those related to reducing the tariff of certain services, according to each industry, and the focus will be on specific industries, which the government sees as increasing the emirate's GDP and raising its competitiveness, noting that the department's initiatives focus on reducing Cost and business requirements, simplify government procedures, develop industrial zones, and attract more talents.
Expansion and development projects
The CEO of Arkan Group and CEO of Emirates Steel, Eng. Saeed Ghamran Al Rumaithi, said, “The group is one of the main supporters of the industrial sector, as it contributes 12% of the emirate’s industrial GDP, and there are expansion and development projects close to the company, especially in the production of iron coils. To raise the production capacity from 3.5 million to five million tons within two years, which will raise the percentage of contribution to Abu Dhabi’s industrial output, with great support from various government parties.
He revealed a new product of rebar that was recently launched on the market under the name (E600), which constitutes a qualitative leap in the construction sector and saves 16% of the cost of steel in construction in general, in addition to reducing carbon emissions, noting that the group obtained licenses to use it in several emirates. Including Abu Dhabi and Dubai.
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