They confirmed that it has proven successful since the beginning of the pandemic

Officials: Long-term contracts protect local industries from rising prices globally

The officials' statements came on the sidelines of two events organized by the Abu Dhabi Chamber yesterday.

From the source

Officials in the industrial and commercial sectors said that the signing of long-term contracts by industrial companies contributed a lot to alleviating the negative effects of the rise in the prices of raw materials globally, and the consequent increase in costs, noting that this strategy has proven successful since the beginning of the Corona pandemic until now.

They explained to "Emirates Today" that the prices of raw materials are witnessing fluctuations in the global market due to the Russian-Ukrainian war and before it the pandemic, and the accompanying decline in supply chains and problems in the flow of shipping across countries.

This came on the sidelines of the Middle East Manufacturing and Technology Exhibition, and the Middle East Building and Design Week, which kicked off in Abu Dhabi yesterday, in the presence of the head of the Emirate's Department of Energy, Awaidah Murshid Al Marar.

It is noteworthy that the two events are organized by the Abu Dhabi Chamber of Commerce and Industry, and will continue until September 14.

In detail, Muhammad Salem Al-Afari, Senior Vice President of Marketing at Emirates Steel, Arkan, said that the long-term contracts adopted by most local industrial companies play an important role in protecting them from global price fluctuations, so the abundance of raw materials in the local market was not affected despite the decline in chains. Global supply in addition to government decisions and initiatives announced by the state to support the industrial sector and increase its participation in the domestic product.

Al Afari added that local industries have proven their ability to compete in the global market by exporting to more than 60 countries' markets, as well as covering more than 60 to 65% of the local market's needs of rebar at the level of the Emirates.

He stated that the coming period will witness the opening of more markets for other construction products, pointing out that "Emirates Steel Arkan" is one of the first companies to join the value-added initiative and buys with more than two billion dirhams of purchases from the local market.

For his part, Mohammed Al Muhairi, Director General of the Abu Dhabi Chamber of Commerce and Industry, said that Abu Dhabi's industrial strategy revolves around strengthening the emirate's position as a leading regional center in the industrial and manufacturing sectors.

He expected this strategy to contribute to accelerating the efforts of industrial transformation in the UAE and facilitating ways of doing business in the fields of construction, manufacturing and technology.

Al Muhairi explained that government initiatives, such as the "National Value Added Program", "the 300 billion project" and the "Make in the Emirates" and "Made in Abu Dhabi" campaigns, aim to enhance the participation of the private sector in the country's economic development process and localize important stages of the supply chain. products and advancing the endeavors to develop the manufacturing sector.

In turn, the commercial head of Al-Masoud Group, Hani Al-Tanir, said that long-term contracts are the best solution to face price fluctuations, high prices and supply chain delays due to the crises the world is witnessing.

He pointed out that this strategy contributed a lot to freezing the prices of raw materials used in the local industry and not increasing them.

Al-Tanir indicated that the most popular industry at the present time is the iron industry with all its uses, as the local market is witnessing an increasing demand for it.

He pointed out that the large government support for industrial companies shows its result in the expansion of exports and coverage of the local market efficiently and at competitive prices.

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