"Abu Dhabi Economy": starts from 5 dirhams per square meter, with long-term lease contracts
Increasing localization is a condition for benefiting from lower prices for leasing industrial lands
The program promotes investments in the industrial sector and the provision of industrial lands at competitive prices.
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Rashid Abdul Karim Al Balushi: "Abu Dhabi aims to build an industrial base whose title is quality and excellence, and to develop industries according to the best international technologies."
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The Department of Economic Development in Abu Dhabi confirmed that the “Industrial Land Rental Rates Stimulus” program in the industrial sector, which provides the use of industrial land at reduced prices starting from five dirhams per square meter, under long-term lease contracts, includes seven main industries: logistics services, industries food, energy, health care, biopharmaceutical industry, information and communication technology, heavy industry.
Terms and Conditions
The Undersecretary of the Department of Economic Development in Abu Dhabi, Rashid Abdul Karim Al Balushi, revealed in statements to «Emirates Today» that in order to obtain the incentives and privileges provided by the program, companies and industrial facilities must meet some conditions and criteria that aim to achieve the strategic economic goals of the Emirate of Abu Dhabi, most notably: Increasing Emiratisation rates, implementing plans to develop and enhance the skills and competencies of the workforce, as well as providing effective work plans, manufacturing techniques and outputs that depend on sustainability in doing business, and relying on modern technological means.
Competitive prices
Al-Balushi stressed that the program promotes investments in the industrial sector, and provides industrial lands at competitive prices, to reduce the cost of starting and operating businesses, which contributes to reducing the cost of products and increasing their competitiveness in global markets, and makes manufacturers focus more on investing in the quality of products and producing them according to The best international standards, thus enhancing its competitiveness compared to other products.
Al-Balushi expected an increase in the demand for industrial lands from companies that meet the conditions for benefiting from the program, during the coming period.
Support competitiveness
Al-Balushi said that Abu Dhabi's main goal from this program is to support competitiveness, build an industrial base that is characterized by quality and excellence, in addition to developing industries according to the best international technologies.
He explained that the Department of Economic Development in Abu Dhabi launched the “Industrial Land Rental Rates Stimulation” program, as part of the “Abu Dhabi Industrial Strategy” initiatives that it launched last June, based on an analytical study and extensive discussions conducted by the Abu Dhabi government with private sector companies and institutions, to achieve various gains in various sectors. Economic sectors, by providing competitive rates for renting industrial lands.
He stressed that the launch of the program constitutes a qualitative addition to a package of support programs provided by the emirate to support businesses, provide appropriate conditions for achieving growth, and improve the management of capital expenditures and cash flows for industrial companies.
Intelligent manufacturing
On the recent launch of the Abu Dhabi Smart Manufacturing Index, Al Balushi said that the index is part of a series of programs and initiatives launched by the department with the aim of achieving the objectives of the emirate's industrial strategy by providing a "road map" and a guide that contributes to leading industrial establishments towards accelerating the adoption of applications and technologies of the revolution. The fourth industrial sector, in order to serve the endeavors of the local industrial sector to keep pace with the best international practices, standards and trends, within the activities of the manufacturing industry.
He added that the index provides a serial method that extends through several stages, starting with an assessment of the current status of the industrial facility, ways to raise the level of readiness, identifying the necessary steps to develop the facility, and reviewing the best productive solutions to help it reap the fruits of the transition to advanced industrial approaches, pointing out that Abu Dhabi is counting on « The “Smart Manufacturing Index” aims to provide factories with technical knowledge, and theoretical and practical frameworks that support transformation processes towards the applications of the Fourth Industrial Revolution.
Al-Balushi stated that the Abu Dhabi Economic Department recently launched, in light of the transformations taking place in the energy markets, the “energy tariff stimulus” program in its new form, by expanding the scope of the program and supporting a larger segment of the industrial sector, by providing preferential prices for gas and electricity, based on criteria that include impact Economic for industrial facilities, localization, and energy management.
The Undersecretary of the Abu Dhabi Economic Department said that the contribution of manufacturing industries to the gross domestic product of the Emirate of Abu Dhabi, at constant prices, at the end of the first half of this year 2022, amounted to 8.1%, while the growth rate of the sector during the same period reached 10.2%.
He stated that the Abu Dhabi government's investment of 10 billion dirhams will double the size of the manufacturing sector to 172 billion dirhams, and increase non-oil exports by 143%, or 178.8 billion dirhams, in addition to providing 13,600 job opportunities by 2031.
Abu Dhabi Industrial Strategy
Abu Dhabi's industrial strategy is based on six main initiatives: the circular economy, the fourth industrial revolution, the development of industrial competencies and talents, the development of the industrial sector system, the substitution of imports and the strengthening of the local supply chain, and the development of the value chain.
These initiatives aim to drive growth in seven key industrial sectors: chemical industries, machinery and equipment manufacturing, electrical industries, electronic industries, connectors industry, food and agricultural industry, and pharmaceutical industries.
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