Directing 42% of the purchases of federal agencies and major national companies towards the national product
The "national added value" to stimulate national industries and enhance the competitiveness of the UAE economy
Sultan Al Jaber: “We are working to build an interconnected industrial system, which will enhance our position as a primary destination for innovators and global companies.”
Stimulating the industrial sector and enhancing its competitiveness is a priority within the "50 projects".
Photography: Ashok Verma
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As part of the "50 projects", the UAE government launched the national value-added program at the state level, which will be implemented under the supervision of the Ministry of Industry and Advanced Technology, and 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 sector. industry in the country.
The program aims to increase the demand for local content and services by redirecting more than 42% of purchases and contracts expenses to the national economy. For development by providing capabilities and competitive financing solutions to local suppliers and foreign companies that are members of the program, in a way that will raise the demand for Emirati services and products from 33 billion dirhams currently to 55 billion dirhams by 2025.
For the first time at the state level, the Ministry of Industry and Advanced Technology will provide a database open to participants in the National Added Value Program, to help suppliers and entrepreneurs know the supply and demand system in the industrial sector, which contributes to directing their efforts to provide the most demanded industries and their raw materials, thus improving their performance. and supports opportunities for growth, expansion and prosperity.
Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said: “We have a successful local experience with the implementation of the National Added Value Program in Abu Dhabi, through which we were able to redirect about 88 billion dirhams to the local economy. Today, after the success of our experience at the local level, we start implementing it at the state level. Returns and benefits for national companies and local products.
He stressed that the leadership's directives focus on stimulating the industrial sector and enhancing its competitiveness as a priority within the "fifty projects" due to the sector's importance in supporting economic diversification plans and preparing for the future, and therefore the National Added Value Program is a key pillar in supporting this trend and achieving the desired goals.
He added: “We certainly expect significant positive effects of the National Value Added Program on the national economy, as it enhances its competitiveness by supporting the growth of small and medium-sized companies, facilitating access to finance, enhancing the ability to attract investments and advancing the economic and social development of the country, and we will focus our efforts on creating an ideal system. It helps companies focus on implementing their projects and programs in a society that stimulates their activity and supports their development plans.”
The National Added Value Program is one of the main pillars of the national strategy for industry and advanced technology, which aims to enhance the competitiveness of the industrial sector locally, regionally and globally. The program aims to support the national economy by reducing dependence on imports in priority sectors and products.
The program will also stimulate the industrial sector by adopting advanced technology and the solutions of the Fourth Industrial Revolution, with the aim of improving production capacity and upgrading the quality of products to keep pace with government procurement requirements.
In addition to this, international suppliers and companies are encouraged to increase spending on research and development, which contributes to enhancing the competitiveness of UAE industries in the local, regional and global markets.
The percentage of the national added value of the participants in the program is calculated based on a set of criteria that will ensure the integration of implementation mechanisms, where the first criterion is concerned with the cost of manufacturing or spending on products and services within the country, and the second criterion is concerned with the volume of investment in fixed assets, and the third criterion focuses on Measuring expenditure on recruitment, qualification and development of human capabilities of national and resident cadres working in the country, while the fourth criterion revolves around investment in advanced technology, research and development.
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 given preference in procurement and service tenders, in addition to providing a large number of certificate awarding companies at the state level. .
With the aim of facilitating all parties wishing to join and participate in the program, the Ministry of Industry and Advanced Technology will issue a detailed guide to the application criteria that includes a mechanism for calculating the “weight” of the percentage of the national value added for procurement contracts, and a plan to improve the national added value, in coordination with the National Program Committee, which was approved Finally, from the Council of Ministers, which includes the Ministry of Industry and Advanced Technology, along with a group of federal and local authorities and national companies.The program will also provide many benefits to the participants according to the percentage of their contribution to the program within the framework of national integration, for example, giving them preference on specific conditions in the tenders for all purchases of federal agencies and applicable national companies, and the participants’ access to investment advantages inside and outside the country, including giving them advanced competitive financing solutions. To promote business through the Emirates Development Bank and provide support to them in the context of promoting their exports through the Union Export Credit Company.
Participants who wish to increase the production efficiency of their institutions will benefit from the programs of the Ministry of Industry and Advanced Technology for the Fourth Industrial Revolution and its solutions, in addition to many other advantages that the ministry will announce in the coming period.
Advantages of joining the program
The program provides all its participants with opportunities for growth by improving the framework of their operations and enhancing the attractiveness of their locally manufactured products, in order to support the state's directions in creating thousands of new jobs and raising the contribution of the industrial sector to the GDP.
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