UAE Minister of Industry and Advanced Technology Dr Sultan Ahmed Al Jaber said that the vision and directives of President Sheikh Mohamed bin Zayed Al Nahyan constitute the foundation of the national industrial strategy.
The strategy will contribute to a diversified and sustainable economy and leverage the UAE’s value proposition and competitive advantages to build a strong industrial sector, enhance self-sufficiency and localize supply chains, Dr Al Jaber made the remarks during a keynote address at the ‘Make it in the Emirates’ Forum.
The Forum convenes leading national companies, manufacturers, local and international industrial investors and financial institutions.
He said, “The COVID-19 pandemic and recent geopolitical challenges have disrupted our supply chains and affected the global economy, an experience from which we extracted many lessons.”
The minister said, “One of the most important lessons is that regardless of global economic conditions, enhancing self-sufficiency and resilience in vital sectors such as food, healthcare and the sectors critical to ensuring business continuity and economic growth is critical.”
Noting that the ministry is guided by the directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, he said, “The UAE, with its strong will, resources and effective policies is capable of building a global economic base. By achieving self-sufficiency in vital industries, we will enhance the resilience of our economy and safeguard the UAE from global economic challenges.”
The minister said, “We worked on launching a national industrial strategy in consultation with government and private sector companies, investors, and financial institutions through transparent dialogue and various workshops, studies and international and regional benchmarking.”
He said the country’s industrial strategy aims to create an attractive business environment for local and international investors, support the growth of national industries and enhance their competitiveness.
It aims to strengthen the UAE’s position as a global destination for industries of the future.
“Our objective is to safeguard our national progress, leverage the legislative system, attract investments, support local manufacturing and create growth opportunities, with a goal of empowering our national economy and increasing the industrial sector’s contribution to our GDP to over AED300 billion by 2031,” Dr Al Jaber said.
He said, “A key enabler of our work has been to identify priority sectors which includes food and agriculture, pharmaceuticals, petrochemicals, heavy industries such as aluminum and iron, defense, electrical equipment and appliances, and future industries like space and clean energy such as hydrogen.”
The minister said, “We have worked closely with the Emirates Development Bank to provide competitive financing supporting the growth of industrial companies. So far the bank has provided 2 billion dirhams to priority sectors.”
He said, “Following the directives of Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs during the latest edition of the World Government Summit, to support the nation’s industrial development, the ministry increased its efforts to develop our industrial ecosystem.”
Dr Al Jaber said, “The Ministry introduced important programs to standardize procedures, reduce duplication, reduce fees, provide a platform for entrepreneurs and start-ups, and open new markets in cooperation with our colleagues at the Ministry of Economy and the National Departments of Economic Development.”
He added, ” UAE entered into an Industrial Partnership with Egypt and Jordan. The partnership leverages the competitive advantages of these nations to promote industry and achieve sustainable economic development.”
The minister said, “The partnership will provide export opportunities for manufacturers and focuses on five industrial sectors, including food and agriculture, fertilizers, pharmaceuticals, textiles, minerals and petrochemicals.”
Another initiative was the launch of the National In-Country Value (ICV) Program. The program aims to redirect a large amount of purchase value of major companies and government agencies into the local economy by providing local firms with a competitive advantage in the government procurement process and access to capital and smart financing solutions.
This will contribute to developing local industry, strengthen supply chains, substitute imports and create jobs.
Presently 45 government entities, six leading national firms and 5,500 local industrial companies are participating in the program. In its first year, the National ICV Program succeeded in redirecting over AED40 billion into the national economy.
He said that one of the objectives of the Ministry of Industry and Advanced Technology is to leverage local purchasing power to develop the industrial sector, especially through the National In-Country Value Program.
“Therefore, we have cooperated with relevant government agencies, large national companies, investors, manufacturers and various stakeholders in preparing for this forum which today is presenting you with opportunities from a group of leading national companies that have significant purchasing power,” Dr Al Jaber said.
He said, “They include ADNOC, ADQ Holding, Emirates Global Aluminium, TAQA, Etisalat, Etihad Airways, Edge, Mubadala, Emirates Steel, Pure Health, Strata, Aldar, Emirates Nuclear Energy Corporation, Etihad Rail, and Masdar, among others.”
This data will help manufacturers increase local production to meet the needs of large national companies.
He said, “These national companies have committed to allocating nearly AED110 billion in potential purchase agreements for local manufacturers. The forum’s sessions and exhibition will provide details of these products and investment opportunities. This move will create opportunities for the growth of the national industrial sector, adding at least AED6 billion annually to GDP.”
Dr Al Jaber said, “The UAE enjoys many advantages, the most important of which is a wise and supportive leadership that always looks to the future with a positive outlook, provides and focuses on ensuring stability and have given directives for a flexible and encouraging environment to achieve our goals.”
He said, “We enjoy a highly skilled workforce, energy resources, raw materials, strategic location, advanced infrastructure, transparent regulations and laws, reliability and credibility, competitive financing, an excellent quality of life in a diverse, tolerant and secure society, strategic partnership agreements and cooperation and trade agreements with various countries around the world. All of which have enabled us to develop our national industry, attract investments, build partnerships, and enter new markets.”
He said they are working with relevant authorities on additional enablers and features to enhance the ease of doing business and reduce costs. “We will hear from some of our partners today and in the next few weeks about some of these plans.”
The Minister said, “I invite everyone here to take advantage of the opportunities the forum offers through the plans provided by our leading national companies. These include their current product procurement pipeline, their projected demand for various products, materials and services, as well as their commitment to allocate part of that procurement to local suppliers. All these efforts will contribute to developing existing industries and creating new ones.”