The number of new industrial Rowad permits issued in Abu Dhabi increased from 204 to 238 from July 2022 to June 2023, a 16.6 percent rise. 116 new Rowad industrial licenses were issued during H1 2023 alone, an increase of 63.3 percent from the number issued in H1 2022.
$15.36 billion in capital investments made by manufacturing facilities moved to the in-production phase over the year, a growth of 85.7 percent from a year earlier. As a result, total capital investments by manufacturers operating in the emirate grew by $12.42 billion to $384.06 billion in the same period, up from $371.64 billion a year ago.
The number of operational manufacturers in the emirate now stands at 966, up from 922 manufacturers at the end of H1 2022.
Increased activity has been registered across all three stages of Abu Dhabi’s manufacturer licensing journey: Rowad (initial license to establish an industrial company), construction (to begin constructing an industrial facility), and production (to commence operations).
Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Department of Economic Development (ADDED), said the increase in licenses was driven by the Abu Dhabi Industrial Strategy (ADIS).
Preliminary estimates from H1 2023 highlight Abu Dhabi’s industrial growth, with an increase in the number of investors and new industrial projects: • 116 new industrial Rowad licenses were issued in Abu Dhabi in the first six months of 2023 (an increase of 63.3 percent from the 71 licenses issued in H1 2022) • $419.42 million in government tenders were awarded to ICV certified companies in H1 2023 (58.7 percent growth from $263.81 million awarded in H1 2022) • The number of manufacturers enrolled in the Electricity Tariff Incentive Programme (ETIP 1.0) grew to 68 in H1 2023 (up 54.5 percent from 44 manufacturers in H1 2022) • Abu Dhabi companies benefiting from ETIP 1.0 increased their spending on logistics by 19.3 percent compared to H1 2022. The percentage of skilled employees in these companies rose from 41 percent in H1 2022 to 43 percent in H1 2023 • The number of manufacturers that joined the Golden List initiative, which aims to increase the demand for locally manufactured goods through government procurement, increased to 164 establishments (up by 29.1 percent from 127 in H1 2022). • The number of products registered in the Golden List increased to 742 products in H1 2023 (a growth of 4.3 percent from 711 in H1 2022).
Al Zaabi added: “Our manufacturing sector, which contributed 16.4 percent to Abu Dhabi’s non-oil GDP in 2022 and represents 49.9 percent of the total industrial sector in the UAE, is moving from strength to strength, powered by successful implementation of the industrial strategy’s transformational programs to enhance the sector’s competitiveness by increasing access to financing, enhancing ease of doing business, and attracting domestic and foreign direct investments.”
Led by the ADDED, ADIS is doubling the size of the industrial sector to $46.8 billion (AED 172 billion), creating 13,600 new skilled jobs, and increasing the emirate’s non-oil exports to $48.7 billion (AED 178.8 billion) by 2031.
The strategy involves an investment of $2.72 billion (AED 10 billion) across six programs: Talent Development, Industry 4.0, Circular Economy, Ecosystem Enablement, Homegrown Supply Chain, and Value Chain Development.
Over the past year, the Industrial Development Bureau (IDB), ADDED’s industrial sector development arm, has launched several initiatives to deliver on the goals of the strategy, including the Industrial Talent Program, which is helping attract, develop, and upskill human capital in the industrial sector to meet the increased demand for knowledge-based jobs.
IDB launched ‘Tech Champions’, a pilot program to equip employees of food manufacturing factories in Abu Dhabi with Industry 4.0 skills, which graduated its first cohort in May 2023.
IDB also unveiled a smart manufacturing competence center to support sector-wide Industry 4.0 transition, an incentive program to support existing industrial SMEs adopt smart manufacturing methods and processes, and a value chain development program to further enhance the industrial investment ecosystem.
ADDED signed agreements with a number of leading global companies to enhance industry innovation and digital transformation, and nurture emerging talent by training UAE Nationals through in-country, global, and virtual programs on technology, business, and behavioral skills.