Abu Dhabi will invest AED 10 billion to boost industrialization - Arab Guardian

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30/06/2022

Abu Dhabi will invest AED 10 billion to boost industrialization

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office, launched the Abu Dhabi Industrial Strategy. This strategy is to make the emirate the most competitive industrial hub in the region. AED10 billion will be invested across six transformational programmes to more than double Abu Dhabi’s manufacturing sector to AED172 billion by 2031 through increased access to financing, improving ease of doing business, and attracting foreign direct investment.

Abu Dhabi will invest AED 10 billion to boost industrialization

By the end of these six programmes, 13,600 skilled jobs will be created, with a particular focus on Emirati talent. In addition, Abu Dhabi’s trade with international markets will be boosted by 143 per cent to AED178.8 billion by 2031. In addition to a robust circular economy regulatory framework, Abu Dhabi’s industrial sector is pioneering responsible production and consumption across waste management, parts supply, and manufacturing, contributing to the city’s transition to a smart, circular economy.

A comprehensive industrial strategy is Abu Dhabi’s blueprint for guiding the future of the emirate’s manufacturing sector, which will shape a resilient and diversified economy for decades to come. The roadmap will create the ideal environment for businesses to grow and emerge in accordance with the UAE’s industrial strategy, Operation 300bn. By addressing ever-growing productivity goals, investors will be able to secure future opportunities, protect human capital and boost job creation, and anticipate evolving market conditions and shifting trends.

In addition to enhancing sustainability across the ecosystem in accordance with UAE Net Zero by 2050 and the National Climate Change Strategy, Industry 4.0 will be integrated to drive growth, competitiveness, and innovation in the manufacturing industry. As part of the strategy’s initiatives, the emirate will also become a global hub for future industries, with a focus on seven manufacturing sectors: chemicals, machinery, electrical power, electrical equipment, transportation, agri-foods, and pharmaceuticals.

In six transformational programmes, growth and innovation will be driven, skills will be boosted, the local manufacturer ecosystem will be strengthened, global markets will be easier to access, and the circular economy will gain traction. In order to achieve industry-wide sustainability, the circular economy programme will enable responsible industrial production and consumption. A robust circular economy regulatory framework for waste, recycling, and consumption will be developed and implemented, along with policies that encourage ESG (environment, social, and governance), green procurement, and incentives that improve environmental sustainability.

Using Industry 4.0, businesses can grow faster by leveraging new technologies and processes. Integrating these initiatives will drive competitiveness and innovation. This is supported by several initiatives, including a smart manufacturing funding program, a smart assessment index, and competence centers that provide training and knowledge sharing.

Besides creating 13,000 skilled jobs by 2031, the talent development programme will also assess industry-wide competencies and provide upskilling programmes to fill skills gaps. Job placement programmes will provide rewarding career paths in high-demand areas. The ecosystem’s enablers include a digital geographic information system (GIS) mapping for the search of industrial lands and a quality control process unified by an inspection system. Efforts are also being made to simplify the process of doing business through reimbursement incentive programmes for government fees, land rebates, R&D, and tax. In addition, they are streamlining customs processes and costs, and introducing regulatory reforms around industrial and housing laws.

Homegrown supply chain programmes will boost industrial sector resilience by increasing self-sufficiency and promoting domestic production. An Abu Dhabi Golden List, which promotes the procurement of high-demand, locally manufactured goods, is being expanded; while access to foreign markets will be eased through a comprehensive economic partnership agreement (CEPA) as well as bilateral trade agreements. Foreign aid will also include the purchase and distribution of locally manufactured goods.

A supply chain equity investments fund will be established to encourage local infrastructure development for end-to-end integration. As part of the Abu Dhabi Channel Partners initiative, offsets will be offered to support industrial funding. Further strengthening of the ecosystem will be achieved through infrastructure enhancement programs in Al Ain and Al Dhafrah.