Over USD 27.23 billion has been redirected to the UAE’s local economy since the country’s Ministry of Industry and Advanced Technology (MoIAT) and Abu Dhabi National Oil Company (ADNOC) launched major in-country value programs to support domestic industries.
Speaking at the ‘Make in the Emirates Forum’, Abdulla Al-Shamsi, Assistant Undersecretary of MoIAT, said more than USD 14.43 billion of investment was redirected to the local economy in 2022 alone, thus registering an increase of 25% year-on-year.
“The National In-Country Value Program is a nationwide program that speaks one language across many different sectors. It’s one methodology and this is something we’re very proud of because it benefits the private sector and when the private sector sees this it helps them prepare, invest, and spend,” Al-Shamsi said.
The forum heard how the National ICV Program is “functioning well and accelerating,” while being informed about how industrial zones were playing a critical role in the country’s sustainable industrial development and broader economic prospects.
During the event, local industrial leaders also spoke about how they were utilizing alternative energy resources such as solar and hydrogen to reduce their carbon footprint in the region.
The second edition of the ‘Make it in the Emirates Forum’ concluded on the last week of May 2023, with the UAE showcasing its unique value proposition to international investors.
Investors were invited to explore opportunities and competitive advantages for the domestic economy, with panel discussions focusing on the National In-Country Value (ICV) Program, the role of industrial zones, competitive financing as a key enabler and local talent in the private sector.
The UAE’s industrial exports reached USD 47.6 billion in 2022, growing 49% in 2021. The industrial sector’s contribution to GDP rose to USD 49.5 billion in 2022, a 38% increase in 2020.
The ‘Make it in the Emirates Forum’ gets organized by the Ministry of Industry and Advanced Technology in partnership with the Abu Dhabi Department of Economic Development (ADDED) and ADNOC.
On the first day of the forum, the UAE government announced USD 2.7 billion in industrial off-take agreements, thereby building on the USD 29.9 billion of off-take agreements announced at the 2022 edition of the event.
The agreements, which aim to boost the growth of the emirate’s manufacturing base, cover various areas including manufacturing, banking, oil and gas, pharmaceuticals and health care, stated the Abu Dhabi Investment Office (ADIO)
The forum also saw ADIO forming a partnership with Abu Dhabi Islamic Bank to support the UAE’s industrial sector’s growth.
These developments came amid the World Bank projecting that the real GDP of the UAE would grow by 2.8% in 2023, as the non-oil sector is expected to achieve strong growth of 4.8%, driven by robust domestic demand, particularly in tourism, real estate, construction, transportation, and manufacturing sectors.
While announcing the new World Bank Gulf Economic Update (GEU) titled, “The Health and Economic Burden of Non-Communicable Diseases in the GCC” in May 2023, the World Bank officials also said that UAE’s current account balance will rise to 11.7% in 2023, as well. The report expected the UAE to achieve a surplus in public finances of 6.2% in 2023.
Image Credits: moiat.gov.ae