Abu Dhabi Department of Economic Development has completed the first phase of the financial ecosystem programme for industrial facilities in the emirate, under which nine companies secured credit insurance to boost their business.
Implemented by the Industrial Development Bureau, an affiliate of Added, the programme seeks to improve the credit environment for the industrial and commercial sectors by motivating banks to compete and provide prominent financing services and products to the economic sectors across Abu Dhabi.
The total value of insured turnover of the nine industrial facilities amounted to Dh2.1 billion ($571 million) since March 2020, Added said in a statement on Sunday. The insured turnover for the metal industry was Dh1.588bn, Dh367m for the plastic and glass industry, Dh100m for construction sector, Dh70m for chemical sector and Dh19m for electrical and electronics industry.
The plan aims to increase competitiveness within the financial sector, enhance the financial ecosystem, increase the economic impact and return of the industrial sector through exports, in addition to increasing access to financing, Mohamed Al Shorafa, chairman of Added, said.
The Industrial Development Bureau is working with the Abu Dhabi Digital Authority to provide a digital platform through which the financial ecosystem programme is implemented through the integrated services system “Tamm”, he added.
“The integration will ease the process for business owners to obtain the appropriate financing for their entities in an easy and accessible manner that is compatible with the nature of their economic activity,” the statement said.
Abu Dhabi has taken various steps to promote self-sufficiency and encourage local manufacturing.
Added introduced the basic industries project aimed at making the emirate “self-sufficient in the production of basic and consumer commodities” in July last year. The aim is to increase the private sector's contribution in meeting local demand and to encourage exports. The project, which is being undertaken by the Industrial Development Bureau, will seek to strengthen investment in four major sectors of food production, medical supplies, power generation and important materials such as iron and cement.
In its second phase, which starts early next year, the financial ecosystem programme aims to secure export credit insurance for 28 industrial facilities in Abu Dhabi, with a total turnover value of Dh7.5bn, including metal, electrical, chemical, plastic, glass, construction, food, wood, paper, machinery and equipment industries, according to Added.
Abu Dhabi has been taking measures to support its economy, including providing rent rebates and reducing business set-up costs by more than 90 per cent to attract investors and improve the ease of doing business in the emirate.
In July this year, Added, in partnership with other government organisations, cut business set-up fees by 94 per cent to Dh1,000 to attract more investors to the emirate and boost its competitiveness.