The Abu Dhabi Department of Economic Development is expanding its Electricity Tariffs Incentive Programme to include small and medium enterprises within the industrial sector, to help them increase their competitiveness and improve energy efficiency.
The programme, part of the Abu Dhabi's Ghadan 21 initiative, will help factories increase their value in the local market and enable them to compete in the regional and international markets, the agency said on Tuesday.
It will also provide competitive electricity prices for the industrial sector, raise awareness about energy efficiency and boost productivity, said Rashid Al Balooshi, the undersecretary of the department.
Abu Dhabi's move to expand the programme comes as the UAE seeks to increase the contribution of the manufacturing sector to the country's economic output to Dh300 billion over the next decade, from the current Dh133bn. The initiative also expects to establish13,500 industrial companies.
The ETIP, which is a joint initiative by Abu Dhabi Distribution Company, Al Ain Distribution Company and the Industrial Development Bureau, provides a discount on industrial tariffs for sites with active industrial licences and which fulfil certain qualifying criteria.
Companies are assessed on the basis of their contribution to Abu Dhabi's economy, their productivity and the installed capacity of the site's electrical supply, according ADDC's website.
The IDB has issued 51 registered certificates for industrial entities in Abu Dhabi under the scheme, authorities said.
Meanwhile, the ETIP has contributed in increasing the return rate by 25 per cent on the investments of those facilities, while the manufacturers have benefitted from Dh610 million in benefits and incentives from the Abu Dhabi government, Added said.
Productivity among the factories that have obtained the ETIP certificate has already increased by 14 per cent, the agency said.
“ETIP is aligned with the vision and mission of the Abu Dhabi government, which aims to enhance the emirate’s competitiveness globally as well as create new investment opportunities that support the emirate’s local economy ecosystem in non-oil sectors, providing it with the highest sustainability standards and operational efficiency," Mr Al Balooshi said.