Emirates Global Aluminium, the UAE's largest industrial company outside oil and gas, joined the Ministry of Industry and Advanced Technology’s National In-Country Value programme as the industrial major moves towards its goal of doubling its economic impact by 2040.
The signing of the preliminary agreement represents a “big boost” to the ICV programme given EGA's scale, which generates around Dh20 billion ($5.44bn) in economic activity yearly and supports more than 60,000 jobs in the UAE.
“The National In-Country Value programme will enhance the capabilities of local suppliers holding a National In-Country Value Certificate through increased demand for local goods and services and the redirection of more than 42 per cent of government and participating private-sector procurement by 2025,” Omar Suwaina Al Suwaidi, undersecretary of the ministry, said on Sunday.
“This will create new business opportunities, stimulate industrial growth and incentivise advanced technology adoption. By joining the programme, EGA is making an important contribution to the UAE’s industrial strategy and we look forward to more national champions following suit.”
The main objective of an ICV Certificate is to boost the private sector's participation in the economy, enable the diversification of GDP and localise critical parts of the supply chain. Simply put, a supplier's spend that remains within the UAE or contributes to the UAE is calculated and considered as ICV.
EGA's ICV participation is the latest in a string of partnerships that are boosting the programme.
Last week, the Industry Ministry teamed up with Abu Dhabi's Department of Economic Development and Abu Dhabi National Oil Company to enhance support for the UAE's Make it in the Emirates campaign, which promotes locally made products and services.
This month, Etihad Rail, the developer and operator of the UAE’s national railway network, the Emirates’ defence conglomerate Edge and the Sharjah Investment and Development Authority also signed up.
In September, telecoms operator Etisalat, Emirates Steel and Abu Dhabi National Energy Company (Taqa) joined the programme.
Mr Al Suwaidi and Abdulnasser bin Kalban, chief executive of EGA, signed the preliminary agreement in the presence of Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and Khaldoon Al Mubarak, chairman of EGA's board.
The ministry's agreements are designed to enhance co-operation between the ministry and major national companies to achieve the goals of the ICV programme, which is in line with the national strategy for industry and advanced technology, Operation 300bn, launched this year with the aim of doubling industry's contribution to national GDP to Dh300bn by 2031.
EGA’s aluminium is the biggest made-in-the-UAE export after oil and gas and is shipped to more than 50 countries.
“One of the most significant opportunities is local procurement. Our demand for goods and services can help UAE companies grow and can spur the development of new industrial activities to supply us. We are looking forward to working with the ministry on this important project,” Mr bin Kalban said.
In 2020, EGA spent more than Dh6bn on goods and services procured locally, representing 45 per cent of the company’s total procurement spend.
In early November, the company completed the expansion of its Al Taweelah smelter in Abu Dhabi to boost output capacity at the plant by 78,000 tonnes per year.