The UAE's national In-Country Value (ICV) programme will be implemented in all federal entities and across 12 national companies by this year-end.
The committee for the ICV programme, formed by the Government, discussed the development of detailed guidelines and criteria for its implementation at its first meeting on Wednesday.
The committee, which includes the UAE’s Ministry of Industry and Advanced Technology, a number of federal and local authorities and national companies, reviewed the programme’s developments and key performance indicators since its launch as part of the Projects of the 50 in September.
"Under the programme, 42 per cent of government spending will be redirected to UAE-based companies by 2025," Omar Suwaina Al Suwaidi, undersecretary of the MoIAT, said.
The ICV programme is expected to reach many milestones, including increasing the internal demand for local products and services from Dh33 billion currently to Dh55bn. It aims to encourage local manufacturers to diversify and develop their production to meet that demand.
“Developing their business models and production methods will also help them meet ICV certification criteria, thus enhancing their chances of partnering with global entities seeking to leverage this opportunity,” Mr Al Suwaidi said.
The programme expects the redirection rate of government spending towards UAE-based companies to surge to 50 per cent by 2031.
Last month, Etihad Rail, developer and operator of the UAE’s national railway network, Emirates’ defence conglomerate Edge, and Sharjah Investment and Development Authority (Shurooq) joined forces with the MoIAT to accelerate the ICV programme.
They became the second set of companies to commit to the programme. In September, a group including Etisalat, Emirates Steel and Taqa joined.
The MoIAT will also provide an open database of manufacturers, suppliers and entrepreneurs joining the ICV programme next year. The move is expected to "help them get familiar with the supply-and-demand ecosystem in the industrial sector and enable them to direct their efforts towards opportunity-rich areas".