The Tawazun Economic Council has joined the Ministry of Industry and Advanced Technology’s national In-Country Value programme to hasten the growth of the UAE's industrial sector.
The agreement will boost co-operation between Tawazun and the ministry to achieve the objectives of the ICV programme, which aims to increase internal demand for local products and services to Dh55 billion by 2025, from Dh33bn last year.
Tawazun is a state body whose mandate is to drive economic growth and the development of the UAE’s defence and security industries.
“We will work hand in hand to develop and put forward policies, strategies and legislation to promote UAE products and boost local industrial output,” said Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology.
This is in line with the national strategy that aims to enhance the industrial sector’s role in the national economy, said Mr Al Suwaidi.
The UAE's national ICV programme will be introduced in all federal entities and across 12 national companies by the end of this year. It expects the redirection rate of government spending towards UAE-based companies to surge to 50 per cent by 2031.
The programme is in line with Operation 300bn, the national strategy launched in March to position the UAE as a global industrial centre by 2031.
The 10-year comprehensive strategy aims to increase the industrial sector's contribution to the country's gross domestic product to Dh300bn, from the current Dh133bn.
Overall, Operation 300bn aims to support 13,500 small and medium enterprises over the next decade.
The council is “keen to support government efforts to enhance the national economy by empowering companies and industrial projects”, said Tawazun chief executive Tareq Al Hosani.
The council has contributed to the establishment of more than 111 companies and investment entities in 12 vital sectors, including about 40 defence and security companies. It has also created more than 100,000 permanent job opportunities, some of which have been localised, said Mr Al Hosani.
In November, Tawazun signed a preliminary agreement with aircraft manufacturer Airbus to establish a subsidiary in Abu Dhabi. The move is part of the council's efforts to attract and promote long-term partnerships with major companies in the defence, aviation and aerospace sector.
Last month, Etihad Rail, developer and operator of the country’s national railway network, UAE defence conglomerate Edge and the Sharjah Investment and Development Authority, better known as Shurooq, joined forces with the Ministry of Industry and Advanced Technology under the ICV initiative.
They became the second set of companies to commit to the programme after Etisalat, Emirates Steel and Taqa, which joined in September.