The UAE’s Ministry of Industry and Advanced Technology (MoIAT) has signed a preliminary agreement with the Abu Dhabi Investment Office (Adio) to boost incentives for companies in the emirate’s industrial and advanced technology sector.
The agreement aims to “identify investment opportunities in industry and advanced technology and exchange industrial data, in addition to providing qualitative incentives that contribute to Abu Dhabi's position as a regional and global destination for industrial investment”, MoIAT said in a statement on Monday.
It will also "enhance our ability to attract local and foreign investments and create a business environment that supports investors and entrepreneurs in line with the 'Make it in the Emirates' campaign”, Omar Al Suwaidi, undersecretary of the MoIAT, said.
The UAE last year launched its industrial strategy “Operation 300bn” to position it as a global industrial hub by 2031. The 10-year comprehensive road map focuses on increasing the industrial sector's contribution to the country's gross domestic product from Dh133 billion ($36.21bn) in 2021 to Dh300bn in 2031.
The UAE’s National In-Country Value programme was recently expanded to include domestic companies in Ras Al Khaimah and Fujairah.
The ICV programme, part of the UAE's Projects of the 50 that was launched last September, aims to boost the growth of domestic industries by redirecting half of government spending on procurements and tender contracts into the national economy by 2031.
Last year, it redirected more than Dh41.4bn into the national economy.
“The industrial sector is playing an increasingly important role in contributing to the UAE’s diversification strategy, as it continues to offer exciting investment opportunities for businesses to participate in,” Abdulla AlShamsi, acting Director General of Adio, said.
“Our joint efforts with MoIAT will provide robust support for advanced technology companies to help them reach the next stage of their growth in Abu Dhabi.”
The UAE economy expanded by 8.4 per cent in the first quarter of this year, exceeding initial estimates, as higher oil prices and successful Covid-19 mitigation measures set it up for fastest annual growth since 2011.
The pace of gross domestic product growth in the first quarter — significantly sharper than the 2.1 per cent pre-pandemic GDP level — was above a previous 8.2 per cent estimate by the Central Bank of the UAE. This came as the economy rebounded strongly on the back of tourism, a buoyant property sector and higher oil prices.
