UAE's Industry Development Council hails new law on development of industry

The law will help to attract local and foreign investments to the industrial sector and enhance priority sectors, Dr Sultan Al Jaber says

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, led the UAE's Industry Development Council’s meeting on Monday. Photo: MoIAT
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The UAE's Industry Development Council, which supports the growth and competitiveness of the country's industrial sector, hailed the new Federal Decree-Law Number 25 of 2022 on the regulation and development of the industrial sector issued by President Sheikh Mohamed last week.

The law was introduced to support the organisation and development of the national industrial sector by increasing the flexibility to adopt more supportive policies and provide incentives, according to the government.

It aims to strengthen the UAE’s position as a leading destination for industrial investments.

“The new law will help to attract local and foreign investments to the industrial sector, enhance priority sectors, enable the Make It In The Emirates initiative — especially in the F&B and pharmaceutical sectors — help to achieve self-sufficiency, and support growth opportunities in future industries such as space, hydrogen and medical and agricultural technology,” Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and chairman of the Industry Development Council, said on Monday as he led council's third meeting.

“The law is also a mainstay in the legislative system, supporting the growth of the national industrial sector and increasing its contribution to national GDP [gross domestic product] in line with the objectives of the national strategy for industry and advanced technology and the Industrial Development Council.”

During the meeting, the council’s members also reviewed recommendations made at the previous meeting and discussed the progress in enacting them, the MoIAT said in a statement.

The IDC also discussed projects to support the industrial business environment and the positive impact resulting from the emirates of Ras Al Khaimah and Fujairah joining the National In-Country Value programme.

It supported the Cabinet’s decision to exempt certain imports from customs fees.

In 2021, the UAE announced Operation 300bn, a 10-year strategy to increase the industrial sector's contribution to the country's gross domestic product to Dh300 billion ($81.7bn) and strengthen the Make It In The Emirates initiative. Both initiatives have the goal of transforming the nation into a manufacturing powerhouse.

“The new policy represents an advanced mechanism to enable factories in the country by exempting imported materials entering the industrial sector from customs fees. These exemptions encourage factories to use locally produced materials, in line with the Make it In The Emirates campaign, an initiative that supports the purchase of local products and raw materials,” Dr Al Jaber said.

“The new policy will have an important economic impact by developing local industries and their exports, reducing unfair competition, supporting the legislative environment, stimulating doing business, supporting national markets, and creating investment opportunities for new products.”

During the meeting, the IDC members discussed a number of projects related to empowering the industrial sector. This included enhancing the council's role in launching initiatives in the industrial sector and supporting efforts around the Make It In The Emirates initiative.

Other projects discussed included those designed to build capabilities, create an attractive environment for entrepreneurs and SMEs, open new markets for UAE products, and enhance efficiency, flexibility and quality to raise the global competitiveness of local products, the statement said.

The council seeks to enhance the performance, growth and competitiveness of the industrial sector through increasing the flexibility of industrial licensing procedures and making it easier for entrepreneurs, SMEs, advanced technology companies and researchers to establish businesses in the UAE, the statement said.

It is also working to support integration efforts between national and local entities to create a suitable and attractive business environment for local and international investors in the industrial sector.

Updated: November 14, 2022, 4:50 PM
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