Abu Dhabi launches 'smart manufacturing' index

The marker will give private sector companies the necessary knowledge and training in Industry 4.0 technologies

Abu Dhabi's Department of Economic Development has set up a new index to help private sector companies navigate smart manufacturing technologies. Photo: Added

Abu Dhabi's Department of Economic Development (Added) has launched a new index to help private sector industrial companies adopt smart manufacturing technologies to accelerate growth and boost competitiveness.

The new marker guides the private sector players’ transition to Industry 4.0 technologies, applications, and methods as part of initiatives under the Abu Dhabi Industrial Strategy, Added said in a statement on Sunday.

“It is of paramount importance to equip manufacturers with vital, seamless and effective mechanisms to transition to Industry 4.0 technologies and applications to drive future growth, and pre-empt shifts in demand and supply,” Mohamed Al Shorafa, chairman of Added, said.

“The Abu Dhabi Smart Manufacturing Index addresses all aspects of the transition to methods of tomorrow’s manufacturing.”

In June, the Abu Dhabi government pledged to invest Dh10 billion ($2.72 billion) across six industrial programmes to more than double the size of the emirate’s manufacturing sector to Dh172 billion by 2031.

This will be done by increasing access to financing, further improving the ease of doing business and attracting foreign direct investment as part of the Abu Dhabi Industrial Strategy to strengthen the emirate’s position as the region’s most competitive industrial centre.

“The Abu Dhabi Industrial Strategy has ushered in a new era,” Mr Al Shorafa said.

“To further enhance a smart, circular and sustainable economy, we are forging ahead with taking the manufacturing sector to the next level by empowering industrial facilities to keep pace with latest trends and solutions.”

The launch of the Abu Dhabi Smart Manufacturing Index provides a “critical, comprehensive framework” for assessing capabilities of industrial facilities, identifying gaps, and recommending practical steps for reaching the targeted Industry 4.0 maturity, Added said.

The index will give manufacturers the necessary knowledge and training in Industry 4.0 technologies.

It breaks down sophisticated concepts into six building blocks to provide a clear and easy-to-follow road map, which starts by evaluating a production facility’s current state, followed by ways to raise readiness levels, proposed steps to transform their facilities, and identifying the best production methods to capitalise on shifting to advanced manufacturing, Added said.

Since the roll-out of the industrial strategy, Added has introduced initiatives to deliver on its objectives.

Added recently launched the Land Incentives programme, which offers long-term lease contracts for industrial land through rental rebates, with rates as low as Dh5 per square metre.

It also expanded the Energy Tariff Incentive Programme (ETIP 2.0) by offering preferential rates for gas and electricity to the industrial sector based on eligibility criteria including economic impact, Emiratisation rate and energy management efficiency.

During the first six months of this year, Added's Industrial Development Bureau (IDB) assessed the readiness of 76 facilities to transition to Industry 4.0 technologies.

IDB is managing the Abu Dhabi Smart Manufacturing Index and will be working closely with manufacturers and related entities to execute the plan, Added said.