New technology index to help UAE companies boost their in-country value scores

The programme redirected $14.43bn into the economy of the Emirates last year

The Corniche in Abu Dhabi. The in-country value programme aims to boost the private sector’s participation in the economy. Victor Besa / The National

Companies in the UAE can now increase their In-Country Value score by up to 5 per cent by participating in the recently launched Industrial Technology Transformation Index, which allows them to exhibit their level of technology adoption and sustainability.

The index, launched at last month’s World Government Summit in Dubai, is a comprehensive framework to measure the digital maturity and sustainability of factories, the Ministry of Industry and Advanced Technology said.

The ministry announced the update on Monday to encourage manufacturing companies in the UAE to adopt advanced technology and Fourth Industrial Revolution (4IR) solutions.

The 5 per cent bonus is added on top of a company's overall ICV score, it said. Half of the total ICV score is determined by manufacturing costs while investment contributes a quarter.

Emiratisation accounts for 15 per cent and expatriate contribution accounts for 10 per cent.

Entities can also be awarded a separate ICV bonus, which can increase their overall score by 5 per cent, the ministry said.

The initiative will “supercharge” industrial sustainability and the adoption of Fourth Industrial Revolution, Sarah Al Amiri, Minister of State for Public Education and Advanced Technology, said.

“By incorporating the index into the National ICV formula, we are incentivising companies in the UAE to assess their capabilities, adopt 4IR solutions, and integrate sustainability best practices,” said Ms Al Amiri.

“This will ultimately help to enhance productivity, increase sustainability, boost competitiveness and raise efficiency in line with national efforts to transform industry and achieve net-zero carbon emissions by 2050.”

The ICV programme aims to boost the private sector’s participation in the economy, diversify output and localise critical parts of the supply chain.

The programme redirected Dh53 billion ($14.43 billion) into the national economy in 2022, which was a 25 per cent increase from the previous year.

The UAE launched its industrial strategy, Operation 300bn, in 2021 to position the country as an industrial centre by 2031.

The 10-year strategy focuses on increasing the industrial sector’s contribution to gross domestic product to Dh300 billion by 2031, from Dh133 billion in 2021.

The Make It In The Emirates campaign encourages local and international investors to manufacture and export products from the UAE.

“It is a particularly pertinent time to update the National ICV formula as the UAE gets ready to host Cop28 this November,” said Ms Al Amiri.

“We are keen on demonstrating to the international community that we are pioneering sustainable industrial development through technological transformation, innovation and supply chain localisation.”