UAE's In-Country Value programme redirects $13bn to national economy in first half of 2024

The initiative expands its scope to include 31 federal and local government bodies as well as several national companies

The ICV programme 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. AP

The UAE Ministry of Industry and Advanced Technology’s national In-Country Value (ICV) programme, which seeks to support domestic industrial growth, redirected more than Dh48 billion ($13.1 billion) to the Emirates’ economy in the first half of 2024.

The programme has expanded its scope to include 31 federal and local government bodies as well as several major national companies, the ministry said in a statement on Friday.

National ICV-certified companies made investments worth Dh205 billion by mid-year, an increase of 20 per cent compared to the same period last year. Additionally, more than 3,500 certificates were issued to companies joining the ICV programme during the January-June period, the statement added.

The number of companies that obtained national ICV certificates stood at 6,500 during the first half of the year, a year-on-year increase of 30 per cent.

The programme represents a “critical pillar in empowering the country’s industrial sector”, said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology.

“It plays a vital role in enhancing the business ecosystem, industrial competitiveness and creating job opportunities for national talent. In addition, it supports the objectives of the We the UAE 2031 vision and the UAE Centennial 2071.”

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, while speaking at the Make it in the Emirates forum. Chris Whiteoak / The National

The number of Emiratis working in companies that obtained the national ICV programme certificate reached about 19,000 in the first half of the year, up 40 per cent on the same period last year, and compared to 6,180 jobs in 2020 when the ministry was established.

The ICV programme, part of the UAE's Projects of the 50 that was launched in September 2021, 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.

The programme also supports the goals of the Make it in the Emirates campaign, which was launched by the ministry to attract investment and promote sustainable industrial development in the UAE.

Dr Al Jaber noted that national spending by companies on local purchases and services has been growing annually, reaching Dh53 billion in 2022, a 25 per cent increase from the previous year, and rising to Dh67 billion in 2023, reflecting a 26 per cent annual growth.

There has been a 66 per cent growth in national spending among programme bodies compared to the first half of last year.

The UAE economy's growth in 2023 was stronger than the most recent estimate, driven by non-oil sector growth.

The Arab world’s second-largest economy expanded by 3.6 per cent last year, compared to the 3.1 per cent estimated by the UAE Central Bank in the fourth quarter, the banking regulator said in June.

The ICV programme is also part of Operation 300bn, the UAE's strategy to position it as an industrial centre, focusing on increasing the sector’s contribution to GDP to Dh300 billion by 2031.

The UAE industrial sector’s contribution to GDP reached about Dh197 billion in 2023, with the country achieving 30 per cent of Operation 300bn’s target since its 2021 launch, officials said in January.

"The significant growth of the National ICV programme confirms the effectiveness of efforts and initiatives aimed at developing specialised talent, enhancing local supply chains and value, advancing digital and technological transformation, and boosting the global competitiveness of the industrial sector and the national economy," said Ahmed Al Zaabi, chairman of the Abu Dhabi Department of Economic Development.