The Ministry of Industry and Advanced Technology on Wednesday signed agreements with Adnoc, Edge Group, Kezad Group and Dubai Industrial City. Photo: MoIAT
The Ministry of Industry and Advanced Technology on Wednesday signed agreements with Adnoc, Edge Group, Kezad Group and Dubai Industrial City. Photo: MoIAT
The Ministry of Industry and Advanced Technology on Wednesday signed agreements with Adnoc, Edge Group, Kezad Group and Dubai Industrial City. Photo: MoIAT
The Ministry of Industry and Advanced Technology on Wednesday signed agreements with Adnoc, Edge Group, Kezad Group and Dubai Industrial City. Photo: MoIAT

MoIAT signs deals to boost decarbonisation in manufacturing sector


Fareed Rahman
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The Ministry of Industry and Advanced Technology (MoIAT) has signed four preliminary agreements to accelerate decarbonisation and digitalisation in the manufacturing sector, as the UAE aims to become net zero by 2050.

The new agreements were signed with Adnoc, Edge Group, Kezad Group and Dubai Industrial City with a focus on the implementation of the Industrial Technology Transformation Index, a new framework to measure digital maturity and sustainability in factories, the ministry said on Wednesday.

“By participating in the index, companies will gain a clear road map as well as recommendations to help them integrate technologies that will boost their productivity and efficiency,” MoIAT said.

“These efforts will support decarbonisation of the entire industrial value chain.”

The UAE is investing heavily in clean energy projects and has announced several initiatives as it seeks to reach net-zero emissions by 2050.

The country is building the world’s largest solar plant in the Al Dhafra region of Abu Dhabi emirate, with a capacity of 2 gigawatts, as well as the Mohammed bin Rashid Solar Park in Dubai, which has a planned capacity of 5 gigawatts.

It also aims to decarbonise the industrial sector.

Through expanding ITTI, MoIAT will also gain more detailed data and information on the industrial landscape, “helping it to co-create evidence-based policies and programmes that drive digital transformation and decarbonisation,” it said.

The partnerships will lead to new incentives that will help manufacturers to digitalise and decarbonise their operations.

This year, MoIAT formed an alliance with the private sector to develop and use sustainable technologies.

The Industrial Sustainability Alliance aims to adopt green technologies to accelerate sustainable industrial growth, the ministry said at the time.

It also seeks to showcase industrial sustainability best practices in the UAE’s industrial sector and provide a platform for dialogue among all stakeholders — policymakers, global technology experts and industry.

In 2021, the UAE launched the Operation 300bn strategy to increase the manufacturing sector's contribution to the country's gross domestic product to Dh300 billion ($82 billion) by 2031, from Dh133 billion in 2021.

The Arab world's second-largest economy is also encouraging companies to manufacture products locally as part of the Make it in the Emirates initiative.

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Trippier bio

Date of birth September 19, 1990

Place of birth Bury, United Kingdom

Age 26

Height 1.74 metres

Nationality England

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While you're here
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The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.

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Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

MATCH INFO

Uefa Champions League semi-final, second leg result:

Ajax 2-3 Tottenham

Tottenham advance on away goals rule after tie ends 3-3 on aggregate

Final: June 1, Madrid

Brief scores:

Day 1

Toss: India, chose to bat

India (1st innings): 215-2 (89 ov)

Agarwal 76, Pujara 68 not out; Cummins 2-40

New Zealand 21 British & Irish Lions 24

New Zealand
Penalties: Barrett (7)

British & Irish Lions
Tries: Faletau, Murray
Penalties: Farrell (4)
Conversions: Farrell 
 

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Updated: May 10, 2023, 2:35 PM