UAE industrial exports have grown by Dhs70 billion in 3 years: Minister

Dr Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, affirmed that, since its establishment, the Ministry of Industry and Advanced Technology (MoIAT) launched numerous strategic initiatives and programmes to empower the national industrial sector as well as enhance the business environment and industrial competitiveness.

In a statement to the Emirates News Agency (WAM), Dr Al Jaber highlighted MoIAT’s focus on boosting in-country value in the national industrial sector while also enhancing the value add of manufacturing, in an effort to boost supply chain security as well as economic competitiveness in a way that supports national products.

“This has contributed to greater national industrial security and self-sufficiency, resulting in Dhs9.3 billion worth of import substitution projects,” the UAE Minister of Industry and Advanced Technology explained.

He highlighted that MoIAT-launched enablers and incentives were among the most important tools for supporting sustainable business growth, and reducing financial barriers and risks for industrial companies, nothing that “financing not only supports innovation and technological transformation but can also enhance business growth and help create more high-tech job opportunities in the private sector”.

Asked about the UAE’s industry and technology sector before and after the establishment of the ministry, Dr. Al Jaber said, “Before 2020, the UAE’s industrial sector was overseen by several different entities, meaning there were some regulatory and procedural disparities at the federal and local levels. This impacted the ease of doing business and operating costs, limited competitive sources of financing, and slowed technology transformation initiatives.

“In line with the leadership’s directives to diversify the UAE’s economy and strengthen the country’s economic competitiveness and global industrial ranking, the Ministry of Industry and Advanced Technology (MoIAT) was established in 2020. In March 2021, the National Strategy for Industry and Advanced Technology, Operation 300bn, was launched to create a strong industrial business environment that supported growth and competitiveness. It was also mandated with establishing an integrated system of enablers, incentives and financing solutions, in addition to a flexible legislative structure and robust quality infrastructure.”

He added, “If we look at the sector’s key performance indicators, the industry’s contribution to the UAE’s economy has increased by 49 percent since MoIAT was established. In 2020, before the ministry was created, the sector’s contribution to GDP was Dhs132 billion. Today it has reached a projected Dhs197 billion. Industrial exports have grown by 60 percent with significant progress being made last year, amounting to a projected Dhs187 billion compared toDhs117 billion in 2020. Industrial productivity has increased by 18 percent compared to 2020. In 2023, the UAE ranked first regionally and 29th globally in UNIDO’s Competitive Industrial Performance Index, climbing seven spots since 2020.”

“This growth is largely due to strategic initiatives and programmes MoIAT has launched to empower the national industrial sector as well as enhance the business environment and industrial competitiveness,” Dr. Al Jaber went on to explain. “Accordingly, we focused on two main pillars: the first is boosting in-country value in the national industrial sector while also enhancing the value add of manufacturing. This is to meet our basic necessities and boost supply chain security as well as economic competitiveness in a way that supports national products. The second is providing more valuable opportunities to the industrial sector, whether it is through investment opportunities or facilitating access to global markets, as well as attracting foreign investments in advanced industries.”

He underscored one of MoIAT’s flagship initiatives is the National In-Country Value (ICV) Programme, through which more than Dhs237 billion being spent outside the UAE has been redirected into the national economy. “This recapturing of national procurement has contributed to the growth and competitiveness of the industrial sector and has directly enhanced self-sufficiency. So far, 16,000 Emiratis have been employed across ICV-certified companies.”

Dr. Al Jaber continued, “MoIAT has also implemented initiatives to enable local products and create product offtake opportunities for local businesses. This has been achieved through partnerships with major national companies, especially in priority sectors, such as pharmaceuticals. For example, last year saw the establishment of the first factory in the Middle East to produce glargine (a synthetic version of human insulin).

“We also saw product offtake opportunities in medical supplies. This has contributed to greater national industrial security and self-sufficiency, resulting in AED9.3 billion worth of import substitution projects.”

In terms of promoting advanced technologies and Industry 4.0 solutions, the UAE Minister of Industry and Advanced Technology said that MoIAT has “paved the way for the adoption of robotics, artificial intelligence, blockchain, nanotechnology, biotechnology, the Internet of Things and 3D printing, among others”.

WAM