UAE’s industrial sector drives sustainable economic growth

The UAE’s industry and advanced technology sector continues to achieve exceptional qualitative leaps, supported by a robust, sustainable infrastructure, flexible legislation, and a high-quality system of standards and technical regulations that enhance the competitiveness of Emirati products.

The sector has strengthened its role in sustainable economic development, enhanced its competitiveness, and contributed to the country’s GDP under the National Strategy for Industry and Advanced Technology “Operation 300b.”

In statements to the Emirates News Agency (WAM), Omar Al Suwaidi, Under-Secretary of the Ministry of Industry and Advanced Technology, said that the Industrial sector’s contribution to GDP rose to 11 percent, reaching Dhs205 billion by end of 2023.

He noted that this progress has enhanced the sector’s role in the country’s economic diversification and support for sustainable development. This is confirmed by global competitiveness reports, which show the UAE’s ranking rising from 35th place in 2019 to 27th globally and first in the Arab world, according to UNIDO’s Competitive Industrial Performance Index (CIP).

Al Suwaidi also noted that the National In-Country Value (ICV) Programme launched as part of “Projects of the 50”, redirected over Dhs73 billion in corporate spending into the national economy as of Q3 2024.

This initiative has fostered growth and integration among industrial and service companies while creating social impact, with over 19,000 Emiratis employed in private sector companies certified by the programme.

He stated that the Industrial Development Council comprising federal, local, and industrial zone representatives, has played a crucial role in streamlining industrial licensing procedures and implementing a new industrial law that eases licensing requirements, particularly for SMEs.

Over the past few years, industrial financing has significantly expanded, with over Dhs19 billion in competitive funding provided by the Emirates Development Bank and other financial institutions.

In 2024, Dhs9.5 billion in financing was allocated to the industrial sector, including Dhs1.1 billion for advanced technology and Dhs1.8 billion in credit solutions provided by Etihad Credit Insurance.

The “Make it in the Emirates” Forum has achieved remarkable milestones across its three editions. By the end of 2023, purchase agreements for locally manufactured products over a 10-year period had reached Dhs143 billion, covering 2,000 locally produced items.

Additionally, manufacturing contracts worth Dhs62 billion were awarded, and over 300 products were produced and purchased in quantities valued at approximately Dhs7 billion.

Meanwhile the Financial, Economic and Industrial Affairs Committee of the Sharjah Consultative Council (SCC) convened to discuss a draft law concerning taxation of both extractive and non-extractive companies involved with natural resources in Sharjah.

The draft law was presented to the committee during the fifth session of the Advisory Council, prompting a meeting at the council’s headquarters in Sharjah.

Throughout the meeting, the committee reviewed the various provisions and articles of the draft law, highlighting critical components related to the companies involved in extractive activities and those functioning with natural and non-extractive resources subject to the specified tax.

The committee engaged in discussions alongside representatives from the Central Finance Department to tackle the legal and financial elements that the draft law intends to address, ensuring compliance with the tax base requirements for each fiscal year relative to oil and gas companies as specified in their agreements with the Oil Department in Sharjah.

The committee offered insights on several articles, keeping in mind the views of the Central Finance Department, and emphasised the significance of organising principles concerning tax deductions, payments, and audit mechanisms for the revenues of companies affected by the draft law, particularly those dealing with natural resources such as water, oil, gas, coal, naturally occurring minerals, and other non-renewable resources.

The committee is set to continue its thorough examination of the draft law in preparation for submitting its final report to the Advisory Council for further discussion and approval.

The session was attended by Halima Hamid Al Owais, Vice President of the Sharjah Consultative Council, and chaired by Rashid Abdullah bin Huwaiden, the Chairman of the Financial, Economic and Industrial Affairs Committee. Key members in attendance included Fatima Khalifa Al Muqrab, the Committee Rapporteur, along with Amer Mohammed Al Zarouni, Engineer Nabil bin Butti Al Muhairi, Abdullah Taresh Al Ketbi, Tariq Murad Mirza Al Balushi, Mohammed Abdullah Al Balushi, and Mohammed Ali bin Salim Al Ketbi, a Council member.