MoIAT Boosts UAE GDP With AED197 Billion

The Ministry of Industry and Advanced Technology (MoIAT) disclosed its significant accomplishments for 2023, notably its contribution of an estimated AED197 billion to the nation’s GDP.

These successes were anchored in four strategic pillars: nurturing a business environment conducive to UAE companies’ growth and appeal; enhancing In-Country Value in the industrial realm; propelling technological advancements for enhanced productivity and competitiveness; and championing sustainability. These efforts are in sync with the goals of the National Strategy for Industry and Advanced Technology, part of Operation 300bn.

He emphasized the ministry’s commitment to realizing President His Highness Sheikh Mohamed bin Zayed Al Nahyan’s vision and following the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, with guidance from His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court.

Since the 2021 launch of Operation 300bn, the industrial sector saw a 17 percent increase in exports and a 7 percent boost in productivity. The ministry also initiated AED9.3bn worth of import substitution projects. In 2023, the UAE topped the regional charts and ranked 29th globally on the Competitive Industrial Performance Index by UNIDO.

In collaboration with EDB, Mashreq Bank, and FAB, MoIAT provided AED5.3 billion in competitive financing solutions to the industrial sector, a 70 percent increase from 2022. SMEs accounted for 90 percent of these funds, aimed at enhancing industrial companies’ growth and competitive edge. Additionally, in partnership with Etihad Credit Insurance, the ministry secured AED1.4 billion in credit solutions and facilitated AED3.3 billion in investments in sectors like biotechnology, hydrogen, and electric vehicles.

Dr. Al Jaber reported a 17 percent yearly increase in local expenditure to AED61 billion under the National ICV Programme, with 28 percent of the procurement deals from the Make it in the Emirates Forum, amounting to AED31bn, being secured.

To bolster Emiratization in the industrial sector, the ministry launched initiatives leading to over 7,000 UAE nationals being employed in National ICV Programme-certified companies. The 2023 Industrialists Programme also offered 500 jobs to Emiratis.

The ministry’s alignment with the UAE’s sustainability and climate action goals includes the Industrial Decarbonisation Roadmap, aiming for a 93 percent carbon emission reduction by 2050, announced at COP28 hosted by the UAE.

Dr. Al Jaber concluded that the industrial sector’s achievements reflect its alignment with leadership vision, marking it as a key driver of the UAE’s sustainable economic growth.

Future Direction

In 2023, the ministry launched the Industrial Technology Transformation Index (ITTI) as part of Operation 300bn. This index assessed 153 companies, leading to 70 percent adopting sustainability practices and 32 percent implementing Fourth Industrial Revolution solutions, creating 360 high-tech jobs and AED600 million in technology investments.

The ITTI is integrated into the National ICV Programme, and the Technology Transformation Programme (TTP) has been crucial in driving technological advancement in key sectors.

Incentives and Enablers

Aligned with Operation 300bn’s objectives, MoIAT offered new incentives, financial solutions, and flexible legislative frameworks in 2023. This included AED5.3 billion in financial solutions and customs exemptions for manufacturers totalling AED3 billion. The ministry also reduced industrial service fees by 52 percent, equivalent to AED29.5 million.

The Make it in the Emirates Forum’s second edition featured new local purchasing opportunities and celebrated industry innovators.

National In-Country Value Programme

The National ICV Programme saw a 17 percent increase in local spending to AED61 billion, with the number of National ICV-certified companies growing to 5,500. The programme boosted Emirati employment in certified companies by 80 percent.

The ‘Industrialist Career Fair’ under the Industrialist Programme offered 500 job and training opportunities, with over 400 Emiratis securing jobs.

Technological Transformation

The ITTI, launched in February 2023, evaluates digital maturity and sustainability in factories, aiding in technological transformation. The TTP and Industry 4.0 Enablement Centres, including a new facility with the UAE University, support digital strategies and technological projects. Incentives under the TTP include a 5 percent bonus for National ICV companies and Golden Visas for Fourth Industrial Revolution talent.

Sustainable Industries

MoIAT’s 2023 initiatives include the Green ICV incentive under the National ICV Programme, promoting sustainability standards. The ministry’s new regulations boosted plastic recycling investments to AED380 million. The UAE Climate Tech forum, in collaboration with ADNOC and Masdar, spotlighted technologies for sustainable development.

COP28

At COP28, the ministry announced The Industrial Decarbonisation Roadmap for a 93 percent reduction by 2050 and hosted 43 climate tech startups. It organized sessions with UNIDO to foster sustainable industrial development and innovation.

The ministry’s industrial partnership with Egypt, Jordan, and Bahrain aims at sustainable sector growth, achieving $3.3 billion in joint industrial investment projects by the end of 2023.