H.E Al Neyadi: A study for the dissemination of the program «Local Added Value»
Thursday, January 03, 2019
Industry investments in the UAE have doubled BY 2000% since the establishment of the Union.
H.E the Undersecretary of the Ministry of Energy and Industry Dr. Matar Hamid Al-Neyadi said yesterday that the ministry is considering the possibility of implementing a similar program for the Abu Dhabi National Oil Company (ADNOC) for " the Local Added Value" to other industrial sectors such as medicines, food, contracting and marine industries, explaining that this will be studied with the relevant local and federal entities.
H.E Al Neyadi praised the ADNOC's Local Added Value Program in early 2018, noting that the program, which came into effect early last year, gave local companies, especially SMEs, greater opportunities to participate in tenders for major oil and gas projects.
He stressed that ADNOC program is a great support for the industry and local companies, especially companies that employ national cadres or that use local products as well as international companies that have headquarters in the country and contribute to support the national economy. He said, “This program will have a significant role in stimulating and supporting the industry sector”.
The Ministry is considering implementing a similar program in other sectors such as the pharmaceutical, food, contracting and marine industries.
H.E Al Neyadi pointed out that the preparation of the industrial development strategy 2030, which will include a set of objectives and initiatives that will be implemented in coordination with local and federal entities such as the «Made in the UAE» initiative, aims to highlight the UAE's distinctive industrial destination for selected industries and attract new industries such as robotics and industries Associated with artificial intelligence.
The Undersecretary of the Ministry affirmed that the industrial sector in the country has witnessed tremendous growth. He pointed out that the investments of the sector and factories have doubled by about 2000%. The number of factories in the country today exceeds 7400 factories with investments amounting to 480 billion Dirhams compared to 4 factories with an investment of 260 million dirhams before the Union of Emirates with a growth rate of 1845%.
He pointed out that the industrial sector has witnessed great qualitative developments and that before the union the four factories were working in the fields of manufacturing plastic pipes and juices and filling oxygen gas for hospitals. However, today we have factories that manufacture products with great added value and highly specialized, and supply high-efficiency products to the countries of the world.
He pointed out that the industrial sector witnessed great qualitative developments, and that before the union, the four factories were working in the fields of manufacturing plastic pipes and juices and filling oxygen gas for hospitals, while today we have factories that manufacture products with great value added and highly specialized and supply high-efficiency products to the countries of the world.
He pointed out that the period from 1971 to 1991 was characterized by the entry of the state and its expansion in the important strategic industries, especially the petrochemicals, cables, ceramics, cement, reinforcing steel and others to meet the needs of the urban boom witnessed by the UAE. These industries played a major role in pushing forward the development.
He added that this period also witnessed the UAE's joining a number of international and regional industry organizations and institutions such as the United Nations Industrial Development Organization (UNIDO), and the Gulf Industrial Consulting Corporation (GICIC) to exchange experiences and learn about the experiences of other countries.
- Economic balance
H.E the Undersecretary continues saying that the period from 1992 till today was characterized by the launch of the economic balance program, which aims to re-invest part of the armament contracts with international companies, and the establishment of advanced industries and attracting foreign investment and advanced technologies, which has already happened where we saw the defense industries very sophisticated in UAE.
“Strata has grown significantly in the aviation industry and has successfully manufactured the necessary components for Airbus, and today we are proud that in every new aircraft the company has parts manufactured in the UAE”, said the Undersecretary.
He pointed out that during this period also emerged heavy industries such as the iron and steel industry. The petrochemicals, solar panels, refrigerators, washing machines and drones were expanded. These industries have succeeded significantly in entering markets outside the country.
- Attractive environment
H.E also stressed that the attractive legislative and investment environment in UAE drives the industry sector to develop and grow. The UAE's experience in the free zones has attracted investors who have moved to the UAE to open branches of their factories, companies and specialized Industries, which has achieved a lot of success and included specialized industries.
He explained that the first federal law to regulate the industry sector was in 1979, and the ministry is working on its study to propose the necessary amendments in line with the changes witnessed by the UAE and the industry sector locally and internationally, in addition to attracting more foreign investments.
- Success factors
He pointed out that the great success witnessed by the industrial sector is due to several factors: First, the continued support of the leadership of this important sector and the strong desire to increase its contribution to GDP in the framework of the policies of economic diversification of the country. In addition, the UAE enjoys a strong infrastructure of advanced ports, Global aviation, the ease of administrative procedures and simplification of investors. For example, we have in Abu Dhabi Maqta Gateway that allows the foreign investor to complete the process of licensing his entire factory in very few days.
H.E pointed out that the Baraka nuclear energy project contributed to giving the UAE producer the opportunity to build this project so that a number of national factories have the ability to compete and enter the markets even outside the country.
For example, Emirates Steel Factory has successfully met the international specifications required to supply the Barakah project with the required steel rebar to build the project, while Arkan Building Materials succeeded in providing the required cement mix for building nuclear reactors.
Ducab plant has succeeded also in supplying the power cables that will connect Barakah project to the UAE network. The achievement and success of the national product in the supply of these materials to the Baraka Nuclear Power Project has confirmed the industrial capabilities of the UAE's industry sector, whether in the form of an integrated product or part of a supply chain to manufacturing a product.
H.E Al Neyadi praised the efforts of the UAE Council for Industrial Co-ordination, chaired by His Excellency the Minister of Energy and Industry and the membership of representatives from the local and federal authorities, as it plays a major role in increasing coordination and pushing the UAE industrial sector forward.
- Laws and regulations
In 2002, a federal law was passed to protect industrial property. Regulations and regulations were issued to encourage national and foreign investments in the industrial sector. These regulations undoubtedly created an attractive investment environment for large foreign capital to invest in the industrial sector.
* Source: Albayan - Translated by MOEI