Abu Dhabi’s ADDED registers 136 new industrial licenses in H1 2022

The Industrial Development Bureau (IBD), part of the Abu Dhabi Department of Economic Development (ADDED), announced that new industrial licenses (Rowad) reached 136, and those transitioning to the construction phase reached 62, with the number of licenses having moved from under-construction to in-production reaching 44 factories.

The total number of active in-production licenses was 866 by end of June 2022, according to IBD’s manufacturing report.

The total value of capital expenditures (CAPEX) of industrial establishments that switched to the in-production stage rose to Dhs3.1bn compared to Dhs1.03bn in the same period last year.

The report revealed positive indicators, including the growing number of government tenders awarded to companies with In-Country Value (ICV) certificates, under the Abu Dhabi Local Content programme (ADLC), reaching 466 tenders, up from 95 tenders in H1 2021. The value of tenders won by ICV holding companies rose from Dhs550m in the first six months of 2021 to Dhs970.5m in H1 2022.

Tenders with local content value represent 41.9 per cent of tenders awarded to ICV certificate holding companies, which means Dhs407m were re-injected into the local economy to support local products, compared with Dhs215.2m in the first half of 2021.

During H1 2022, tenders awarded to ICV holding companies made up 56.1 per cent of 827 total government tenders, with 72 per cent of the total value of government tenders, amounting to Dhs1.33bn.

The ADLC programme contributes to the growth of the emirate’s GDP, enhancing the knowledge economy attributes, technology utilisation, and increasing Emiratisation rates.

The number of highly skilled employees in factories enrolled in the Electric Tariff Incentive Programme (ETIP) reached 41 per cent of the total.

The IDB’s H1 2022 report also reflected a growing interest in the ‘Golden List’ initiative, developed to increase demand for locally manufactured goods through government procurements. The number of manufacturers that joined the list topped 127 by end of June 2021, an increase of 14.4 per cent compared to 111 establishments as of 31 December 2021.

The number of registered products in the list grew by 33.9 per cent to reach 655 products from 489 in the same period last year The report revealed that the total value of customs fees exemption granted to manufacturers in Abu Dhabi during the first half of 2022 reached Dhs1.02bn, with five new factories having earned Electric Tariff Incentive Programme (ETIP) certificates.

The ETIP aims to boost the productivity of industrial facilities and enhance their economic impact and energy efficiency, by providing competitive electricity tariffs.

Rashed Abdulkarim Al Blooshi, Under Secretary of ADDED, said, “The strong indicators of IDB’s H1 2022 report reflect the strength of the manufacturing sector in Abu Dhabi, which is a key priority for achieving our economic diversification objectives. The industrial sector is the largest contributor to Abu Dhabi’s non-oil GDP in addition to its role in creating jobs and enhancing knowledge and innovation-driven initiatives.

“We are building on these successes and will continue our efforts to ensure ease of doing business, support industrial financing, and FDI attraction to achieve objectives of the recently launched Abu Dhabi Industrial Strategy to strengthen the emirate’s position as the region’s most competitive industrial hub. To this end, Abu Dhabi is investing Dhs10bn across six transformational programmes to more than double the size of the manufacturing sector to Dhs172bn by 2031 and create new 13,600 skilled jobs, with a focus on Emirati talent.”

As part of IDB’s efforts to ensure compliance of industrial establishments with laws, regulatory framework, and licensing criteria as well as providing technical and administrative guidance to enhance performance, 741 field visits were carried out covering 576 industrial facilities, including 417 in Abu Dhabi, 143 in Al Ain, and 16 in Al Dhafra. Total investments in these facilities exceed Dhs2.5bn.

The Industrial Development Bureau is expanding the scope of the self-monitoring programme for facilities with high levels of compliance, to include more than 80 industrial facilities until 2023, compared to 43 by end of June. This will be achieved by upskilling workers, and further advancing UAE nationals’ expertise in aspects related to senior management and corporate governance.

Sameh Al Qubaisi, DG  of Economic Affairs at ADDED, said, “IDB is implementing initiatives to deliver against Abu Dhabi Industrial Strategy’s objectives. The Smart Manufacturing Programme has assessed the readiness of 76 facilities to transition to Industry 4.0 technologies. In addition, we are strengthening partnerships with leading global players to empower manufacturers to switch to Industry 4.0, and to support a circular, smart and sustainable economy.”

To enhance the competitiveness of the funding environment, IDB has signed memorandums of understanding with bodies such as Etihad Credit Insurance, Abu Dhabi Export Office, Abu Dhabi Securities Exchange (ADX) and Maqta Gateway to help improve financial inclusion for industrial facilities.