MoIAT's 2023 Triumphs Shape UAE's Industrial Landscape
The Ministry of Industry and Advanced Technology in the UAE has unveiled its key accomplishments for the year 2023, reflecting a commitment to advancing the nation's industrial sector. The achievements are attributed to four pillars, including creating a business-friendly environment, enhancing In-Country Value (ICV), driving technological transformation, and promoting sustainability in line with the National Strategy for Industry and Advanced Technology, Operation 300bn.
Strategic Pillars Yield Remarkable Results
Under the visionary leadership of His Highness Sheikh Mohammed bin Zayed Al Nahyan, the ministry's achievements were outlined by His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology. Notable highlights include the completion of 30 percent of the Operation 300bn target, with the industrial sector contributing a projected AED 197 billion to the GDP in 2023.
Since the initiation of Operation 300bn in 2021, industrial exports experienced a 17 percent growth, accompanied by a 7 percent boost in productivity. Import substitution projects totalling AED 9.3 billion were activated, and the UAE secured a prominent position in the Competitive Industrial Performance Index, ranking first regionally and 29th globally.
In collaboration with partners such as EDB, Mashreq Bank, and FAB, the ministry provided AED 5.3 billion in competitive financing solutions, marking a significant 70 percent increase from 2022. Notably, 90 percent of the financing targeted SMEs, enhancing their growth and competitiveness. A substantial AED 3.3 billion in industrial investments was facilitated for future industries like biotechnology, hydrogen, and electric vehicles.
National ICV Program and Emiratisation Lead Success
The National ICV Program achieved a 17 percent growth in local expenditure, amounting to AED 61 billion. Furthermore, the ministry's initiatives in supporting Emiratisation in the industrial sector led to the launch of various programs, resulting in the employment of over 7,000 UAE nationals.
In a bid to bolster Emiratis' career growth, the ministry introduced the Industrialists Program in 2023, connecting jobseekers with industrial companies and creating 500 jobs in its inaugural launch. The efforts to localise supply chains are evident, with 28 percent of total local procurement deals secured, totalling AED 31 billion.
Commitment to Sustainability and Climate Action
Aligning with the UAE's commitment to sustainability, the ministry announced the Industrial Decarbonisation Roadmap during COP28, targeting a 93 percent reduction in carbon emissions by 2050. The country's efforts to adopt advanced technologies and sustainability best practices throughout the industrial value chain were highlighted as key components of the ministry's strategy.
His Excellency underscored the achievements as a testament to the industrial sector's role in supporting sustainable economic growth, local production, talent empowerment, and global market access for investors.
Future Direction and Technology Transformation
Her Excellency Sarah Al Amiri, Minister of State for Public Education and Advanced Technology, emphasised the ministry's accomplishments in 2023, particularly in supporting the growth of the national industrial sector. Noteworthy advancements include the launch of the Industrial Technology Transformation Index, contributing to the UAE's global competitiveness in various indicators.
Under the Technology Transformation Program, the ministry introduced incentives such as a 5 percent bonus for National ICV companies, Golden Visas for Fourth Industrial Revolution talent, and grants linked to ITTI criteria. The Industrial 4.0 Enablement Centres, launched in collaboration with the Abu Dhabi Department of Economic Development and UAE University, played an important role in promoting the adoption of advanced technologies.
Incentives and Enablers Drive Growth
To boost a business environment conducive to growth, MoIAT continued to introduce incentives and enablers. New laws on the regulation and development of industry were issued, accompanied by AED 5.3 billion in financial solutions – a 70 percent increase from 2022. Customs exemptions totalling AED 3 billion were granted for manufacturers on industrial inputs, while credit solutions of AED 1.4 billion were provided in collaboration with Etihad Credit Insurance.
The inaugural Make it in the Emirates Awards celebrated visionaries and innovators, showcasing their contributions to shaping the future of the UAE industry. The forum also unveiled local purchasing opportunities, investment projects, and financing packages, further stimulating the industrial landscape.
National ICV Program Hits Milestones
The National ICV Program, a key focus of the ministry, achieved milestones in 2023. Expenditure on local products and services by National ICV entities increased by 17 percent to AED 61 billion, with the number of certified companies growing by 22 percent to 5,500. The program contributed to an 80 percent increase in the number of Emiratis employed in certified companies, reaching approximately 16,000 in 2023.
The Industrialist Career Fair, launched under the Industrialist Program, provided 500 job and training opportunities to local talent, with over 400 Emiratis accepting job offers.
Technological Transformation and Sustainable Industries
To drive technological transformation, MoIAT collaborated with the Abu Dhabi Department of Economic Development to launch the ITTI in 2023. The Industry 4.0 Enablement Centres, complementing the existing centre, facilitated digital strategies and technological transformation projects for companies and individuals.
In support of sustainable economic development, the ministry introduced the Green ICV incentive under the National ICV Program, offering an additional 3 percent bonus score to companies demonstrating commitment to sustainability standards. The ministry's efforts in advancing the industrial ecosystem were evident in attracting AED 380 million in industrial investments in the plastic recycling sector.
COP28 Achievements and Regional Collaborations
During COP28, the ministry achieved several milestones, including the announcement of The Industrial Decarbonisation Roadmap and hosting 43 climate tech startups. The industrial partnership with Egypt, Jordan, and Bahrain, aimed at sustainable growth, launched joint industrial investment projects reaching US$3.3 billion by the end of 2023.
In summary, MoIAT's approach, business-friendly initiatives, technology transformation, sustainability, and collaborations, has positioned the UAE's industrial sector for sustained growth and global competitiveness.