UAE Industry Council Aims To Boost Sector's Growth And Global Competitiveness

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of the Industry Development Council, led the sixth meeting of the council. The focus was on boosting the UAE's industrial sector's performance and competitiveness. The council aims to create more investment opportunities, supportive policies, and enablers to stimulate local industrial investments.

The meeting reviewed several critical topics to promote national industrial growth. These included legislative aspects, proposed laws, and incentives for industrial development. The council also discussed ways to enhance the attractiveness and competitiveness of local products.

The Industry Development Council examined key performance indicators (KPIs) for 2023. The data showed a 55 percent growth in the sector's contribution to GDP, reaching AED205 billion compared to 2020. Leading sectors included petrochemicals, metal products, and construction.

UAE industrial exports also saw significant growth in 2023. The value increased by 61 percent compared to 2020, reaching AED187 billion. Metals, food, and beverages were the top export categories.

The council discussed outcomes from the Make it in the Emirates 2024 forum and plans for the next edition in 2025. The forum aims to attract local and foreign investments by highlighting competitive value and investment enablers. It showcased procurement opportunities worth AED143 billion for locally manufactured products.

New electricity tariffs for factories in northern Emirates were announced during the forum. Financial solutions worth AED2 billion were also introduced to support the industrial sector through a joint financing system.

Renewable Energy Initiatives

The council reviewed progress on connecting renewable energy production units to the electrical grid. This initiative allows consumers, including factories, to produce electricity from renewable sources. It aims to diversify energy sources and reduce carbon footprints.

The first phase of this project has been completed, with further steps planned to optimise natural resources and decrease peak electricity demand from distribution networks.

Industrial Census Project

The council discussed outcomes from the industrial census project conducted with various economic departments and statistical centres. Over 7,362 establishments participated with an over 80 percent response rate from large and medium-sized companies.

This project provided accurate data crucial for future planning in the industrial sector.

Electricity Tariff Adjustments

The new electricity tariff for the northern Emirates' industrial sector was reviewed. This adjustment aims to enhance competitiveness and increase investments in Ajman, Umm Al Qaiwain, Ras Al Khaimah, and Fujairah.

Valorising Industrial Waste

The council discussed implementing a policy for valorising industrial waste like iron scrap. This policy aims to reduce production costs and increase national added value by using waste as input in manufacturing industries such as iron, paper, and oils.

This initiative supports transitioning towards a circular economy by integrating waste into production processes more effectively.

Strategic Initiatives

The council also reviewed strategic initiatives supporting these directions. These include encouraging local and foreign investments in the industrial sector and following up on previous achievements while discussing future plans.

"Our leadership's directives focus on enhancing the role of the industrial sector for its crucial role in national economic growth," said Dr. Sultan Al Jaber. "The country offers numerous incentives and enablers which enhance international competitiveness."

"The Industry Development Council presents a model for effective partnership," he added. "The council's meetings confirm our ability to set and implement plans to develop the industrial sector."

Unified Efforts

The meeting was attended by key figures including Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; Omar Al Suwaidi; Mohammed Abdulrahman Al Hawi; Hanan Mansoor Ahli; Ahmed Mohammed Al Naqbi; Muammar Abdulla Abushehab; Osama Amir Fadl; Ahmed Al Kaabi; Rashid Abdulkarim Al Balushi; Sheikh Abdullah bin Nasser Al Nuaimi; Abdulrahman Al Shaib Al Naqbi; Hady Badri; Mohammed Obaid bin Majid Al Aleeli.

Through its meetings, the Industry Development Council works to unify efforts at federal and local levels. It aims to create an attractive business environment for investors while enhancing regional and global competitiveness in the industrial sector.

"The sixth meeting discussed several important issues," said Dr. Thani Al Zeyoudi. "We continue working together at both federal and local levels with private sector partnerships."

"We aim to enhance investment attraction," he added, "and improve Emirati industries' quality locally, regionally, and internationally."

The council continues its efforts towards achieving national targets for advancing Emirati industries while increasing their global competitiveness.

This collaborative approach ensures comprehensive policies that address all aspects from energy management to data integration plans within the industry sector.

With inputs from WAM