ADDED, Tawazun Council partner to boost industrial sector

Two entities will focus on programmes aim to more than double the sector size to Dh172 billion, create 13,600 new jobs, and contribute to increasing Abu Dhabi's non-oil exports to Dh178.8 billion by 2031

Arafat Al Yafei, executive director of ADDED’s Industrial Development Bureau (IDB), and Faiz Al Nahddy, MD and CEO of Tawazun Industrial Park, signed the agreement. — Wam

By Wam

Published: Wed 8 Mar 2023, 5:47 PM

The Abu Dhabi Department of Economic Development (ADDED) and Tawazun Industrial Park, established by Tawazun Council, have signed a memorandum of understanding (MoU) to boost the industrial sector's competitiveness and further develop it by implementing initiatives and programmes of the Abu Dhabi Industrial Strategy (ADIS).

The agreement was signed by Arafat Al Yafei, executive director of ADDED’s Industrial Development Bureau (IDB), and Faiz Al Nahddy, MD and CEO of Tawazun Industrial Park, in the presence of senior officials from both sides.

The MoU focuses on delivering the initiatives launched by IDB to achieve ADIS objectives by investing Dh10 billion in six transformational programmes. These programmes aim to more than double the sector size to Dh172 billion, create 13,600 new jobs, and contribute to increasing Abu Dhabi's non-oil exports to Dh178.8 billion by 2031.

The six programmes under ADIS are Industry 4.0, Circular Economy, Talent Development, Ecosystem Enablement, Homegrown Supply Chain, and Value Chain Development.

This partnership is part of the ongoing efforts to enhance and deepen economic diversification. Manufacturing is a significant player in this strategy. The sector contributed 16.1 per cent of non-oil GDP and 8 percent of total GDP in the Emirate by the end of Q3 2022, and it grew by eight per cent during the same period. This has supported Abu Dhabi's economy in recording the highest growth rate in the Middle East and North Africa (Mena) at 10.3 per cent compared to the same period of 2021.

The cooperation between ADDED and Tawazun will include the Land Incentives programme, offering long-term industrial land lease contracts through rental rebate with rates as low as Dh5 per square metre. The Energy Tariff Incentive Programme (ETIP 2.0) offers preferential rates for gas and electricity to the industrial sector based on eligibility criteria, including economic impact, Emiratisation rate, and energy management efficiency. The Abu Dhabi Smart Manufacturing Index will guide and facilitate the private sector players' transition to Industry 4.0 technologies, applications, and methods.

A joint committee will coordinate and oversee the implementation of the MoU and organise workshops to raise awareness about the programmes, initiatives, and the role of ADIS in supporting industrial establishments.

Al Yafei said: “We are honoured to enhance cooperation with Tawazun Industrial Park, a key pillar of industrial sector in Abu Dhabi and a regional hub of defense and security industries, as we are rolling out initiatives and building partnerships with major local and global players to deliver against Abu Dhabi Industrial Strategy."

“During the last year, the manufacturing sector in Abu Dhabi continued its strong performance, and its achievements form a solid base to implement ADIS initiatives designed to increase access to financing, enhance ease of doing business, and attracting foreign direct investment to accelerate transition to a circular, smart and sustainable economy," he said.

Shareef Hashim Al Hashmi, CEO of Tawazun Council and Chairman of Tawazun Industrial Park, said this agreement reflects Tawazun Council’s keen interest to strengthen the industrial sector by implementing programmes and initiatives to enhance Abu Dhabi’s competitiveness.

"The role of defense and security industries in diversification and sustainable, comprehensive development is growing steadily, and our cooperation with various government entities aims to enhance an attractive ecosystem for defense and security companies."

He further explained the strategic cooperation between ADDED and Tawazun Council will support defense and security industries, enhance competitiveness, and increase export opportunities.

“This initiative will play a major role in developing defense and security industries and will support Tawazun Industrial Park in attracting global investors to build industrial establishments in Abu Dhabi, benefiting from these several incentives programmes," Al Nahddy said. — Wam