16 Muharram 1446 - 22 July 2024
    
Sign up for newsletter
Eye of Riyadh
Business & Money | Wednesday 8 March, 2023 5:10 pm |
Share:

ADDED and Tawazun Council partner to support growth and competitiveness of Industrial sector

  • The partnership will support achieving objectives of Abu Dhabi Industrial Strategy
  • Growth of manufacturing sector by 8.1% enhances economic diversification
  • Industrial sector supports Abu Dhabi economy to record highest growth rate in MENA

The Abu Dhabi Department of Economic Development (ADDED) and the Tawazun Industrial Park, created by Tawazun Council, signed a Memorandum of Understanding (MoU) to further develop the industrial sector and enhance its competitiveness by implementing initiatives and programmes of the Abu Dhabi Industrial Strategy (ADIS), which aim to strengthen the Emirate’s position as the region’s most competitive industrial hub.

 

Mr. Arafat Al Yafei, the Executive Director of ADDED’s Industrial Development Bureau (IDB) and Eng. Faiz Al- Nahddy, MD & Chief Executive Officer of Tawazun Industrial Park, signed the MoU in the presence of senior officials from both sides.

 

The agreement focuses on delivering the initiatives launched by IDB to achieve ADIS objectives by investing AED10 billion in six transformational programmes to more than double the sector size to AED172 billion, create 13,600 new jobs, and contribute to increase Abu Dhabi’s non-oil exports to AED178.8 billion by 2031.

 

ADIS six transformational programmes include Industry 4.0, Circular economy, Talent development, Ecosystem enablement, Homegrown supply chain, and Value chain development.

 

The partnership is part of the ongoing efforts to enhance and deepen economic diversification. Manufacturing is a major player in this strategy; the sector has contributed 16.1% of non-oil GDP and 8% of total GDP of the Emirate by end of Q3-2022 and it grew by 8% during the same period, supporting Abu Dhabi economy to record the highest growth rate in the Middle East and North Africa (MENA) at 10.3% compared to the same period of 2021.

 

This vital role of industrial sector in Abu Dhabi reflects the success of plans and programmes implemented as the emirate invested more the AED 51 billion in the last 15 years to build a world-class manufacturing infrastructure and business-supportive regulatory frameworks.

 

The cooperation between ADDED and Tawazun will include the Land Incentives programme which offers long term Industrial land lease contracts through rental rebate with rates as low as AED 5 per square meter; the Energy Tariff Incentive Programme (ETIP 2.0) which offers preferential rates for gas and electricity to industrial sector based on eligibility criteria that include economic impact, Emiratisation rate, and energy management efficiency; and ‘Abu Dhabi Smart Manufacturing Index’ to guide and facilitate 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 role of ADIS in supporting industrial establishments.

 

Mr. Arafat Al Yafei, the Executive Director of IDB, 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”.

 

Mr. 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 explains: “The strategic cooperation between ADDED and Tawazun Council will support defense and security industries, enhance competitiveness, and increase export opportunities”.

 

Eng. Faiz Al Nahddy, the MD & Chief Executive Officer of Tawazun Industrial Park, said: “We are pleased to have ADDED’s support to attract industrial investments to Abu Dhabi and to be a member of the Land Incentives programme, recently launched by ADDED”.

 

“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 added. 

 

Share:
Print
Post Your Comment
ADD TO EYE OF Riyadh
RELATED NEWS
MOST POPULAR