The value of Abu Dhabi government tenders awarded to companies holding in-country value certificates surged to Dh44.17 billion ($12 billion), an increase reflecting the strength of the emirate’s industrial economy.
The figure is nearly 17 times the Dh2.5 billion recorded a year earlier and was distributed through more than 3,500 tenders, also a substantial rise from the 707 awarded in 2022, the Abu Dhabi Department of Economic Development said on Saturday.
Tenders with local content value comprised nearly 52 per cent of total those awarded by the Abu Dhabi Local Content Programme to ICV certificate-holding companies last year, compared to 41.2 per cent a year earlier, the department said.
Those were able to channel more than Dh22.8 billion back into the local economy, boosting support for locally manufactured goods, advancing Emiratisation and promoting economic diversification, it said.
The department said the tender figures mirror the success of the Abu Dhabi Industrial Strategy – the government’s plan to more than double the size of the manufacturing sector to Dh172 billion, create 13,600 skilled jobs and increase non-oil exports by 143 per cent to Dh178.8 billion by 2031.
“The industrial sector plays a pivotal role in driving forward our next phase of development, aiming to accelerate growth while placing skills development and sustainability at the top of our strategic priorities,” Ahmed Al Zaabi, chairman of the Abu Dhabi Department of Economic Development, said.
The number of new industrial licences in Abu Dhabi jumped more than 51 per cent to 363 in 2023, from 240 a year earlier, representing a total investment of nearly Dh10.8 billion, the department said.
The number of active factories in the emirate rose by nearly 12 per cent to 1,103, from 987 in 2022, with total capital investment hitting almost Dh374 billion, it said.
Meanwhile, the Industrial Development Bureau, the Abu Dhabi Department of Economic Development’s arm developing and regulating the industrial sector, reported that the number of highly-skilled jobs in the emirate reached 16,810 in 2023, up 13.6 per cent from the end of 2022.
“The transformational programmes of the [ADIS] provide ample opportunities for talent, businesses, and investors who share our ambition to employ innovative methods and techniques associated with Industry 4.0, the circular economy and sustainability to shape Abu Dhabi’s manufacturing sector,” Mr Al Zaabi said.
The UAE’s ICV programme, headed by the UAE Ministry of Industry and Advanced Technology, is part of the UAE’s Projects of the 50 that aims to boost the growth of domestic industries by redirecting half of government spending on procurements and tender contracts into the national economy by 2031.
The programme has expanded significantly since its launch and has supported the goals of the Make in the Emirates campaign, which was launched by the MoIAT to attract investments and promote sustainable industrial development in the UAE.
The unified platform aims to consolidate the ICV certification process in a single ICV certificate that can be used by a supplier who intends to be part of the procurement process of participating entities, whether as a primary or secondary supplier.
The ICV programme is also part of Operation 300bn, the UAE’s strategy to position it as an industrial centre, focusing on increasing the industrial sector’s contribution to GDP to Dh300 billion by 2031.
The UAE industrial sector’s contribution to gross domestic product reached about Dh197 billion in 2023, with the country achieving 30 per cent of Operation 300bn’s target since its 2021 launch, officials said in January.
Recent Comments