Arab News, Sun, Mar 24, 2024 | Ramadan 14, 1445
UAE’s industrial exports surge by 60% to $50bn in 3 years: minister
Emirates:
The UAE’s industrial exports surged by 60 percent over the past three years,
amounting to a projected 187 billion dirhams ($50.9 billion), according to a
minister.
Sultan Ahmed Al-Jaber, the minister of industry
and advanced technology, underscored in a statement to the Emirates News Agency
the pursuit of initiatives aimed at bolstering industrial prowess and elevating
competitiveness on both national and international fronts.
Al-Jaber emphasized his ministry’s commitment to
enhancing in-country value and boosting manufacturing processes, promoting
supply chain security and economic competitiveness, thereby increasing domestic
product support.
He said: “Industrial exports have grown by 60
percent with significant progress being made last year, amounting to a projected
187 billion dirhams compared to 117 billion dirhams in 2020. Industrial
productivity has increased by 18 percent compared to 2020.”
Al-Jaber added: “In 2023, the UAE ranked first
regionally and 29th globally in UNIDO’s (UN Industrial Development Organization)
Competitive Industrial Performance Index, climbing seven spots since 2020.”
The CIP Index indicates the ability of countries
to produce and export manufactured goods competitively.
In 2021, the UAE secured 29th place, while Saudi
Arabia claimed 35th. Qatar followed closely behind in 50th position, with
Bahrain trailing in 51st. Oman clinched 56th place, and Kuwait settled in 62nd.
“It (CIP) provides a graphical summary capturing
the competitive performance of each of the 152 countries included in the 2020
CIP Index, relative to their performance in previous years and compared to that
of the rest of the world,” according to UNIDO.
The industry’s contribution to the UAE’s economy
has increased by 49 percent since the Ministry of Industry and Advanced
Technology was established in 2020, according to the minister.
Prior to its creation, the sector’s contribution
to gross domestic product was 132 billion dirhams, which has now reached a
projected 197 billion dirhams. The industry division achieved a 9 percent
increase compared to 2022 figures.
Highlighting the tangible outcomes of the
ministry’s endeavors, Al-Jaber continued: “This has contributed to greater
national industrial security and self-sufficiency, resulting in 9.3 billion
dirhams worth of import substitution projects.”
He underscored that one of the department’s
leading initiatives is the National In-Country Value Programme, which has
redirected over 237 billion dirhams spent outside the UAE back into the national
economy.
The primary objective of the ICV Program is to
enhance economic performance and bolster local industries by channeling a larger
portion of public expenditure into the national economy.
Administered by the Ministry of Industry and
Advanced Technology, this initiative is designed to localize the supply chain,
foster the emergence of new regional industries and services, attract foreign
investments, as well as promote economic diversification, generate significant
job opportunities within the private sector, and elevate the national GDP.
It also aims to boost spending on research and
development and advanced technology and augment the private sector’s overall
contribution to economic output.
“This recapturing of national procurement has
contributed to the growth and competitiveness of the industrial sector and has
directly enhanced self-sufficiency. So far, 16,000 Emiratis have been employed
across ICV-certified companies,” Al-Jaber added.
The intiative operates within an extensive network
of stakeholders, encompassing two key groups, including ICV certifying bodies
duly authorized by the Ministry of Industry and Advanced Technology, which are
responsible for conducting thorough technical assessments on company
certification applications.
These entities issue certificates in compliance
with the ministry’s stipulated criteria.
There are also certified companies that have
successfully acquired ICV accreditation from the designated licensed bodies.
These include Al Sharq Plas LLC, Marks Decoration
and Seacorr Engineering Services LLC, as well as Total Connexons Electrical LLC
and others.