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The Abu Dhabi Department of Economic Development (ADDED) and the Tawazun Industrial Park have signed an agreement to implement the initiatives launched by the Industrial Development Bureau (IDB).
The programmes are designed to achieve the objectives set by the Abu Dhabi Industrial Strategy (ADIS), which was launched last year as part of the emirate’s move to boost its industrial sector.
The government unveiled in June 2022 its new Abu Dhabi Industrial Strategy (ADIS), which includes six transformational programmes that are expected to double the industrial sector’s size to AED 172 billion and create 13,600 jobs, as well as expand the emirate’s non-oil exports to AED 178.8 billion.
The six transformation programmes were identified as “industry 4.0, circular economy, talent development, ecosystem enablement, homegrown supply chain and value chain development”.
The new agreement between ADDED and Tawazun focuses on delivering the ADIS objectives, according to a statement on Wednesday.
Tawazun Industrial Park, which was created by Tawazun Council, is the emirate’s manufacturing zone dedicated to companies in the defense, security and aerospace sectors.
Under the agreement, ADDED and Tawazun will work together to implement some initiatives, including the Land Incentives Programme, which offers long-term industrial land lease contracts through rental rebate with rates as low as AED 5 per square metre and the Energy Tariff Incentive Programme (ETIP 2.0), which offers preferential rates for gas and electricity to the industrial sector.
“The strategic cooperation between ADDED and Tawazun Council will support defence and security industries, enhance competitiveness and increase export opportunities,” said Shareef Hashim Al Hashmi, CEO of Tawazun Council and Chairman of Tawazun Industrial Park.
Growth
As of the third quarter of 2022, Abu Dhabi’s manufacturing sector contributed 16.1% of the emirate’s non-oil GDP and 8% of total GDP.
In the last 15 years, the emirate invested more than AED 51 billion to establish a “world-class” manufacturing infrastructure and “business-supportive” regulatory frameworks.
“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 the ease of doing business and attracting foreign direct investment to accelerate transition to a circular, smart and sustainable economy,” said Arafat Al Yafei, Executive Director of Industrial Development Bureau.
(Writing by Cleofe Maceda; editing by Seban Scaria)
