More than 6,000 factories across the UAE will benefit from the UAE cabinet’s decision to support the industrial sector by reducing electricity consumption fees for large, medium and small facilities, according to statistics from the Ministry of Energy.
According to the UAE’s minister of energy, Suhail bin Mohammed Faraj Faris Al Mazrouei, the reduced tariffs will be in effect as of the fourth quarter of this year, and will help achieve sustainable growth by reducing the country’s dependence on non-environmentally friendly energy sources such as liquid fuels.
Electricity consumption charges for large factories will be reduced by 29 percent, while small and medium factories will have their fees reduced by 10 and 22 percent, respectively.
Al Mazrouei said the initiative is also expected to help the UAE meet its Emiratisation targets.
“Large factories are major contributors to the national economy and help meet Emiratisation targets by generating job opportunities for UAE nationals,” he said. “The initiative is not confined to a certain sector, but rather addresses the entire industry platform.
“However, the focus has been laid on large factories on account of their major contributions to the national industries,” he added.
Mohamed Mohamed Salad, the director general of the Federal Electricity and Water Authority, said that the initiative will benefit factories of all kind.
“The industry sector is a main driver of long-run growth and accounts for more than 25 percent of the authority’s income,” he said, adding that he believes that the industrial sectors in Ras Al Khaimah and Fujairah could be the largest beneficiaries of the initiative.”For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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