The UAE Minister of Industry and Advanced Technology, Dr Sultan bin Ahmed Al Jaber, has highlighted opportunities for investors and manufacturers in the industrial sector while calling for a collaborative effort between the Ministry, local authorities, the private sector, and financial institutions to empowering the industrial ecosystem.
In an interview with the state-run Emirates News Agency (Wam), Dr Al Jaber said that the UAE has achieved significant growth and progress across various sectors.
He added: “However, the industrial sector still has much work to do to keep pace with that growth and our leadership’s ambitions for the future.
“As such, the Ministry of Industry and Advanced Technology will continue to exert every effort to enable the sector, enhance its role in stimulating the national economy, and increase its contribution to the GDP to $81.67 billion (AED 300 billion) by 2031.”
Following is an excerpt of Dr Al Jaber’s interview with state-run news agency Wam:
Can you tell us about the role of the Ministry of Industry and Advanced Technology in supporting the growth of the industrial sector in the UAE during the coming decades?
To answer this question, we have to go back to the beginnings. Until recently and more specifically up until the Covid pandemic, the industry was just a sector associated with a ministry.
That changed in July 2020 with the establishment of a stand-alone Ministry of Industry and Advanced Technology when the portfolio of the industry was merged with the Standards and Metrology Authority as well as the Advanced Technology mandate to establish a solid base and an independent body focused specifically on developing and regulating the industrial sector and enhancing industrial competitiveness to build industrial resilience and realise the national development agenda.
The mandate of the Ministry is to increase the industrial sector’s GDP contribution and ensure a sustainable knowledge-based economy centred on the adoption of advanced technology empowered by the National In-Country Value Programme (ICV programme) and focused on key priority industrial sectors.
With that in mind, the Ministry immediately went to work on preparing the National Strategy for Industry and Advanced Technology, which is based on two tracks.
The first track focuses on empowering the development of our existing and priority industries and the second track is focused on developing new competitive advantages for the industries of the future.
To achieve those tracks, the strategy includes more than 16 initiatives and projects. Implementation has begun and the Ministry continues to work on ensuring that it creates the environment and ecosystem that empowers the much needed major leap in this vital sector.
The strategy of the Ministry has four objectives: Creating a suitable and attractive business environment for local and international investors, supporting the growth of national industries and enhancing their competitiveness, stimulating innovation and the adoption of advanced technology in the industrial sector, and implementing solutions to highlight the nation’s unique value proposition as a leading global destination for industries of the future.
In an effort to ensure that the strategy is built in a practical, relevant and inclusive way, the Ministry organised a series of Future of Industry Dialogue sessions with industrialists and stakeholders. These engagements are ongoing and continue to be critical to enhancing ways to facilitate the advancement of the sector and remove any barriers.
The UAE has achieved significant growth and progress across various sectors. However, the industrial sector still has much work to do to keep pace with that growth and our leadership’s ambitions for the future.
As such, the Ministry of Industry and Advanced Technology will continue to exert every effort to enable the sector, enhance its role in stimulating the national economy and increase its contribution to the GDP to $81.67 billion (AED 300 billion) by 2031.
What has been achieved so far since the establishment of the ministry?
In 2021, we accomplished a number of important steps. UAE industrial exports achieved record growth, rising to $31.5 billion (AED 116 billion), compared to $21.23 billion (AED 78 billion) two years ago, while the contribution of the industrial sector to GDP reached $38.11 billion (AED 140 billion).
More than 220 new factories went online. As a result, the UAE climbed in the global industrial competitiveness index from 35th to 30th place, according to the United Nations Industrial Development Organisation (UNIDO).
The Ministry has also launched and begun implementing the ICV Programme at the national level, with the aim of redirecting the largest possible share of the procurement of products and services to the national economy, which in 2021 amounted to $11.27 billion (AED 41.4 billion) compared to $7.35 billion (AED 27 billion) in 2018.
The programme has succeeded in attracting 45 federal government agencies and 13 major national institutions and has added 1,000 jobs for UAE nationals in the private sector.
We are also joining forces with the “Nafis” programme through the National In-Country Value Programme to connect UAE nationals with job opportunities and enroll them in advanced training courses.
Updating legislation and regulations When it comes to legislation, we have amended a policy, the food “Traffic Light Nutritional Labelling System” and made it optional, which is expected to save $381.1 million (AED 1.4 billion) for the F&B sector over the next five years. This was in addition to saving $1.9 million (AED 7 million) in the food packaging industry by updating technical requirements.
Additionally, we have managed to reduce measurement errors, including for gold scales and fuel meters and adopted 616 standards and technical legislations and engaged the private sector in the development of 30 percent of our standards.
The Ministry also established the National Standards and Metrology Committee that includes key government agencies and updated the Made in the Emirates labelling system to enhance the quality of national products and support their competitiveness in local and international markets.
In addition, we launched the Make it in the Emirates laboratory programme in the F&B sector in partnership with a number of food manufacturers including Procter & Gamble to build capacities for SMEs.
Industrial accelerators, financing solutions and attracting investment The Ministry is working on developing strategic frameworks for cooperation with key stakeholders with the aim of supporting the growth of national industries and enhancing their competitiveness, as well as attracting foreign industrial investments, ideas, and talent.
For example, financing solutions were secured from the Emirates Development Bank for priority sectors and for the uptake of advanced technology. To date, companies have received $272.2 million (AED 1 billion) to date.
Moreover, to help attract investments, the Ministry developed an investor’s guide to facilitate business and encourage foreign investments.
More than 3,200 factories were granted custom duties exemptions on industrial inputs worth $735 million (AED 2.7 billion).
Incentive packages were secured to support the Make in the Emirates campaign, such as the strategic partnership between MoIAT and Dubai Industrial City to enhance the performance of the industrial sector.
What is required of existing and new manufacturers? As well as investors?
Empowering the industrial ecosystem requires a collaborative effort between the Ministry, local authorities, the private sector, and financial institutions.
There is a real opportunity for investors today to join us on this journey and I invite them to take advantage of the unique investment ecosystem and incentives in the UAE.
In addition, We invite and urge UAE companies to contribute to supporting the development of small and medium enterprises through the National ICV Programme and to back locally produced products by giving them priority in the procurement process; which in turn will support local value chains, enhance economic self-sufficiency and facilitate the development of national capability and expertise.
In terms of local manufacturers, it is important that they keep pace with advanced technology applications and automation to improve their productivity, enhance their efficiency and improve their competitiveness.
Existing manufacturers and new investors should focus on key sectors as outlined in the national industrial strategy, high-value industries, as well as R&D.
Finally, we encourage manufacturers to take advantage of the incentives that the Ministry offers, such as green financing and technology financing through the Emirates Development Bank, which aims to support investment in sustainability projects and advanced technology.
What is the role of advanced technology in the national industrial system?
The UAE has many competitive advantages, most notably a modern infrastructure supported by advanced technology. In line with the national strategy for the industry, we focused on the opportunities that help the UAE become a global destination for industries of the future.
With that in mind, the Ministry launched the Fourth Industrial Revolution Programme (Industry 4.0), to accelerate the integration of 4IR solutions and applications across the UAE’s industrial sector, enhance the UAE’s overall industrial competitiveness, drive down costs, increase productivity and efficiency, enhance quality, improve safety and create new jobs.
One key element of the programme is the implementation of the Smart Industry Readiness Index which helps companies understand their current digital maturity as well as contributes to increasing their awareness of 4IR applications. To date, the Ministry has assessed 160 industrial companies with a target of 200 by mid-2022.
The programme also includes the Industry Champions 4.0 Network, in which leading local and international companies have united to share best-practice in the deployment of 4IR technologies across the UAE’s industrial sector. To date, 14 national and global entities have joined the network.
Moreover, in partnership with the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), we launched the Leadership 4.0 initiative aimed at developing knowledge and skills around 4IR solutions in smart manufacturing and how it helps the implementation of the UAE’s industrial strategy.
The first batch of 30 executives have already concluded the programme. Our target is to train more than 100 executives and leaders from the industrial sector by the end of the year.
In addition, we developed a national guide in cooperation with the Federal Competitiveness and Statistics Centre to measure spending on research and development in the government sector.
With the aim of enhancing the contribution of research and development to sustainable economic growth in the UAE, focusing on strategic and priority sectors, the Emirates Research and Development Council was established.
Consequently, the Ministry developed a policy for R&D governance, which establishes a national system for research and development supported by scientific and research competencies and capabilities to unify efforts towards achieving national priorities
In addition, introductory sessions for technology startups were carried out in Spain, Israel, Korea and France to develop national capabilities and exchange knowledge.
Through all these initiatives, we are following a clear roadmap aimed at enhancing the UAE’s position as a global destination for advanced technology application and development, contributing to building a resilient economy and enhancing readiness for the future.
How do you see the success of the UAE in organising Expo 2020 Dubai and its implications for the industrial sector?
I think the numbers, level of engagement and convening power speaks for themselves. Over 24 million guests, 192 nations, in addition to international organisations came together over a span of six months to truly connect minds and create the future.
Simply put, Expo 2020, despite global unprecedented challenges, was a resounding success and a testament to our leadership’s perseverance and unwavering vision.
Expo 2020 is and will continue to be a reflection of the world’s confidence in our nation, and its ability to mobilise and motivate positive social and economic progress. It has been an honour to be a part of the Expo 2020 higher committee that supported the effort.
The Ministry of Industry and Advanced Technology is committed to continuing to connect minds and create the future through its engagements with the public and private sectors and all stakeholders in partnership to realise the ambitions of our leadership in the industrial sector and achieve sustainable industrial economic growth.
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