A total of 37 projects covered by industrial licenses entered into production in Abu Dhabi in 2017, an 85 percent increase from the previous year, according to figures released by the Industrial Development Bureau of the Department of Economic Development (DED).
The total value of the investments was approximately AED 6.4 billion, distributed among 29 factories in Abu Dhabi, six in Al Ain and two in the Al Dhafra area.
The report noted that licence activities included over 160 for chemical industries, 428 for metal industries, 393 building material licenses, 210 for fiberglass, plastic and sponge, 17 for wood, cardboard and paper industries, 125 for food industries, 86 equipment and devices licenses, 43 licenses for clothing and leather industries, and 26 for recycling industries.
DED undersecretary Khalifa bin Salem Al Mansouri noted that the government of Abu Dhabi is working to promote the role of the industrial sector as one of the main drivers of the emirate’s economy, by targeting particular industrial areas.
The report also included a number of other indicators, the most important of which shows that 86 new licenses were issued in 2017, up from 22 in 2016. Of these, 37 moved into the production stage, compared to 20 the previous year.
Additionally, 684 licenses for projects already in production were renewed, up from 650 in 2016, while 287 licenses in the ‘under process’ stage were renewed, up from 257 in 2016.
Al Mansouri added that in 2018 the Industrial Development Bureau will focus on providing a strong investment environment that supports the industrial sector and meets the needs of local and international investors, such as industrial funding, intellectual property protection and foreign ownership laws.
“This will require a major change in the growth of the industrial sector, through the shift from government investment in the industrial sector to investment in policies and initiatives that will improve competitiveness and maximise the attractiveness of the emirate of Abu Dhabi for investors willing to get involved in industrial activities in the emirate,” he said.
In 2017, the bureau launched the “Industry Pioneers” license, which takes the legal form of an individual corporation. The license can be issued within 15 minutes and is valid for a year, and is renewable without the requirement of having industrial land allocated or having an establishment contract, which is the case for other legal entities.
According to bureau figures, 86 Industry Pioneer licences were issued across various types of industries.
Lastly, the bureau’s report noted that 28,404 transactions related to industrial licencing were completed during 2017, an 8.3 increase from the previous year. Of these, 26,400 were for customs exemptions.For all the latest business 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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