ADDED, Tawazun Council partner to boost industrial sector

The Abu Dhabi Department of Economic Development (ADDED) and Tawazun Industrial Park, established by Tawazun Council, have signed a memorandum of understanding (MoU) to boost the industrial sector's competitiveness and further develop it by implementing initiatives and programmes of the Abu Dhabi Industrial Strategy (ADIS).

The agreement was signed by Arafat Al Yafei, executive director of ADDED’s Industrial Development Bureau (IDB), and Faiz Al Nahddy, MD and CEO of Tawazun Industrial Park, in the presence of senior officials from both sides.

The MoU focuses on delivering the initiatives launched by IDB to achieve ADIS objectives by investing Dh10 billion in six transformational programmes. These programmes aim to more than double the sector size to Dh172 billion, create 13,600 new jobs, and contribute to increasing Abu Dhabi's non-oil exports to Dh178.8 billion by 2031.

The six programmes under ADIS are Industry 4.0, Circular Economy, Talent Development, Ecosystem Enablement, Homegrown Supply Chain, and Value Chain Development.

This partnership is part of the ongoing efforts to enhance and deepen economic diversification. Manufacturing is a significant player in this strategy. The sector contributed 16.1 per cent of non-oil GDP and 8 percent of total GDP in the Emirate by the end of Q3 2022, and it grew by eight per cent during the same period. This has supported Abu Dhabi's economy in recording the highest growth rate in the Middle East and North Africa (Mena) at 10.3 per cent compared to the same period of 2021.

The cooperation between ADDED and Tawazun will include the Land Incentives programme, offering long-term industrial land lease contracts through rental rebate with rates as low as Dh5 per square metre. The Energy Tariff Incentive Programme (ETIP 2.0) offers preferential rates for gas and electricity to the industrial sector based on eligibility criteria, including economic impact, Emiratisation rate, and energy management efficiency. The Abu Dhabi Smart Manufacturing Index will guide and facilitate the private sector players' transition to Industry 4.0 technologies, applications, and methods.

A joint committee will coordinate and oversee the implementation of the MoU and organise workshops to raise awareness about the programmes, initiatives, and the role of ADIS in supporting industrial establishments.

“This initiative will play a major role in developing defense and security industries and will support Tawazun Industrial Park in attracting global investors to build industrial establishments in Abu Dhabi, benefiting from these several incentives programmes," Al Nahddy said. — Wam