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UAE industrial exports surge 48.7% to Dh116b

The contribution of the industrial sector to GDP reached Dh140 billion in 2021 and the ministry is on track to achieve the Industrial Strategy goal to increase the contribution of the sector to Dh300 billion by 2031, according to Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology

The UAE’s industrial exports achieved a record growth of 48.7 per cent, rising to Dh116 billion in 2021 from Dh78 billion two years ago, Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said.

The contribution of the industrial sector to GDP reached Dh140 billion in 2021 and the ministry is on track to achieve the Industrial Strategy goal to increase the contribution of the sector to Dh300 billion by 2031, the minister said in an interview.

He said one key achievement of the ministry was the implementation of the In-Country Value Programme (ICV) at the national level, which succeeded in redirecting Dh41.4 billion into the economy in 2021. The ministry also secured Dh1 billion in financing for companies in the industrial sector to date, through the Emirates Development Bank (EDB).

On Sunday, EDB said it would facilitate further direct and indirect lending totalling Dh30 billion by 2025 as part of its new strategy to propel industrial and technological growth. The strategy, which was launched last year, aims to support UAE’s industrial development, accelerate the adoption of advanced technologies, and empower the growth of SMEs in the UAE. EDB said the Dh30 billion lending initiative is expected to support more than 13,500 companies.

The minister said the remarks of Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, during the World Government Summit (WGS), embody the vision of the UAE’s leadership to advance the UAE’s national industrial sector.

Sheikh Mansour’s remarks presented a comprehensive roadmap highlighting the importance of developing the industrial sector and its role in enhancing self-sufficiency and resilience, diversifying the economy, supporting national manufacturing, and enhancing competitiveness

Al Jaber said as a legislative and regulatory authority, the Ministry of Industry “works to create an investment, legislative and technical ecosystem that is conducive to the growth of the industrial sector. The Ministry does this in coordination, cooperation and integration with all federal and local authorities”

“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,” said Al Jaber.

Empowering the industrial ecosystem requires a collaborative effort between the ministry, local authorities, private sector and financial institutions - The ministry is working on enhancing the competitive advantages of national products, he said.

Al Jaber urged local companies to contribute to supporting the development of small and medium enterprises through the ICV programme, and to back locally produced products by giving them priority in the procurement process. “We also urge manufacturers to enhance the quality of products and efficiency of processes to enhance competitiveness.”

He said the National Strategy for Industry and Advanced Technology 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.

He explained that the strategy 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.

According to Al Jaber, among the great industrial success stories in the UAE are Burouge, Edge, Emirates Global Aluminum (EGA), RAK Ceramics, and Al Khaleej Sugar Factory.

Burouge, a leading company in the petrochemicals industry has multiplied its production by 10-fold since 2001. Today, it produces five million tonnes of polyolefins annually with sales of more than $6 billion in 2021.

Edge, which is among the world’s 25 largest defence companies, has annual sales of more than $5 billion. EGA manufactures 2.5 million tonnes of cast aluminium annually, which represents four per cent of global production and nearly half of the aluminium produced in the GCC.

RAK Ceramics is the fourth largest global producer in its sector and has a capacity of 123 million square meters of ceramics per year. Al Khaleej Sugar Factory is the largest stand-alone sugar refinery in the world with a production capacity of more than 7,000 tonnes per day.

— issacjohn@khaleejtimes.com