Yousef Al Arabi (Abu Dhabi)
With the “50 Projects”, the United Arab Emirates is entering a new phase of comprehensive economic and social growth, with which its regional and global position in all sectors is consolidated, with the promotion of upgrading the competitiveness of the outputs of the industrial sector, the quality of national products, and enhancing its competitiveness in regional and global markets.
The “National Added Value” program is one of the most prominent of these projects announced by the Ministry of Industry and Advanced Technology within the first batch of “Fifty Projects”, which is one of the most prominent projects supporting the “Fifty Charter”, by supporting the state’s directions to focus entirely on building the economy. The best and most active in the world, in a way that achieves an economic development boom, through integration between the Ministry of Industry and Advanced Technology and state institutions in all its specializations and across its federal and local levels, to build through it a global economic environment that preserves the gains achieved during the past years.
The national added value program, when applied on a local scale since 2018, contributed to redirecting 88 billion dirhams to the national economy, creating 2,000 quality job opportunities, and about 5,000 suppliers joined it, while it will enter a new phase of its application at the federal level, in which expectations will rise. The gradual implementation will start in about 45 federal entities and 15 major national companies, and more than 7,300 companies will join by the end of 2025.
The country is progressing in the implementation of these qualitative projects, supported by the testimony of international reports, as the UAE jumped five places in the world in the competitive industrial performance index issued annually by the United Nations Industrial Development Organization “UNIDO” according to the 2021 assessment, from 35th to 30th place in the index. Which monitors the performance of 152 countries, topping the performance of the Gulf and Arab countries, to continue an upward trajectory during which they have advanced nine ranks in the index during the last four years. The leading position of the state is mainly due to the vision of the wise leadership and its foresight for the future, then the state’s ability to transform aspirations into tangible reality in addition to the vitality of the UAE economy and its main sectors, which today stands out on top of the industrial sector.
The UAE’s ability to plan for the future is evident through the national strategy for industry and advanced technology “the 300 billion project”, exploring its prospects, and harmonizing the aspirations and changes taking place in the world, in terms of economic transformations and their nature, especially with regard to future sectors, and fundamental changes to the existing sectors. Perhaps the most prominent aspect of the strategy is the series of integrated initiatives and programs that seek to transform plans, initiatives and projects into reality and tangible results.
While the program is one of the main pillars of the national strategy for industry and advanced technology, which aims to enhance the competitiveness of the industrial sector locally, regionally and globally, as well as increase its contribution to the growth of the national economy of the UAE, its positive effects extend to all stages of production and supply chains, from production, storage, transportation, shipping and display of products and services To attract talent, develop human capabilities, create added value in the national economy, and support research and development projects and technical transformation.
The National Added Value Program is based on an experience previously applied at a local level, in which a group of national companies and government agencies participated, led by ADNOC, Aldar and the Department of Governmental Support – Abu Dhabi, which represents 62 local entities.
The program’s objectives include diversifying the country’s GDP, increasing the proportion of national strategic services and products in various sectors, and diversifying supply chains to reduce costs and lead times for supply operations to stimulate the work of companies in the UAE, making them more robust, flexible and competitive.
The main strength component of the program may be its ability to create an integrated economic cycle in the supply and demand system, by redirecting purchases to the local economy, as the program increases the demand for local products and services, and contributes to pushing national institutions, local suppliers and their partners from foreign companies to increase and developing their production to meet this increase in demand, thus enhancing the economic cycle.
The program is integrated with several other initiatives, as seeking to respond to the requirements of federal and local government agencies and program partners, will prompt suppliers wishing to grow and expand their business through the program to enhance investment in research and development, and will open the door to attracting new foreign investments to the market to benefit from the growth in demand. Real-time business by launching projects or entering into partnerships with local suppliers.
The National Added Value Program not only stimulates supply and demand, but also provides a financing cover for companies that have obtained the program’s certificate and wish to develop their businesses, through a package of special financing programs provided by the Emirates Development Bank, the strategic partner of the Ministry.
The Emirates Development Bank is considered the main financial driver for economic diversification and industrial development projects in the country since the launch of its new strategy last April.
The Bank has allocated a direct and indirect financial portfolio of 30 billion dirhams, of which priority industrial sectors will be financed for the UAE, and support, financing, consultations and feasibility studies will be provided to about 13,500 companies, in order to enhance the strategic objectives, most notably the adoption of advanced policies to increase industrial productivity and raise industrial productivity. The volume of exports and the improvement of the country’s ranking on the competitive industrial performance index.
Integration between the bank and the program
The integration between the role of the Ministry of Industry and Advanced Technology through the National Added Value Program and the Emirates Development Bank comes from several angles, most notably giving priority to members of the program from large, medium, small and emerging companies, to obtain long-term financial facilities and solutions, which support companies in developing their industries, and adapting to Terms and requirements of the national added value program.
It follows that companies holding membership certificates in the National Value Added Program will be given preference in government contracts and purchases if the program conditions apply to them, which will reflect positively on their financial situation, and also their ability to cover their obligations after obtaining financing from the Emirates Development Bank, and with a positive return. Also on the two parties by providing financial liquidity and its flow, exchanging financial benefits, and achieving the desired goals, in light of important partnerships in terms of advisory and training support, and quality and competitiveness capabilities, both internally and externally.
The program supports emerging companies and entrepreneurs in the industrial sector when they obtain national value-added certificates, by obtaining greater opportunities to win government contracts, and it will give small and medium-sized companies the opportunity to grow by benefiting from the development of local value chains, and enhances the opportunities for entrepreneurs and their small, medium or The big deal in entering into international partnerships.
It is noteworthy that the fifty projects will contribute to achieving qualitative leaps for the national economy, which is a top national priority for the government of the UAE, and an essential factor in ensuring a decent life for its people, residents on its land and future generations, and in a way that supports drawing the future of the state for the next fifty years.
The 50 projects cover a number of vital sectors, including health, education, social development, economy, environment, housing, tourism, entrepreneurship, investment, skills, societal values, culture, family relations, sports, youth, food security, science and advanced technology, and others.
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