Industry Development Council: ‘UAE’s new industrial regulation and development law paves way for future of industry’
Council reviews the impact of the National In-Country Value program on strengthening supply chains and creating growth opportunities in vital industries
• The law represents a key pillar for enhancing the performance of the sector as well as empowering and enhancing integration and partnerships in national industrial projects
• The council supports the Make it in The Emirates initiative and its goal to achieve self-sufficiency within priority and future industries
• The law strengthens the UAE’s position as an industrial global hub that attracts quality investments through incentives and enablers, including the National In-Country Value program (ICV), Industry 4.0, and Technology Transformation Program.
• Enablers and incentives support the industrial sectors’ attractive business environment and stimulate innovation as well as the adoption of advanced technology.
• UAE Cabinet approves new policy granting exclusive customs exemptions for imported materials that cannot be sourced locally to boost added industrial value and develop national supply chains.
The Chairman and members of the council began the meeting by highlighting that the decision by His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, to issue federal Decree-Law No. 25 of 2022, regarding the regulation and development of industry, will boost the industrial sector’s performance, as well as empower and enhance integration and partnerships in national industrial projects. The law will ultimately strengthen the UAE’s position as a leading global destination for industrial investments.
The council reviewed the previous meeting’s recommendations and achievements. In addition, members discussed projects that aim to support the industrial business environment and the positive impact resulting from the emirates of Ras Al Khaimah and Fujairah joining the National In-Country Value program.
The council supports the Cabinet’s decision to exempt certain imports from customs fees, which will positively impact the industrial sector through stimulating production growth, increasing industrial added value, developing national supply chains, manufacturing new products, and integrating and unifying customs exemption services. The decision will benefit industry at the federal level, in addition to local customs authorities. It will also contribute to updating and promoting factory data and products and enhancing local purchasing opportunities.
The meeting was attended by His Excellency Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, Vice Chairman of the Industrial Development Council, Chairman of the Executive Committee, His Excellency Younis Haji Al Khoori, Undersecretary of Ministry of Finance, His Excellency Omar Al Suwaidi, Undersecretary of MoIAT, His Excellency Major General Suhail Saeed Al Khaili, the Director General of the Federal Authority for Identity, Citizenship, Customs and Ports Security, Major General Dr. Mubarak Saeed Ghafan Al Jabri, Assistant Undersecretary for Support and Defence Industries within the Ministry of Defence, Her Excellency Hanan Ahli, Director of the Federal Competitiveness and Statistics Centre, His Excellency Ahmed Mohamed Al Naqbi, CEO at Emirates Development Bank, His Excellency Osama Amir Fadhel, Assistant Undersecretary of Industrial Accelerators at MoIAT, and Rapporteur of the Industry Development Council.
The meeting was also attended by His Excellency Hamid Mohammed bin Salem, Secretary General of Federation of Chambers, His Excellency Noura Al Marzouqi, Assistant Undersecretary for Policy and Strategy at the Ministry of Human Resources and Emiratisation, His Excellency Dr. Abdul Rahman Al Shayeb Al Naqbi, Director General of Department of Economic Development in Ras Al Khaimah, and His Excellency Mohammed Obaid bin Majid Al Aleeli, Director General of the Department of Industry and Economy in Fujairah.
His Excellency Dr. Sultan Al Jaber said: “In line with the vision and directives of the leadership to focus on supporting the industrial sector and enhance its growth and competitiveness, the new Industry Regulation and Development Law enables more flexible mechanisms and boost the capabilities of the industrial sector.”
"The new law will help to attract local and foreign investments to the industrial sector, enhance priority sectors, enable the Make it in the Emirates initiative – especially in the F&B and pharmaceutical sectors – help to achieve self-sufficiency, and support growth opportunities in future industries such as space, hydrogen and medical and agricultural technology. The law is also a mainstay in the legislative system, supporting the growth of the national industrial sector and increasing its contribution to national GDP in line with the objectives of the National Strategy for Industry and Advanced Technology and the Industrial Development Council.”
His Excellency added: “The decision by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to approve a national policy exempting certain industry inputs from customs fees – a policy proposed by the Ministry of Industry and Advanced Technology – will support the country’s industry and stimulate the competitiveness of national products. This step supports the UAE’s national economic diversification strategy by increasing the contribution of the industrial sector to the national economy, enhancing the ease of doing business in the sector, stimulating production growth, increasing in-country value, developing local supply chains and manufacturing new products.
"The new policy represents an advanced mechanism to enable factories in the country by exempting imported materials entering the industrial sector from customs fees. These exemptions encourage factories to use locally produced materials, in line with the Make it in the Emirates campaign, an initiative that supports the purchase of local products and raw materials. The new policy will have an important economic impact by developing local industries and their exports, reducing unfair competition, supporting the legislative environment, stimulating doing business, supporting national markets, and creating investment opportunities for new products."
Make it in the Emirates
During the meeting, the council discussed a number of projects related to empowering the industrial sector. This included enhancing the Industrial Development Council’s role in launching initiatives in the industrial sector and supporting efforts around the Make it in the Emirates initiative. Other projects discussed included those designed to build capabilities, create an attractive environment for entrepreneurs and SMEs, open new markets for UAE products, and enhance efficiency, flexibility and quality to raise the global competitiveness of local products.
In-Country Value Program
The council praised the emirates of Ras Al Khaimah and Fujairah for joining the National ICV program, which will support the integration of supply chains in the country and enhance the competitiveness of national industries, in particular within priority industries that contribute to achieving self-sufficiency. The council stressed how the National ICV program can create robust opportunities to benefit from procurement contracts from the program’s partners, including more than 45 federal government agencies and 19 major national companies. It indicated that joining the program provides great opportunities to promote growth and industrial expansion in vital and priority sectors, in addition to creating highly skilled job opportunities. The council also discussed how the Industry 4.0 program can promote growth and technical development among companies.
The Industrial Development Council seeks to enhance the performance, growth, and competitiveness of the industrial sector. It aims to achieve this through increasing the flexibility of industrial licensing procedures and making it easier for entrepreneurs, SMEs, advanced technology companies and researchers to establish businesses in the UAE, and then benefit from national programs such as National ICV, Industry 4.0, and the Technology Transformation Program.
The Industrial Development Council is working to support integration efforts between national and local entities to create a suitable and attractive business environment for local and international investors in the industrial sector. The council aims to enhance industrial competitiveness regionally and globally, build capabilities in the industrial sector, and review strategic initiatives that help attract local and foreign industrial investments.
The council supports integration between national and local entities to help create an attractive business environment for local and international investors in the industrial sector. Additionally, it works to enhance industrial competitiveness regionally and globally by providing mechanisms and enablers to build capabilities within the sector. IDC also reviews strategic initiatives that support its efforts in a way that attracts local and foreign industrial investments.
November 14, 2022