Abu Dhabi-UAE. 8 February 2024: The Ministry of Industry and Advanced Technology (MoIAT) adopted a new logo for the National In-Country Value (ICV) Program*. Since its launch as part of the Projects of the 50, the ICV Program has achieved several milestones that have contributed to the UAE’s industrial development, attracting local and foreign investments, as well as supporting the growth of the national economy. Additionally, the program has encouraged Emirati entrepreneurs to establish themselves in the industrial sector and diverted government procurement to local businesses. All this has contributed to enhancing the competitiveness and sustainability of the UAE industrial sector. Expanding the program to a federal level was a key step in its development. The feat was achieved through collaboration between MoIAT and strategic partners in both the public and private sectors. Today, the program represents a vital national initiative that promotes supply chain localization, drives the development of new local industries, supports GDP diversification, and provides quality employment opportunities for Emiratis in the private sector. Under the program, there has been a significant spending increase on local products and services. Expenditure reached AED 53 billion in 2022, a 26% increase compared to 2021. In 2023, this figure rose to AED 67 billion – a 26% increase. Investments by the UAE’s ICV-certified suppliers exceeded AED 180 billion in 2023. The National ICV Program’s achievements are testament to the ministry's efforts to leverage strategic partnerships to achieve the objectives of the National Strategy for Industry and Advanced Technology. Empowerment and investment attractiveness His Excellency Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology, says: “The ministry’s efforts are in line with leadership's directives and the UAE’s strategic vision to achieve a leap in national developmental through the Projects of the 50. Through projects such as the National ICV Program, we are empowering the industrial as well as investors in line with the National Strategy for Industry and Advanced Technology. “The National ICV Program is one of the cornerstones supporting the UAE’s ambitious national vision. It aims to build economic partnerships, support self-sufficiency in vital and priority sectors, empower national talent, and foster Emirati entrepreneurs under the Make it in the Emirates initiative. This initiative enhances the growth and competitiveness of the local industrial sector, both locally and internationally. It provides a supportive environment for the growth of SMEs, which benefit from localized government procurement." He adds: “The program has progressed quickly since its expansion to a federal level, with local spending in the national economy increasing from AED 26 billion in 2019 to AED 67 billion in 2023. Purchasing opportunities have also grown to include 1,400 products, with AED 10 billion of additional agreements set out in 2023, bringing the total value of offtake opportunities to AED 120 billion over the next 10 years. The program has already achieved a remarkable AED 31 billion of the total offtake agreements. The cumulative value of local spending since the program's inception is more than AED 237 billion, reflecting the scale of the program’s impact on the national economy.” His Excellency also points to the increasing number of Emiratis employed in private sector as a result of the program: “The National ICV Program has led to 15,768 citizens being employed in National ICV-certified companies, marking an 80% increase compared to 2022. This increase aligns with the ministry's policies for upskilling Emirati talent and preparing them for the job market.” Boosting confidence The National ICV Program has played a vital role in increasing investor confidence in the national industrial sector, His Excellency explains. “This confidence has positioned the UAE as a preferred destination for both local and foreign industrial investments. This has further strengthened industrial growth, productivity, and sustainability in the UAE.” He adds: “Encouraging government entities and major national companies to procure locally enhances the performance of companies by giving them a competitive advantage in tenders. This, in turn, boosts local prosperity as well as job opportunities for Emiratis.” Partnerships and agreements Al Suwaidi highlights how, under the program, local agreements have played a pivotal role in attracting new industries to the UAE. He notes: “In 2023, major companies entered strategic agreements for local manufacturing. Examples include manufacturing agreements between ADNOC and companies such as Halliburton and Yokogawa to produce pipes, wellheads, advanced drilling tools and materials, as well as electric pumps, totaling over AED 30 billion. Additionally, there was a purchase agreement worth AED 600 million between PureHealth and Pharmax Pharmaceuticals for the manufacturing of Favipiravir.” His Excellency continues: “Such agreements reflect the role and impact of the Make it in the Emirates initiative in enhancing national integration. PureHealth has collaborated with Abu Dhabi Medical Devices Company to establish a new factory, which supports self-sufficiency and enhances local supply chains and medical security. This includes launching a production line for patented medical equipment and supplies at a cost of AED 110 million. Additionally, PureHealth and Gulf Pharmaceutical Industries (Julphar) are launching the first factory in the Middle East to produce Glargine (a vital alternative to insulin) in Ras Al Khaimah, at a cost of AED 150 million.” Al Suwaidi emphasizes the importance of other integrated agreements that provide incentives and enablers to drive success in the industrial sector. This includes the provision of raw materials for local factories through Borouge, a petrochemical company. Additionally, competitive industrial lands are allocated through Abu Dhabi Ports, offering competitive prices. Competitive financial solutions are also provided to the industrial sector through the strategic partners including Emirates Development Bank. In 2023, First Abu Dhabi Bank and Mashreq Bank also provided financing, along with other supportive enablers, to enhance competitiveness and boost exports. He adds: “Agreements were also signed for purchases totaling AED 400 million between Etihad Airways and national industrial companies such as RAK Ceramics and Biz Ceramics & Textiles, in addition to purchase agreements worth AED 70 million between Emirates Steel and the Emirates Lime Factory. Furthermore, Al Dar Company signed purchase agreements worth AED 70 million with national industrial companies for the manufacturing of electrical transformers and more. His Excellency also highlights that the value of offtake opportunities for 'green' products reached AED 200 million. Rapid expansion The number of entities joining the National ICV Program has increased significantly, from five entities in 2020 to 28 entities in 2023. The program's scope expanded to cover five emirates in 2023 compared to three in 2022. These include Abu Dhabi, Ras Al Khaimah, Ajman, Fujairah, and Umm Al Quwain. Additionally, eight new local and federal entities have joined, including the Ministry of Energy and Infrastructure, Ministry of Health and Community Protection, Emirates Health Services Foundation, Emirates Schools Establishment, Government of Ajman, Government of Umm Al Quwain, Health Department in Abu Dhabi, and Rafed. The number of companies obtaining ICV certification rose from 4,500 in 2022 to 5,500 in 2023, representing a 22% increase, with more than 6,500 certificates issued during 2023. Economic diversification To support a diverse range of economic sectors in the country, the National ICV Program has introduced numerous opportunities across industry, services, retail, hospitality, and real estate since its launch. Additionally, MoIAT launched a new digital platform for the program, enabling companies to obtain certificates digitally, saving them around 40% on time and costs. Expanding the program The ministry continues to expand the program to new sectors, including, but not limited to, clean energy, healthcare, defense industries, aviation, telecommunications, real estate, education, infrastructure, cybersecurity, iron, aluminum, among others. These efforts have played a significant role in accelerating the implementation of the program at the national level. New sectors were added to the program following its success across others including heavy industries, space technology, hydrogen, medical technology, advanced manufacturing, food and beverages, agricultural technology, pharmaceuticals, electronic equipment, machinery and equipment manufacturing, petrochemicals, rubber, as well as plastics. The past two years saw an extensive expansion of the program’s scope. The Industrialist Program Under the ICV, MoIAT launched the Industrialist Program in collaboration with the Ministry of Human Resources and Emiratisation (MoHRE) and the Emirati Talent Competitiveness Council (Nafis). The initiative aims to empower Emirati talent and enhance localization in the sector through the implementation of specific policies and programs. It focuses on equipping and enabling the Emirati workforce to fill positions in the industrial and advanced technology sectors, aligning with the requirements of factories. This includes a training program to upskill national talent, as well as providing access to specialized positions in the industrial sector. Under the program, the ministry, in collaboration with MoHRE, Nafis, Abu Dhabi Department of Economic Development, and ADNOC Group, organized the Industrialist Career Fair in November 2023. The event contributed to providing more than 500 jobs and training opportunities in over 73 factories across the country, and attracted more than 3,000 Emiratis seeking employment, with 4,000 immediate-hire interviews conducted. Over 416 employment contracts were signed, and high-quality educational and training programs were offered. Additionally, four training programs were launched to upskill Emirati talent, covering industries such as oil and gas, security and safety, iron, paper, and F&B. Technology incentives The ministry announced an update to National ICV evaluation criteria in 2023. This update includes an additional bonus of up to 5% for companies assessed under the Industrial Technology Transformation Index (ITTI). ITTI is a flagship initiative aimed at encouraging companies to adopt advanced technologies and sustainable practices. By scoring highly in the ITTI, companies can gain a better ICV score, incentivizing more technology adoption and more sustainable practices. Lower fees for SMEs The ministry announced in June 2023, in collaboration with the Ministry of Economy, the introduction of a new pricing scheme for National ICV certificates SMEs as a new incentive for companies registered in the National Programme for Small and Medium Enterprises. Through this initiative, the ministry aims to support smaller companies to compete in national tenders. Upskilling local talent To help Emiratis thrive in the private sector, the ministry collaborated with Nafis to launch a training program for citizens employed in National ICV-certified companies. The initiative is aimed at enhancing their technical, digital, and specialized skills in auditing data related to the program's certificate, under Nafis’ ‘Khebra’ program. The program provided Emiratis with three-month training opportunities at ICV-certified companies, targeting individuals with a bachelor's degree. It focused on procedures for awarding the certificate, particularly in the field of financial auditing. Green ICV During the second edition of the Make it in the Emirates Forum, the ministry announced the adoption of Green ICV as a new standard within the National ICV Program. The move is aimed at enhancing sustainability practices in government procurement and incentivizing companies to reduce emissions. The Green ICV standard provides companies with the opportunity to earn additional points in the National ICV formula when they commit to implementing sustainability standards, green policies, and practices. Companies can gain an additional 3% on their ICV score based on their practices in sustainability, water management, emissions management, recycling and efficiency. In 2024, the National ICV Program continues its journey, integrating with other key initiatives and programs launched by the ministry such as Make it in the Emirates and the Technology Transformation Program. As the program continues boosting the growth and competitiveness of national companies, as well as supply chain resilience, ICV will continue driving the national economy and jobs over the next decade.