The National ICV Program of the Ministry of Industry and Advanced Technology (MoIAT), one of the UAE’s Projects of the 50, has witnessed remarkable milestones with the expansion of its scope during H1 2024.
The program has redirected over AED48 billion ($13.07 billion) to the national economy during the first half, highlighting the significance of the ministry’s enablers and incentives to support economic growth, competitiveness, and prosperity of national industrial and service companies. During H1 of 2024, the MoIAT also expanded the National ICV Program’s scope to include 31 federal and local government entities and several major national companies in the UAE.
“The National ICV Program represents a critical pillar in empowering the country’s industrial sector. It plays a vital role in enhancing the business ecosystem, industrial competitiveness, and creating job opportunities for national talent. In addition, it supports the objectives of the We the UAE 2031 vision and the UAE Centennial 2071,” stated Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology (MoIAT).
Localizing supply chains
Al Jaber added that enhancing national industries supports the country’s efforts in localizing supply chains while achieving self-sufficiency in key industries.
He explained that the volume of investments from companies that obtained program certificates reached nearly AED205 billion by mid-2024, an increase of 20 percent compared to the same period last year. This reflects the National ICV Program’s economic impact on the investment attractiveness of the UAE and the stimulating climate the country offers to attract more foreign and local industrial investments in the industrial sector.
In addition, the amount successfully redirected to the national economy exceeds the amount the National ICV Program achieved throughout 2021 (AED41.4 billion). Moreover, national spending by companies on local purchases and services is witnessing annual growth, amounting to AED53 billion in 2022, an increase of 25 percent compared to 2021. This amounted to AED67 billion in 2023, indicating a growth rate of 26 percent. These are encouraging numbers for companies and suppliers and reflect the significant opportunities the industrial sector offers to investors.
Supporting Emiratization targets
Al Jaber also pointed to the National ICV Program’s social impact, stating that the number of Emiratis working in companies that obtained the program certificate reached about 19,000 in H1 2024, an annual increase of 40 percent.
This marks an increase of 13,000 new jobs in three and a half years, in addition to the promising investment opportunities that result from keeping these billions within the national market, especially for small and medium-sized companies and Emirati entrepreneurs.
For his part, Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, said: “The industrial sector plays a key role in the Economic Diversification 2.0 strategy to accelerate growth and expedite the transition to a smart, diversified, and sustainable economy.”
Greater spending on national projects
Omar Al Suwaidi, Undersecretary of MoIAT and Chairman of the National ICV Program Committee, affirmed that in line with the objectives of Operation 300bn and the Make it in the Emirates initiative, more supportive policies and programs are underway to increase spending on national projects.
In H1 of 2024, national spending among entities implementing the National ICV Program rose 66 percent annually.
The number of companies that obtained National ICV certificates rose 30 percent annually to 6,500 during H1 of 2024. Furthermore, the number of national content certificates issued during H1 2024 exceeded 3,500, an increase of 17 percent compared to 2023. This reflects the growth the program achieved due to expanding its scope within the procurement policies of the strategic partners who are members of the National ICV Program.
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