National ICV Programme boosts UAE economy, redirects over Dhs48b

The National ICV Program of the Ministry of Industry and Advanced Technology (MoIAT), one of the UAE’s Projects of the 50, has witnessed milestone with the expansion of its scope during H1 2024.

This has resulted in the redirection of more than Dhs48 billion to the national economy, highlighting the significance of the enablers and incentives provided by the ministry to support the growth, competitiveness, and prosperity of national industrial and service companies. The Program’s scope has been expanded to include 31 federal and local government entities and several major national companies in the country.

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology (MoIAT) said: “In line with the leadership’s directives to diversify the national economy as a strategic necessity towards building a dynamic and sustainable economy and enhancing the UAE’s global competitiveness and international rankings. 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.

Al Jaber added that enhancing national industries support the country’s efforts in localizing supply chains while achieving self-sufficiency in key industries. Through leveraging the integrated model by collaborating with strategic partners in the government and private sectors to provide a stimulating industrial business ecosystem that drives growth and competitiveness.

Al Jaber explained that the volume of investments from companies that obtained Program certificates reached nearly Dhs205 billion by mid-2024, an increase of 20% compared to the same period last year. This reflects the Program’s economic impact on the investment attractiveness of the UAE and on the stimulating climate the country offers to attract more foreign and local industrial investments in the industrial sector.

His Excellency noted that the amount successfully redirected to the national economy by the Program in H1 this year (Dhs48 billion) exceeds the amount the Program achieved throughout 2021 (Dhs41.4 billion). His Excellency pointed out that national spending by companies on local purchases and services is witnessing annual growth, amounting to Dhs53 billion in 2022, an increase of 25% compared to 2021. This amounted to Dhs67 billion in 2023, indicating a growth rate of 26%. These are encouraging numbers for companies and suppliers and reflect the significant opportunities the industrial sector offers to investors.

His Excellency pointed to the social impact of the National ICV Program, which is no less important than the economic impact. The number of Emiratis working in companies that obtained the National ICV Program certificate reached about 19,000 in H1 2024, an increase of 40% over H1 2023, compared to 6,180 jobs in 2020 when the ministry was established. 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.

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. The significant growth of the National ICV Program confirms the effectiveness of efforts and initiatives aimed at developing specialized talent, enhancing local supply chains and value, advancing digital and technological transformation, and boosting the global competitiveness of the industrial sector and the national economy.”

Al Zaabi added: “Our strategic partnership with the Ministry of Industry and Advanced Technology contributes to achieving the UAE’s strategic objectives and sustainable development. In this context, the Abu Dhabi Local ICV Program plays a fundamental role in supporting Abu Dhabi’s industrial strategy, enhancing the knowledge and innovation economy, developing skills and competencies, and providing job opportunities through awarding tenders to companies holding the local value certificate.

Thereby, they reinject billions of Dirhams into the local economy to support locally manufactured products and strengthen efforts for localization and economic diversification. We will continue to stimulate leading industrial companies to support sector growth and launch initiatives to attract direct local and foreign investments to establish their businesses in Abu Dhabi and take advantage of the vast opportunities to achieve prosperity and global expansion.”