According to the new Industrial Activity Index Report for 2020, the industrial sector of Abu Dhabi has made a contribution of 10.7 percent to the non-oil GDP last year and 6.3 percent to the overall GDP.
The report which is published by the Industrial Development Bureau (IDB) of Abu Dhabi Department of Economic Development shows that last year 51 industrial facilities started production with a total investment of $1.06 billion.
Overall 35 plants went into production in Abu Dhabi, 11 in Al Ain and 5 in Al Dhafra, which shows the increasing role of the industrial sector in building the emirate’s sustainable economic development. Half of the new facilities were based on the area of metal, food and chemical, and equipment and machinery.
Mohamed Ali Al Shorafa, Chairman, ADDED, underlined the Abu Dhabi Government’s efforts in enhancing the role of the industrial sector as a key driver of sustainable economic development by boosting foreign direct investment and by offering incentive packages.
The new investments coming into Abu Dhabi despite the pandemic situation across the globe, reflect investors’ confidence over the emirate. Several incentives, initiatives and advantages make Abu Dhabi a preferred center for attracting investments across the region.
As per the report, nearly 283 industrial licenses were registered in the emirate, including 171 ‘industry pioneer’, 61 ‘under construction’ and 51 ‘production’ licenses. The total number of industrial licenses given in the emirate has now reached to 1,694.
The report indicated that the total investment value for Abu Dhabi industrial facilities ‘under construction’ and ‘into production’, has amounted to over $105 billion during 2020, including $98 billion for the total of 839 industrial facilities that started production and $49 billion for about 546 industrial facilities under construction.
Out of all the industries, the chemical sector constitutes the highest investment value of $57 billion, followed by energy and sustainability with $55 billion, construction and glass industries $11 billion, equipment and machinery $2.7 billion, food $2 billion and other industries around $1.6 billion.
Last year, the IDB of Abu Dhabi had signed several agreements with strategic entities and partners to support the emirate’s industrial sector, including a deal with Etihad Credit Insurance Company to boost exports. It also signed an agreement with 10 banks to help domestic factories and businesses access finance.