The UAE’s Ministry of Industry and Advanced Technology (MoIAT), Abu Dhabi Department of Economic Development (ADDED) and the Abu Dhabi National Oil Company (ADNOC) have signed a memorandum of understanding (MoU) to boost federal and local cooperation in support of the National In-Country Value (ICV) program.
The ICV program, which is overseen by MoIAT, brings together expertise from government entities and leading national companies to localize supply chains and develop UAE industries and services that can help to attract foreign direct investment (FDI) and boost jobs in the private sector.
The MoU targets to spur entrepreneurship in priority sectors and future industries through advanced technology and 4IR solutions, which will improve the operational efficiency and the competitiveness of UAE-made products in regional and global markets.
Mr. Omar Suwaina Al Suwaidi, Undersecretary at MoIAT, said that federal and local government collaboration on the implementation of the ICV program is key to supporting and empowering the UAE industry.
“ADNOC is proud of its role in the development of the local ICV program in 2018, which was launched with the aim of boosting our contribution to economic diversification, localizing strategic supply chains, and increasing the private sector’s contribution to our socio-economic development. It has yielded significant results over the past three years, most notably being expanded to the federal level as part of the leadership’s Projects of the 50. Along with our partners in the program, we successfully redirected billions of to the local economy and created thousands of private-sector job opportunities for Emiratis.”
The ICV program provides several competitive advantages, like boosting demand for local products and services, as well as financial support and opportunities for partnerships with foreign companies seeking to benefit from a joint supply chain.
Under the MoU, MoIAT and ADDED will work on proposing and developing policies, strategies and legislation to promote Emirati products and local industrial output to boost the private sector’s contribution to gross domestic product and boost spending on research and development.
The ICV program is one of the key initiatives of the National Strategy for Industry and Advanced Technology, which seeks to redirect over 42 percent of public and private sector procurement and service expenses towards local suppliers by 2025.
The UAE’s efforts to encourage locally made products are part of a wider ambition to achieve self-sufficiency in the production of basic goods and increase the private sector’s contribution to manufacturing.
Commenting on the MoU, Mr. Rashed Al Blooshi, Undersecretary at ADDED, said the new agreement encourages companies and factories that participate in government tenders to increase their economic contribution to Abu Dhabi by enhancing suppliers’ contribution to national GDP, increasing Emiratisation and accelerating the development of a knowledge- and technology-based economy.