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Saturday, June 3, 2023

MoIAT makes landmark update to national ICV program

Companies in the UAE can now boost their national domestic value score by integrating advanced technology into their operations following a game-changing update to the formula for the national ICV programme.

Sarah Al Amiri, Minister of State for Public Education and Advanced Technology, said: “The first-of-its-kind Industrial Technology Transformation Index is a game-changing initiative that will boost industrial sustainability and the adoption of 4IR. By incorporating this index into the national ICV formula, we are incentivizing companies in the UAE to assess their capabilities, adopt 4IR solutions and integrate sustainability best practices. This will ultimately contribute to increased productivity, enhanced sustainability, enhanced competitiveness and Improve efficiency to align with national efforts to transform industry and achieve net-zero carbon emissions by 2050.

“As the UAE prepares to host COP28 this November, now is an especially opportune time to update the national ICV formula. We are keen to demonstrate to the international community that we are leading sustainable industrial development through technological transformation, innovation and supply chain localization. We It also aims to attract investors to the UAE by introducing various incentives in line with flagship schemes such as the national ICV scheme.”

advanced technology

The Ministry of Industry and Advanced Technology (MoIAT) has announced updates to encourage UAE-based manufacturing companies to adopt advanced technologies and 4IR solutions. The move is aimed at improving the industry’s competitiveness and sustainability in line with the National Industrial and Advanced Technology Strategy’s 300 billion action target.

Entities can improve their ICV score by up to 5% by participating in the recently launched Industrial Technology Transformation Index (ITTI), which allows them to demonstrate their level of advanced technology adoption and sustainability.

This 5% advanced technology bonus is added on top of the entity’s overall ICV score. Manufacturing costs accounted for 50% of the overall score, investment 25%, emirates 15%, and expatriate contributions 10%. Entities can also earn a separate ICV bonus, which can boost their overall score by a further 5%.

ICV score

By achieving a higher ICV score, certified companies can gain a competitive advantage in the procurement process of major corporations and government entities. Reflecting its effectiveness, the plan reinvested AED53 billion (US$14.43 billion) back into the national economy in 2022, a 25 percent increase over 2021.

ITTI was launched under MoIAT’s Technology Transformation Program at the World Government Summit. It is a comprehensive framework for measuring the digital maturity and sustainability of factories and developing roadmaps for industrial transformation. The index facilitates the integration of 4IR applications with sustainability best practices and raises awareness of the benefits of advanced technologies.

It complements the national ICV plan, which was launched in 2021 as one of the “big 50 projects”. The ICV program aims to improve economic performance and support local industry by redirecting a higher proportion of public spending back into the national economy. The program has become one of the main incentives supporting the country’s economic growth and diversification, making it a key factor in the success of the Make it in the Emirates programme.

Supply Chain Localization

The program contributes to supply chain localization and resilience and the development of new local industries and services. It attracts foreign investment that supports economic diversification and helps create quality jobs for Emiratis in the private sector. The national ICV program is an important contributor to the country’s GDP growth.

To help companies understand and utilize the updated ICV formula, MoIAT will host a series of workshops and conferences over the coming weeks.Companies can register for the workshop by contacting the Ministry’s team [email protected]

MoIAT will also raise awareness of the new formula at the Make it in the Emirates forum as well as a number of roadshows. There will also be awareness sessions at Adipec in October and COP28 in November.

Manufacturing companies interested in revising their ICV scores after completing an ITTI assessment can contact their certification body to revise their scores at no additional cost. — trade arab news agency

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