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New deal signed to help realize Abu Dhabi’s $2.7 billion industrial strategy

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The Abu Dhabi Department of Economic Development (ADDED) and Tawazun Industrial Park signed an agreement to implement an initiative initiated by the Industrial Development Board (IDB).

The plans are aimed at achieving the goals set by the Abu Dhabi Industrial Strategy (ADIS), which was launched last year as part of the emirate’s drive to boost its industrial sector.

The government unveiled the new Abu Dhabi Industrial Strategy (ADIS) in June 2022, which includes six transformational programs expected to double the size of the industrial sector to AED172 billion and create 13,600 jobs opportunities and expand the emirate’s non-oil exports to AED178.8 billion.

Six transformation projects were identified as “Industry 4.0, Circular Economy, Talent Development, Ecosystem Support, Local Supply Chain and Value Chain Development”.

According to a statement on Wednesday, the new agreement between ADDED and Tawazun focuses on achieving ADIS goals.

Created by the Tawazun Council, the Tawazun Industrial Park is the emirate’s manufacturing zone dedicated to companies in the defense, security and aerospace sectors.

Under the agreement, ADDED and Tawazun will jointly implement a number of initiatives, including the Land Incentive Scheme, which offers long-term industrial land lease contracts through rental rebates as low as AED 5 per square meter, and the Energy Tariff Incentive Program (ETIP 2.0), which Offers preferential rates for natural gas and electricity to the industrial sector.

“The strategic partnership between ADDED and Tawazun Council will support the defense and security industry, enhance competitiveness and increase export opportunities,” said Shareef Hashim Al Hashmi, CEO of Tawazun Council and Chairman of Tawazun Industrial Park.

to grow

Abu Dhabi’s manufacturing sector contributed 16.1% of the emirate’s non-oil GDP and 8% of total GDP by the third quarter of 2022.

Over the past 15 years, the emirate has invested more than AED51 billion in building a “world-class” manufacturing infrastructure and a “business-friendly” regulatory framework.

“Abu Dhabi’s manufacturing sector continued to perform strongly last year, with the achievement of implementing initiatives aimed at increasing access to finance, improving ease of doing business and attracting foreign direct investment to accelerate the transition to a circular, smart and sustainable economy,” said Industry said Arafat Al Yafei, Executive Director of the Development Authority.

(Writing by Cleofe Maceda; Editing by Seban Scaria)

Cleofe.maceda@lseg.com

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