UAE-based small and medium enterprises (SMEs) will soon be able to invest in priority industries such as defence, with access to new financing solutions and enablers, according to a Memorandum of Understanding (MoU) signed at Idex and Navdex.
The MoU between the Ministry of Industry and Advanced Technology (MoIAT), Tawazun Industrial Park (TIP) and the Emirates Development Bank (EDB) was signed during the defense exhibition.
Under the Make it in the Emirates programme, the MoU aims to attract industrial investors into strategic sectors such as defence, by offering a package of incentives and benefits. It will ultimately support the sustainable development of the industrial sector, help provide an attractive business environment for local and international investors, and encourage the use of advanced technologies in industrial solutions.
The MoU was signed by Omar Al Suwaidi, Deputy Minister of MoIAT, Eng Faiz Saleh Al Nahdi, CEO of TIP, and Ahmed Mohammed Al Naqbi, CEO of EDB, in the presence of Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, Minister of State for Public Education and Advanced Technology Sarah Al Amiri, Major General Dr. Mubarak Saeed Ghafan Al Jabri, Assistant Undersecretary of the Ministry of Defense for Support and Defense Industries and Vice-Chairman of the Idex and Navdex Committee, and Hosani, Secretary-General of the Tariq Al Tawazun Committee, together with MoIAT, the Ministry of Defence, the Tawazun Committee and the UAE Development Bank senior officials.
Under the MOU, MoIAT and TIP will provide incentives to attract industrial investment into the park, in line with MoIAT’s efforts to create an attractive business environment for local and international investors, and to stimulate industrial innovation and adoption of advanced technologies.
The Economic Development Board will provide flexible and competitive financing solutions such as green financing, capital expenditure financing, and start-up and SME financing.
Empowering the Industrial Sector
Al Suwaidi said: “The MoU will help empower the industrial sector in line with the mission of MoIAT and the goals of the 300 billion action. The strategy aims to improve the business environment to attract local and international investors, especially in the UAE Manufacturing, National ICV Program An important industrial sector under the umbrella of the National and Technology Transformation Programme.
“EDB is one of our most important strategic partners. Over the past year, the bank has provided industrial companies with incentives, enablers and financing solutions worth AED 3.14 billion (US$ 850 million). Likewise , TIP is a national integrated hub for the UAE’s defense, security and technology industries and is critical to supporting local defense contractors. Our MoU will provide a package of incentives, including competitive land and facility prices, as well as incentives to encourage TIP exports Incentives.”
He added: “The Ministry continues to promote partnerships to promote the growth and competitiveness of the nation’s industrial sector and support local supply chains. MoIAT is working with federal and local government entities as well as the private sector to implement a number of support projects and initiatives, such as through Technological transformation supports manufacturers. In addition to encouraging companies to benefit from membership in the national ICV scheme, we have introduced initiatives such as exemption from tariffs on industrial production inputs, which will save the industry nearly AED4 billion by 2022.”
Eng Al Nahdi said: “The MoU provides a framework for cooperation to promote and stimulate industry in the country. It also provides a platform to support the target of the 300 billion Action and the Make it in the Emirates initiative, which helps National industrial sectors, especially important and priority industries.”
He added: “TIP will encourage and empower investors through tailor-made incentives and facilities as well as long-term lease contracts, free lease terms and supportive business incubators, while EDB will provide financing solutions to attract foreign direct investment to the UAE. “
The defense sector is a priority industry for MoIAT, which aims to increase the industrial sector’s contribution to GDP to AED300 billion by 2031, increase productivity, and create more jobs in the UAE. The UAE will increase domestic defense spending from 10% to 30% of total defense spending by 2030, an opportunity to replace imports and promote localization of supply chains.
more foreign direct investment
Al Naqbi said: “Through this partnership, we look forward to establishing a strategic framework for our tenants that supports the objectives of the ‘Make in the UAE’ initiative and helps attract more foreign direct investment into the country.
He added: “As one of the priority sectors for the 300 billion action, we are pleased to announce that the defense sector has benefited from AED 375 million provided by the EDB so far. Our mission is to promote a healthy and sustainable economy growth while contributing to driving the country’s industrial progress. We look forward to exploring further collaborations with the Ministry and TIP and working together to provide a supportive and sustainable environment for vital industries while strengthening local supply chains.” – – trade arab news agency