Sharjah 24 – WAM: The National ICV Programme of the Ministry of Industry and Advanced Technology (MoIAT), a key initiative under the UAE's Projects of the 50, achieved a major milestone in H1 2024. The expansion of its scope led to the redirection of over AED48 billion into the national economy. This underscores the importance of the ministry's enablers and incentives in boosting the growth, competitiveness, and prosperity of local industrial and service companies.
The Programme's scope has been expanded to include 31 federal and local government entities, along with several major national companies in the country. This expansion highlights the significant role the Programme plays in supporting the national economy and promoting sustainable development.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, said, “In line with the leadership's directives to diversify the national economy as a strategic necessity towards building a dynamic and sustainable economy and enhancing the UAE’s global competitiveness and international rankings. The National ICV Programme represents a critical pillar in empowering the country’s industrial sector. It plays a vital role in enhancing the business ecosystem and industrial competitiveness, and creating job opportunities for national talent. In addition, it supports the objectives of the ‘We the UAE 2031’ vision and the UAE Centennial 2071.
Dr. Al Jaber added that enhancing national industries supports the country's efforts in localising supply chains while achieving self-sufficiency in key industries. Through leveraging the integrated model by collaborating with strategic partners in the government and private sectors to provide a stimulating industrial business ecosystem that drives growth and competitiveness.
He explained that the volume of investments from companies that obtained Programme certificates reached nearly AED205 billion by mid-2024, an increase of 20 percent compared to the same period last year. This reflects the Programme’s economic impact on the investment attractiveness of the UAE and on the stimulating climate the country offers to attract more foreign and local industrial investments in the industrial sector.
Dr. Al Jaber noted that the amount successfully redirected to the national economy by the Programme in H1 2024 (AED48 billion) exceeds the amount the Programme achieved throughout 2021 (AED41.4 billion). He added that national spending by companies on local purchases and services is witnessing annual growth, amounting to AED53 billion in 2022, an increase of 25 percent compared to 2021. This amounted to AED67 billion in 2023, indicating a growth rate of 26 percent. These are encouraging numbers for companies and suppliers and reflect the significant opportunities the industrial sector offers to investors.
The UAE Minister of Industry and Advanced Technology underscored the social impact of the National ICV Programme, which is no less important than the economic impact. The number of Emiratis working in companies that obtained the National ICV Programme certificate reached about 19,000 in H1 2024, an increase of 40 percent over H1 2023, compared to 6,180 jobs in 2020 when the ministry was established. This marks an increase of 13,000 new jobs in three and a half years, in addition to the promising investment opportunities that result from keeping these billions within the national market, especially for small and medium-sized companies and Emirati entrepreneurs.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, said, "The industrial sector plays a key role in the Economic Diversification 2.0 strategy to accelerate growth and expedite the transition to a smart, diversified, and sustainable economy. The significant growth of the National ICV Programme confirms the effectiveness of efforts and initiatives aimed at developing specialised talent, enhancing local supply chains and value, advancing digital and technological transformation, and boosting the global competitiveness of the industrial sector and the national economy."
Al Zaabi added, "Our strategic partnership with the Ministry of Industry and Advanced Technology contributes to achieving the UAE’s strategic objectives and sustainable development. In this context, the Abu Dhabi Local ICV Programme plays a fundamental role in supporting Abu Dhabi’s industrial strategy, enhancing the knowledge and innovation economy, developing skills and competencies, and providing job opportunities through awarding tenders to companies holding the local value certificate. Thereby, they reinject billions of dirhams into the local economy to support locally manufactured products and strengthen efforts for localisation and economic diversification. We will continue to stimulate leading industrial companies to support sector growth and launch initiatives to attract direct local and foreign investments to establish their businesses in Abu Dhabi and take advantage of the vast opportunities to achieve prosperity and global expansion."
Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance, spoke highly of the significant achievements made by the National Content Programme, which not only bolstered the industrial sector but also boosted the competitiveness of the national economy.
He emphasised that the Ministry of Finance plays a vital role in fulfilling the programme's requirements within the federal procurement system, in line with the National Strategy for Industry and Advanced Technology, as well as the 'Make it in the Emirates’ initiative.
He further stated, "Utilising the Government Procurement Platform, the Ministry of Finance spares no effort to promote the involvement of national industrial and service projects and companies in procurement processes across various government sectors, aiming to foster a fair competitive landscape, while also facilitating the growth and expansion of these entities.
“Such initiatives pave the way for achieving self-sufficiency in essential industries and products, localising supply chains, bolstering economic resilience, and drawing more investments to the UAE’s industrial sector."
Al Khoori highlighted that strategic partnerships between the public and private sectors are key to ensuring the success of the National Content Programme.
He also added that the ministry, in cooperation with its partners, is committed to developing further policies and programmes that support expenditure on national projects, drive innovation, and enhance the added value of local products, in line with the UAE's strategic goals for economic diversification, as well as the 'We the UAE 2031' and the UAE Centennial 2071.
Omar Al Suwaidi, Under-Secretary of MoIAT and Chairman of the National ICV Programme Committee, affirmed that in line with the objectives of Operation 300bn and the Make it in the Emirates initiative, more supportive policies and programmes are being developed to increase spending on national projects. This reflects positively on increasing the added industrial value and supporting the export competitiveness of products manufactured in the UAE, representing a significant leap in performance and expansion of the Programme's scope to cover various levels and sectors in the country.
Al Suwaidi explained that H1 2024 witnessed a 66 percent increase in national spending among entities implementing the National ICV Programme compared to the first half of last year. He pointed out that the ministry is preparing to honour its strategic partners and major companies that are the biggest contributors to enhancing national content across the entire local supply chain at the end of the year by launching a National ICV Day. This event will celebrate companies most engaged with the Programme’s objectives, thereby boosting sustainable development efforts in the country.
He added, “The number of companies that obtained National ICV certificates reached 6,500 during H1 2024, an increase of 30 percent over the same period last year. Furthermore, the number of national content certificates issued during H1 2024 exceeded 3,500 certificates, an increase of 17 percent compared to 2023, reflecting the growth achieved due to the Programme's expanded scope within the procurement policies of the strategic partners who are members of the National ICV Programme."
Yaser Al Mazrouei, Executive Director, People, Commercial and Corporate Support Directorate, ADNOC, said, “ADNOC has proudly been supporting the National ICV Programme since 2018, where we have continued to play a pivotal role in enabling economic, social and industrial growth in the UAE. ADNOC aims to further drive AED178 billion (US$49 billion) back into the UAE economy by 2028, in line with the goal to allocate AED90 billion ($25 billion) for locally manufactured products by 2030. Through our ICV programme, we are reinvesting in the UAE’s economy and strengthening the resilience of the nation’s industrial base by driving local and foreign industrial investment, supporting local SMEs, and creating highly skilled private sector job opportunities for UAE Nationals.”
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