New Licences Surge 16.6% in First Year of Abu Dhabi Industrial Strategy Launch

Launched by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council in June 2022, the Abu Dhabi Industrial Strategy (ADIS) has accelerated the transformation of the emirate’s manufacturing sector, strengthening its position as the region’s most competitive industrial hub within its first year.

Increased activity has been registered across all three stages of Abu Dhabi’s manufacturer licensing journey: Rowad (initial licence to establish an industrial company), construction (to begin constructing an industrial facility) and production (to commence operations).

The 12-month period from July 2022 to June 2023 recorded a 16.6 per cent increase in the number of new industrial Rowad licences granted in Abu Dhabi, from 204 to 238.

116 new Rowad industrial licences were issued during H1 2023 alone, an increase of 63.3 per cent from the number issued in H1 2022.

US44.24 billion in capital investments made by manufacturing facilities moved to the in-production phase over the year, a growth of 85.7% from a year earlier.

As a result, total capital investments by manufacturers operating in the emirate grew US$3.4 billion to US$104 billion in the same period, up from US$101 billion a year ago.

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The number of operational manufacturers in the emirate now stands at 966, up from 922 manufacturers at the end of H1 2022.

His Excellency Ahmed Jasim Al Zaabi, Chairman of ADDED, said: “Guided by our leadership’s foresight and unwavering commitment, ADDED is doubling down on its efforts to enhance Abu Dhabi’s competitiveness through a new multi-polar economic strategy, where the industrial strategy sits at its core.

"As an ambitious blueprint to guide the emirate’s manufacturing sector, the Abu Dhabi Industrial Strategy has ushered in a new era in the economic landscape that leverages innovation and advanced technologies to harmonise human development, sustainability, and growth.

“The robust performance of the manufacturing sector is testament to Abu Dhabi’s ongoing economic resilience.

"Our manufacturing sector, which contributed 16.4% to Abu Dhabi’s non-oil GDP in 2022 and represents 49.9% of the total industrial sector in the UAE, is moving from strength to strength, powered by successful implementation of the industrial strategy’s transformational programmes."

The strategy involves an investment of AED 10 billion across six transformational programmes: Talent Development, Industry 4.0, Circular Economy, Ecosystem Enablement, Homegrown Supply Chain, and Value Chain Development.

Over the past year, the Industrial Development Bureau (IDB), ADDED’s industrial sector development arm, has launched several initiatives to deliver on the goals of the strategy.

During the year, IDB also unveiled a smart manufacturing competence centre to support sector-wide Industry 4.0 transition, an incentive programme to support existing industrial SMEs adopt smart manufacturing methods and processes.

Additionally, ADDED signed agreements with a number of leading global companies to enhance industry innovation and digital transformation, and nurture emerging talent by training UAE Nationals through in-country, global and virtual programmes on technology, business and behavioural skills.

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