The 300 billion operation targets are “ambitious but achievable”, say industry executives
The objectives of the UAE 300 billion operation are “ambitious” but “achievable”, are essential to attract foreign direct investment and support the ecosystem of small and medium enterprises, which is at the heart of the growth strategy of the United Arab Emirates. industrial sector of the country, high administration and industrial sector. the executives said.
“The goal of 300 billion dirhams … it is an ambitious but achievable goal,” said on Tuesday Abdulla Al Shamsi, deputy under-secretary at the Ministry of Industry and Advanced Technologies, at the World Summit of manufacturing and industrialization (GMIS) in Dubai.
“SMEs are at the heart of Operation 300 billion and the next five to ten years are very positive for SMEs in the UAE. We have a demand that is growing exponentially in many sectors… I think it is really time for SMEs to break free and growth to break free in the United Arab Emirates, ”he said.
The UAE is diversifying its economy and expanding its industrial base to reduce its dependence on imported industrial inputs and global supply chains after the pandemic that uprooted global trade last year .
In March, the second largest economy in the Arab world announced its intention to increase the contribution of the manufacturing sector to the country’s economic output to 300 billion dirhams (87.4 billion dirhams) from 133 billion dirhams over the next year. decade, to stimulate local production and create leading light and heavy industries.
Operation 300 billion industrial strategy supports spending on local products and local suppliers, as well as promoting investment in research and development and incentivizing adoption of advanced technologies in the United Arab Emirates .
The strategy will focus on expanding sectors, including petrochemicals, plastics and metals, and further develop the industrial bases of food, water and health.
“We can do a lot in the existing sectors to take it to the next level and increase the value,” Al Shamsi said. “We have the capital, the know-how and the comparative advantages to help us develop new sectors.
Coordination of efforts between government entities and national industrial champions, however, will be a “critical success factor in paving the way for industrial growth,” he added.
The panel also included Saeed Al Remeithi, managing director of Emirates Steel; Ahmed Al Naqbi, Managing Director of Emirates Development Bank; Abdulnasser bin Kalban, Managing Director of Emirates Global Aluminum; Khaleefa Al Mheiri, Acting Managing Director of Ta’ziz Development in Abu Dhabi, and Saud Abu Al Shawareb, Managing Director of Dubai Industrial City.
The UAE’s industrial strategy also aims to establish 13,500 industrial companies, increasing R&D investment to Dh57 billion by 2031 from Dh21 billion currently.
“We are looking to deploy MAD 30 billion in the market by 2025 to support this ecosystem, support this acceleration of growth,” said Mr. Al Naqbi. “We want to support the creation of 25,000 jobs and 13,500 businesses here in the country.
The objectives set by the strategy are achievable, he added.
The strategy will not only support SMEs – which account for around 95 percent of businesses in the UAE and 80 percent of private sector jobs – it will also boost foreign direct investment, Al Remeithi said.
The development of SMEs is at the top of the UAE’s economic agenda for the next 50 years. The government has launched incentives to stimulate their growth and foster entrepreneurship and start-ups.
One of the largest non-oil industrial companies in the UAE, EGA already supplies 45% of its total needs to SMEs in the country, its chief executive said.
SMBs power your system. For us, the SME is [a] crucial [sector]said Mr bin Kalban.
The company, which spent $ 1.6 billion annually on domestic purchases, plans to increase the percentage of local sourcing.
“Our strategy is to have a new ecosystem … in our backyard,” he said, adding that proximity to the supply chain is possible with the support of institutions like EDB that can help. to establish more local and international SMEs and EGA can do it. long-term drawdown agreements with them.
“It will take time,” but it is achievable, he added.
Ta’ziz, the chemicals manufacturing hub within the Ruwais industrial hub, also fits perfectly into the UAE’s industrial growth strategy, as it will create direct jobs.
“The chemicals sector also plays a vital role as an input for different industries and manufacturing sectors. there will be the opportunity [for growth] at the bottom of the value chain, ”said Mr. Al Mheiri.
“Currently we are in a pre-feed phase and await a final investment decision next year as we plan operations [to begin] in 2025.
Dubai Industrial City, an industrial hub located near the Jebel Ali port of the emirate, is also working with different entities to “complete the government program” and accommodate the industries of the priority sectors defined in the 300 billion operation, said Mr. Al Shawareb.
The DIC plans to announce rail connectivity next year, which will increase its appeal to industries, he added.
Update: November 24, 2021, 3:30 a.m.