National ICV Program Continues To Bolster UAE Economy, Redirects More Than AED48 Billion In H1 2024

The National ICV Program of the Ministry of Industry and Advanced Technology (MoIAT), one of the UAE’s Projects of the 50, has witnessed milestone with the expansion of its scope during H1 2024.

This has resulted in the redirection of more than AED48 billion to the national economy, highlighting the significance of the enablers and incentives provided by the ministry to support the growth, competitiveness, and prosperity of national industrial and service companies. The Program’s scope has been expanded to include 31 federal and local government entities and several major national companies in the country.

Enhancing Growth and Competitiveness

His Excellency Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology (MoIAT) 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 Program represents a critical pillar in empowering the country’s industrial sector. It plays a vital role in enhancing the business ecosystem, 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.

His Excellency Al Jaber added that enhancing national industries support the country’s efforts in localizing 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.

His Excellency Al Jaber explained that the volume of investments from companies that obtained Program certificates reached nearly AED205 billion by mid-2024, an increase of 20% compared to the same period last year. This reflects the Program’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.

His Excellency noted that the amount successfully redirected to the national economy by the Program in H1 this year (AED48 billion) exceeds the amount the Program achieved throughout 2021 (AED41.4 billion). His Excellency pointed out that national spending by companies on local purchases and services is witnessing annual growth, amounting to AED53 billion in 2022, an increase of 25% compared to 2021. This amounted to AED67 billion in 2023, indicating a growth rate of 26%. These are encouraging numbers for companies and suppliers and reflect the significant opportunities the industrial sector offers to investors.

His Excellency pointed to the social impact of the National ICV Program, which is no less important than the economic impact. The number of Emiratis working in companies that obtained the National ICV Program certificate reached about 19,000 in H1 2024, an increase of 40% 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.

Economic Diversification

His Excellency 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 Program confirms the effectiveness of efforts and initiatives aimed at developing specialized 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.”

His Excellency 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 Program 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 localization 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.”

Federal Procurement System

His Excellency Younis Haji Al Khoori, Undersecretary 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.”

His Excellency highlighted that strategic partnerships between the public and private sectors are key to ensure 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.”

Enabling Factors

His Excellency Omar Al Suwaidi, Undersecretary of MoIAT and Chairman of the National ICV Program Committee, affirmed that in line with the objectives of Operation 300bn and the Make it in the Emirates initiative, more supportive policies and programs 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 Program’s scope to cover various levels and sectors in the country.

His Excellency explained that H1 2024 witnessed a 66% increase in national spending among entities implementing the National ICV Program compared to the first half of last year. He pointed out that the ministry is preparing to honor 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 through launching a National ICV Day. This event will celebrate companies most engaged with the Program’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% 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% compared to 2023, reflecting the growth achieved due to the Program’s expanded scope within the procurement policies of the strategic partners who are members of the National ICV Program.

Yaser Al Mazrouei, Executive Director, People, Commercial & Corporate Support Directorate, ADNOC, said: “ADNOC has proudly been supporting the National ICV Program 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 ($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 program, 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.”