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Abu Dhabi converts status of 29 industrial licences to ‘production’

Abu Dhabi converts status of 29 industrial licences to ‘production’

Construction and glass industries account for the largest share of industrial licences in Abu Dhabi with 20.1 per cent

The status of up to 29 industrial licences in Abu Dhabi have been converted to ‘production’, with a total investment value of Dhs2.6bn.

These include four facilities specialised in construction and glass industries; three for food industries; four for chemical industries; five for metal industries; four specialised in equipment and machine production; four for general industries; a facility each for textile, clothing and leather industries; rubber, plastic and fiberglass sectors; wood; sustainable energy production; and electronics and electrical industries.

New industrial licences under ‘Industry Pioneers’ also grew by 18 per cent while the licences with ‘Under Construction’ status rose by 33 per cent, compared to the first half of 2019, Abu Dhabi’s industrial performance report for H1 2020, by the Industrial Development Bureau (IDB) of the Abu Dhabi Department of Economic Development (ADDED) revealed.

The total licences with ‘Production’ status issued in the emirate were distributed in various cities with 642 licences in Abu Dhabi city; 162 in Al Ain city; and 25 licences in Al Dhafra region.

As for licences with ‘Under Construction’ status, there are 379 in Abu Dhabi city; 139 in Al Ain city; and 21 in Al Dhafra region, official news agency WAM reported.

The industrial licences with ‘Under Construction’ and ‘Production’ statuses were mainly located in Abu Dhabi city which accounted for 74.6 per cent of the total number of industrial licences, compared to 22 per cent and 3.4 percent in Al Ain city and Al Dhafra region, respectively.

Construction and glass industries account for the largest share of industrial licences in Abu Dhabi with 20.1 per cent; followed by 18.1 per cent for metal industries; and 10.6 per cent for chemical industries.

Mohammed Ali Al Shorafa, chairman of ADDED, said that industrial performance during the first half of 2020 demonstrates an increase in most of the performance indicators of Abu Dhabi’s industrial sector despite the impact on the coronavirus infection on both the regional and global economies.

Al Shorafa added: “The report’s positive results reflect the success of the initiatives recently launched by the Abu Dhabi Government and implemented by ADDED in partnership with various government entities. These initiatives aim to support and accelerate sustainable economic development and ensure business continuity in the emirate.”

Al Shorafa emphasised the role played by ADDED’s IDB in facilitating various industrial licences and in providing services to investors will help enable the industrial sector in the emirate.

The incentive initiatives provided for the industrial sector through the ‘Electricity Tariff Incentive Programme’ (ETIP) and ‘Abu Dhabi Local Content’ (ADLC) programme, along with the ancillary projects of IDB to support basic industries, achieve sustainability in the industrial sector and enhance its legislative framework.

“All of these initiatives and projects will have a remarkable positive impact on achieving the industrial sector’s stability; increasing its growth rates, especially across manufacturing industries; and boosting the sector’s contribution to the emirate’s non-oil GDP,” Al Shorafa concluded.

Rashed Abdul Karim Al Balooshi, undersecretary of ADDED, said: “Despite the impact of the Covid-19 crisis on various business sectors, IDB’s industrial performance report showed an increase in the number of licences with a converted status to ‘Under Construction,’ that reached 32 during H1 of 2020, recording a growth rate of 33 per cent, compared to 24 licences during the same period of 2019.”

The investment value of industrial licences converted into the ‘Under Construction’ status increased during H1 2020, reaching Dhs570m in value, compared to Dhs138m recorded last year, Al Balooshi added.

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