18 factories begin production in Abu Dhabi in the first quarter

18 factories begin production in Abu Dhabi in the first quarter

14 Apr 2020
Industrial Development Bureau, DED - Abu Dhabi

The total number of new industrial licenses that entered into production in the Emirate of Abu Dhabi during the first quarter of 2020 amounted to about 18 industrial licenses distributed into 12 licenses in Abu Dhabi and 3 in each of Al Ain and Al Dhafra, respectively, with investments amounting to 46.8. One million dirhams.

The Industrial Activity Movement Index report issued by the Industrial Development Office of the Abu Dhabi Department of Economic Development stated that the industrial licenses that entered into production in Abu Dhabi during the first quarter of this year achieved a growth of 12.5% compared to the same period of 16 privatizations only.

His Excellency Muhammad Ali Al-Shurafa, Head of the Department of Economic Development in Abu Dhabi, stressed the Abu Dhabi government on strengthening the role of the industrial sector as one of the main engines for achieving sustainable economic development by promoting foreign direct investments in the manufacturing sector by working to provide a package of incentives and competitive enablers in this sector. His Excellency the Head of the Department indicated that the contribution of the manufacturing industries sector to the gross domestic product of the Emirate of Abu Dhabi during the year 2019 in fixed prices amounted to 6%, while the sector recorded a contribution of 12% to the non-oil GDP at constant prices during the same year. According to the report of the Industrial Development Bureau, the total number of industrial licenses registered in Abu Dhabi until the end of the first quarter of 2020 reached about 1362 industrial properties, of which 824 were in production status and 538 were in production distributed over 1018 factories in Abu Dhabi, 299 in Al Ain and 45 in Al Dhafra, while the total number of industrial pioneers licenses reached. The initial license granted to the investor and registered with the Industrial Development Office is 220 licenses, bringing with it the total of 1582 industrial licenses issued by the office.

The industries in the Emirate of Abu Dhabi are distributed according to the type of activity into 11 industrial fields, where the construction and glass industries have registered 323 specialties, the metal industries 285 licenses, the rubber, plastic and fiberglass industries 166 specialties, the chemical industries 165 specialties and the food 147 privates, then the equipment and machinery industry 138 specialties and the wood and paper industry 119 private and general industries 91 electronic and electrical industries, 56 specializations, energy and sustainability industries (5), and finally the printing industry, textiles and leather garments, 44 specialties and media. For his part, Rashid Abdul Karim Al Balushi, the Undersecretary of the Department, explained that the total value of investments in the industrial sector at the level of Abu Dhabi amounted to 550.29 billion dirhams. 359 billion and 320 million dirhams for existing factories in a state of production and 180 billion and 940 million for factories under construction, a total of 538 factories planned to enter the industrial sector soon, in addition to 10 billion and 3 million dirhams, an estimated value of about 220 shares of industry leaders.

The report indicated that the existing investments in the industrial sector due to the state of production are distributed according to the three regions in the Emirate of Abu Dhabi: 311 billion and 320 million dirhams in Abu Dhabi, 24 billion and 360 million in Al Ain, and 23 billion and 640 million dirhams in the Al Dhafra region, while the Abu Dhabi region is expected to record 25 billion and 360 million dirhams. Investments for factories under construction, 148 billion and 830 million in the Al Dhafra region and 6 billion and 750 million dirhams in the Al Ain region. He added that local investments in the industrial sector recorded 78 of the total investments at about 431 billion and 180 million dirhams, while foreign investments in the sector recorded 121 billion and 430 million dirhams, representing 22%.

The report stated that the licenses transferred from industry leaders to under production recorded 21 industrial shares during the first quarter of this year, including 16 in Abu Dhabi, 3 in Al Ain, and two licenses in Al Dhafra, with a total investment of 542 million dirhams. According to the report of the Industrial Development Office, the movement of industrial licensing procedures that were completed during the first quarter of 2020 amounted to 6985 transactions, including 6216 customs exemptions, 159 renewal of a production case, 37 issuance of a new industrial license "industry pioneers", 65 renewals of an industrial license under construction and 418 transactions for amendments. Technical, 5 administrative amendments and 28 fee payment transactions, among others. Additional measures to ensure the safety of workers, the Abu Dhabi Department of Economic Development has taken a new set of precautionary and preventive measures with the aim of protecting the health and safety of expatriate workers, and reducing their chances of infection with the emerging corona virus (Covid 19). The department issued a circular prohibiting the transfer of workers outside the emirate, and its movement on the city of Abu Dhabi, Al Ain and Al Dhafra, in addition to preventing the entry of non-resident workers in the emirate to it. This step comes in order to ensure that physical distancing practices are followed, to reduce contact with people who may be infected with the disease, to provide the greatest degree of prevention and to maintain public health.

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