UAE-based SMEs in the industrial sector will soon be able to access new financing solutions and enablers following a memorandum of understanding signed at IDEX and NAVDEX 2023.
The MoU between the Ministry of Industry and Advanced Technology (MoIAT), Tawazun Industrial Park (TIP) and the Emirates Development Bank (EDB) was signed on the side-lines of the defence exhibition.
In line with the Make it in the Emirates initiative, the MoU aims to attract industrial investors to strategic sectors such as defence by providing a package of incentives and benefits. It will ultimately support the sustainable development of the industrial sector and help provide an attractive business environment for local and international investors, as well as incentivize the use of advanced technologies in industrial solutions.
The MoU was signed by Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology, Faiz Saleh Al Nahdi, CEO of the Tawazun Industrial Park, and Ahmed Mohammed Al Naqbi, CEO of the Emirates Development Bank, in the presence of Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, Sarah Al Amiri, Minister of State for Public Education and Advanced Technology, Major General Dr. Mubarak Saeed Ghafan Al Jabri, Assistant Undersecretary for Support and Defence Industries at the Ministry of Defence and Deputy Chairman of the Committee for IDEX and NAVDEX, and Tariq Al Hosani, Secretary-General of Tawazun Council, as well as senior officials from MoIAT, the Ministry of Defence, the Tawazun Council and the Emirates Development Bank.
Under the MoU, MoIAT and the Tawazun Industrial Park will provide incentives to attract industrial investments to the park in line with MoIAT’s efforts to create an attractive business environment for local and international investors, as well as stimulate innovation and the adoption of advanced technology in industry.
The Emirates Development Bank will provide flexible and competitive financing solutions such as green financing, financing capital expenditure, and financing start-ups and SMEs.
Omar Al Suwaidi said,
“The Memorandum of Understanding will help empower the industrial sector in line with MoIAT’s mission, and the objectives of Operation 300bn. This strategy aims to enhance the business environment that attracts local and international investors, especially to vital industrial sectors under the umbrella of Make it in the Emirates, the National ICV Programme, and the Technological Transformation Programme.
“The Emirates Development Bank is one of our most important strategic partners. Over the past year, the bank provided industrial companies with AED3.14 billion worth of incentives, enablers and financing solutions Similarly, Tawazun Industrial Park, the UAE’s integrated national center for defence, security and technology industries, is critical in enabling local defence contractors. Our MoU will offer incentives packages that include competitive prices for land and facilities, as well as incentives to encourage exports from TIP.”
“The ministry continues to facilitate partnerships that promote the growth and competitiveness of the national industrial sector and support local supply chains. MoIAT is implementing many enabling projects and initiatives in cooperation with federal and local government entities as well as the private sector, such as enabling manufacturers through technology transformations. In addition to encouraging companies to benefit from National ICV Programme membership, we have introduced initiatives such as the exemption of customs fees for industrial production inputs, which saved industry nearly AED4 billion in 2022.”
Faiz Saleh Al Nahdi said,
“The memorandum of understanding provides a framework for cooperation to enable and stimulate industrial sectors in the country. It also represents a platform to support the objectives of Operation 300bn as well as the goals of the Make it in the Emirates initiative, which helps the national industrial sector, especially in vital and priority industries.
“Tawazun Industrial Park will encourage and empower investors through tailor-made incentives and facilities, as well as long-term lease contracts, free lease terms, and supportive business incubators, while the Emirates Development Bank will provide financing solutions to attract foreign direct investment to the UAE.”
The defence sector is a priority industry for MoIAT, which aims to increase the contribution of the industrial sector to GDP to AED300 billion by 2031, raise productivity, and create more job opportunities for Emiratis. By 2030, the UAE will increase its domestic defence expenditure from 10 percent to 30 percent of its total defence expenditure, which represents an opportunity to substitute imports and promote supply chain localization.
Ahmed Mohamed Al Naqbi said,
“Emirates Development Bank is pleased to be forming a dynamic partnership with the Ministry of Industry and Advanced Technology along with Tawazun Industrial Park to explore collaborative opportunities in the industrial sectors and further enhance the UAE’s investment eco-system. Through this partnership, EDB will work closely with both entities to develop a strategic framework that will be beneficial to customers registered with Tawazun Industrial Park, in line with ‘Make it in the Emirates’ and attract more foreign direct investment in the UAE.
“With defence being a priority sector under MoIAT’s Operation 300bn, we are pleased to announce that EDB will be looking to provide financing up to US$ 100M up to US$ 100 million to further support the advancement of the industry. As the UAE’s development bank, our mission is to foster a healthy and sustainable economy while also contributing to the country’s industrial advancement. We look forward to creating synergies with both entities and working closely with them to support the growth of these sectors while also upscaling the UAE’s local supply chain.”
News Source: Emirates News Agency