IDB's industrial activity report shows 57% growth in industrial facilities operating in Abu Dhabi in 2019

• Construction, glass, metal, and chemical companies dominate Abu Dhabi’s industry sector

Abu Dhabi: The number of industrial facilities operating  in Abu Dhabi grew by more than 57 per cent in 2019 to reach 66 facilities – recording a combined investment value of AED 6.29 billion -  as opposed to 42 facilities in 2018, according to the latest edition of the annual Industrial Activity report issued by the Industrial Development Bureau (IDB) of the Abu Dhabi Department of Economic Development (ADDED). 

The latest IDB report highlights the most significant statistics showcasing the local industrial sector’s performance during the previous year. A total of 1,552 industrial licenses, comprising 811 with ‘Production’ status; 535, ‘Under Process;’ and 206, ‘Industry Pioneers,’ were released by the end of 2019.

H.E. Rashed Abdul Karim Al Balooshi, Undersecretary, ADDED, said that the report reflects the significant role of IDB in fostering a business-friendly environment in Abu Dhabi and ensuring a positive and preferable investment environment for the local industrial sector. Al Balooshi added that IDB continues to design solutions to the challenges facing the industrial sector through the implementation of strategic initiatives that support the industrial investors.

Moreover, Al Balooshi pointed out the positive impact of the Electricity Tariff Incentive Program (ETIP) on the industrial sector. ETIP was launched last year as part of the Abu Dhabi Government’s accelerator programme ‘Ghadan 21.’  A new initiative to be launched this February is also expected to contribute to the sector’s growth by reinforcing public-private partnerships and increasing the private sector’s contribution to Abu Dhabi’s gross domestic product (GDP).

Al Balooshi attributed the growth in the issued industrial licenses in Abu Dhabi over the past three years to IDB’s ongoing efforts, noting a 530 per cent growth in 2019 to reach 139 newly issued licenses compared to 22 licenses in 2016.

H.E. emphasized ADDED’s keenness to facilitate licensing procedures for industrial facilities, with the aim of attracting more foreign and local investments to the industrial sector. While 2019 witnessed a considerable growth in the number of issued industrial licenses in Abu Dhabi, ADDED aims to double the number in Abu Dhabi, Al Ain City, and Al Dhafra.

“Under the ‘Industrial Pioneers’ category, the 2019 Industrial Activity report recorded a 11.20 per cent growth compared to 2018, which reflects the industrial investors’ interest to seek investment opportunities in Abu Dhabi. The number of industrial facilities with ‘Production’ status also increased in 2019 by 57.14 per cent compared to the figures issued in 2018,” Al Balooshi said.

He added: “These figures give credence to ADDED’s endeavors geared towards boosting Abu Dhabi’s sustainable development and economic diversification efforts, with a special emphasis on the non-oil sectors. Our ongoing endeavors are in response to our leaders’ directive to raise the emirate’s global competitiveness. ADDED will remain a key contributor to the sustainable development of various non-oil sectors.”

The IDB report also recorded a 5.7 per cent increase in industrial license renewals applied by facilities with ‘Production’ status. A total of 732 licenses were issued in 2019 compared with 696 licenses in 2018. Those with ‘Under Process’ status saw a cumulative growth rate of 9.53 per cent since 2016. An increase of 3.32 per cent was posted in 2019 in comparison to 2018.

For his part, H.E. Mohammed Munif Al Mansouri, Executive Director, ADDED’s IDB, reiterated that the bureau would continue to support the industrial sector, one of the key economic drivers in Abu Dhabi. He also highlighted IDB’s achievements in 2019 in line with Abu Dhabi Government’s vision towards supporting the non-oil sectors.

Al Mansouri pointed to the industrial sector’s positive performance last year. The industrial licenses issued to facilities under ‘Production’ and ‘Under Process’ categories in Abu Dhabi city accounted for more than 74.6 per cent of the total industrial licenses issued in Abu Dhabi, followed by  22.2 per cent in Al Ain city and 3.2 per cent in Al Dhafra region.

He added: “IDB achieved its objectives in 2019. We continue to encourage local and foreign investors to initiate their industrial businesses in Abu Dhabi by adopting leading programs and initiatives launched and executed by ADDED. These programs and initiatives are designed to support the industrial facilities and increase the productivity of local non-oil products.”

In addition, as per IDB’s Industrial Activity report, the 811 industrial licenses issued to facilities with ‘Production’ status covered various manufacturing activities. The construction and glass industries constituted the majority with a total of 170 licenses, followed by metal industries at 160 and rubber, plastic, and fiberglass industries at 90 licenses.

The report indicated that 120 licenses were issued to companies with ‘Under Process’ status in construction and glass industries; 95, metal industries; and 57, rubber, plastic and fiberglass industries. A total of 33 ‘Industry Pioneers’ licenses were issued to facilities in chemical and food industries, respectively, while 32 were released to construction and glass industries with the same classification.

Majority of Abu Dhabi’s industrial licenses were issued to construction and glass industries, which accounted for 20.7 per cent; metal industries, 17.7 per cent; and rubber, plastic and fiberglass industries, 10.6 per cent.

The report highlighted that the number of active industrial licenses issued in the emirate increased to 11.97 per cent since 2016. Meanwhile, the number of licenses with ‘Production’ status accounted for 52.26 per cent of the total industrial licenses issued in Abu Dhabi until the end of 2019,630 of which were issued in Abu Dhabi city; 159 in Al Ain city; and 22 in Al Dhafra region.

Industrial facilities with ‘Under Process’ status accounted for 34.47 per cent of the total licenses issued in the emirate. Around 374 licenses were issued in Abu Dhabi city; 140 in Al Ain city; and 21 in Al Dhafra region. As per ‘Industry Pioneers’ licenses, IDB issued 206 licenses last year, constituting 13.27 per cent of the total licenses issued.

According to the report, ADDED issued 139 new ‘Industry Pioneers’ licenses in 2019, with a total investment value of around AED 8.43 billion in which chemical industries accounted for more than AED 7.2 billion. The investment value of the metal industries with ‘Industrial Pioneers’ licenses reached approximately AED 249.2 million.

Additionally, 66 industrial licenses were issued to establishments with ‘Production’ status that were previously classified as ‘Under Process,’ achieving a 57.14 per cent growth compared to 42 transferred licenses in 2018. The investment value of these licenses amounted to AED 6.29 billion, with the metal industries accounting for around AED 2.899 billion while the wood and paper industries constituting more than AED 1.4 billion.

Similarly, under renewed licenses with ‘Production’ status, a 2.66 per cent growth rate was achieved in 2019 to reach 732 compared to 713 licenses in 2018. Likewise, 249 industrial licenses of facilities with ‘Under Process’ status were renewed last year compared to 241 licenses in 2018, recording a 3.32 per cent increase.

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© Press Release 2020