Abu Dhabi converts license status for 29 industrial facilities

The Industrial Development Bureau (IDB) of the Abu Dhabi Department of Economic Development (ADDED) has revealed Abu Dhabi’s industrial performance report for H1 2020, which highlighted that the number of industrial licenses with a converted status to ‘production’ reached 29, with a total investment value of $707.8m (AED2.6bn).

As per the report, new industrial licenses under the ‘Industry Pioneers’ category grew by 18% while the licenses with ‘Under Construction’ status rose by 33%, year-on-year, UAE’s state-run news agency Wam reported.

Chairman of ADDED, Mohammed Ali Al Shorafa, said that industrial performance during H1 2020 demonstrates an increase in most of the performance indicators of Abu Dhabi’s industrial sector despite the COVID-19 crisis and its impact on both the regional and global economies.

Al Shorafa said, “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 significance of the leading role played by ADDED’s IDB in facilitating the issuance procedures of various industrial licenses and in providing high-quality services to industrial investors.

“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.

Commenting on the report, undersecretary of ADDED, Rashed Abdul Karim Al Balooshi, Undersecretary of ADDED, said that it demonstrated a significant increase in the investment value of industrial licenses converted into the ‘Under Construction’ status during H1 2020. which reached $155m (AED570m) in value, compared to $37.57m (AED138m) recorded last year. 

Speaking about the emirate’s industrial performance, executive director of IDB, Mohammed Munif Al Mansouri, said: “The report’s positive results indicate the continuity and stability of the operations and construction in Abu Dhabi-based factories and industrial facilities despite COVID-19.”

He added that the total number of industrial licenses issued in Abu Dhabi by the end of H1 2020 reached 1,608 licenses, categorised into 829 licenses with ‘Production’ status; 539 licenses with ‘Under Construction’ status; and 240 new ‘Industry Pioneers’ licenses. 

Al Mansouri further noted that Abu Dhabi city has 21 industrial facilities whose licenses were converted to ‘Production’ status in H1 2020, compared to Al Ain city and Al Dhafra region which have eight facilities combined, with four facilities in each.

Industry distribution

Al Mansouri concluded that the new industrial facilities which have converted their license status to ‘Production’ include four facilities specialised in construction and glass industries; three facilities for food industries; four for chemical industries; five for metal industries; four facilities specialised in equipment and machine production; four facilities for general industries; a facility for each of the textile, clothing and leather industries; rubber, plastic and fiberglass industries; wood industries; industries related to sustainable energy production; and electronics and electrical industries.

Regional distribution

According to the report, the total licenses with ‘Production’ status issued in the emirate are distributed in various cities with 642 licenses in Abu Dhabi; 162 in Al Ain; and 25 licenses in Al Dhafra region.

In terms of licenses with ‘Under Construction’ status, there are 379 in Abu Dhabi city; 139 in Al Ain city; and 21 in Al Dhafra region.

The report also noted that the industrial licenses with ‘Under Construction’ and ‘Production’ statuses were mainly located in Abu Dhabi, which accounted for 74.6% of the total number of industrial licenses, compared to 22% and 3.4% in Al Ain and Al Dhafra region, respectively.

In addition, the report indicated that construction and glass industries account for the largest percentage of industrial licenses in Abu Dhabi with 20.1%; followed by 18.1% for metal industries; and 10.6% for chemical industries.

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