ADDEDs Basic Industries Project
The Abu Dhabi Department of Economic Development (ADDED) is set to implement its ‘Basic Industries Project,’ an initiative that aims to define vital industrial investment areas in Abu Dhabi. The project limits the covered sectors to four to include food, medical, and power generation as well as iron, aluminium and cement industries. This project aims to make Abu Dhabi self-sufficient in the production of basic and consumer commodities.
ADDED’s Industrial Development Bureau (IDB) detailed a specific set of current investment areas for development, with an aim of attracting new investments to the four target industrial sectors. In this regard, eight investment fields have been limited to the food sector on top of the 9 investment areas in existing industries; 14 pharmaceutical and medical supplies industries on top of the nine investment areas in existing industries; 4, supporting power generation industries on top of the seven investment areas in existing industries.
H.E. Mohammed Ali Al Shorafa, Chairman of ADDED, said that the project, which is being implemented by IDB in cooperation with its strategic partners, is aligned with the vision of Abu Dhabi’s leadership to achieve self-sufficiency in the local economy by raising the competitiveness of key industries such as food, medical, energy, and many more.
H.E. Al Shorafa further stated that the project was launched in response to the Abu Dhabi Government’s directives to support the key industries and supply the domestic market with competitive and high-end local products in coordination with government and semi-government entities.
H.E. also pointed out that the Abu Dhabi Local Content program, which is one of the project’s major components, relies on three major pillars, namely increasing local purchases, increasing Emiratization in the private sector, and enhancing the local supply chain.
“We discussed the integrated action plan of the ‘Basic Industries Project’ with our strategic partners, which complements the directions being undertaken by each of these entities while also contributing to the provision of basic industrial products across the local markets. The meetings have also served as a fitting venue to suggest and create new mechanisms and guidelines to be used in the further development of local industries--prioritizing it in the procurement process via the offer of specialized programs aimed at enhancing the competitiveness of these products, developing quality standards and elevating them to the highest levels," said H.E. Al Shorafa.
H.E. further stated that the IDB had already begun meeting with several government entities to implement the project, including the Department of Health - Abu Dhabi; the Department of Energy- Abu Dhabi; Abu Dhabi Agriculture and Food Safety Authority; Abu Dhabi Investment Office; Senaat Company; and the Emirates World Aluminum (EGA), among others.
“We are sparing no effort in ensuring the continuous coordination between IDB and the Abu Dhabi Investment Office of ADDED to identify various potential investment fields and develop the existing key industries, including food and pharmaceutical and medical supply. Currently, 62 food industrial facilities and 13 pharmaceutical and medical supply industrial facilities are operating in Abu Dhabi,” H.E. said.
Amid strong support for the project, which contributes to enhancing the emirate’s industrial landscape, H.E. Al Shorafa thanked and commended IDB and its strategic partners. He further highlighted the importance of supporting and attracting investments to Abu Dhabi’s prominent and vital industries. The ADDED Chairman reaffirmed the department's commitment to implementing the project to attain food security in Abu Dhabi and the rest of the UAE.
The IDB is responsible for identifying key sectors that will contribute to the achievement of emirate’s self-sufficiency status. Additionally, the bureau is also tasked with forming an integrated team comprising representatives from the project’s stakeholders and board. The team is expected to take the lead in maintaining communication ties with strategic partners and related industrial establishments; studying and identifying current obstacles and challenges; and coming up with recommendations and suggestions related to investment.
The role of the project’s strategic partners is to determine the value of the local consumption of the basic commodities and identify the challenges and obstacles that their respective sectors are facing. They are also tasked to analyze existing gaps and identify investment opportunities in target industries to achieve local self-sufficiency.