Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED) has unveiled that ADDED will provide 100 investment opportunities, with a combined market size of AED 123.3 billion (US Dollar 33.5 billion) by 2027 under the ‘Abu Dhabi Channel Partners’, launched as part of Abu Dhabi Industrial Strategy’s (ADIS) initiatives to enhance industrial ecosystem by providing detailed guides of investment opportunities and tailored incentives packages to address the needs of key players and investors.
Addressing the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), the World’s largest and most inclusive gathering for the energy industry, Today, Al Zaabi announced that the new batch of ‘Abu Dhabi Channel Partners’ programme to incentivise investors in the thriving chemical industries will include 33 investment opportunities with a combined market size of AED 22.08 billion (USD 6 billion) by 2027.
The ‘Abu Dhabi Channel Partners’ programme has identified a set of investment opportunities in the 7 manufacturing subsectors targeted by the Abu Dhabi Industrial Strategy (ADIS), which are food processing, pharmaceuticals, chemicals, electrical, electronics, machineries and equipment, and transportation.
The detailed guide for the 33 investments in the chemical industries highlights Abu Dhabi’s unique value propositions, and growth opportunities in the industry, in the light of growing focus to increase home-grown chemical industries. The compound annual growth rate (CAGR) of investments opportunities identified in the chemical industries ranges between 2% to 14% during the period 2022-2027.
Al Zaabi said: “In just one year since its launch in June 2022, ADIS has led the sector to achieve remarkable growth in different areas. During these 12 months, the number of new industrial licenses granted in Abu Dhabi increased by 16.6%, while investments of factories moving into production phase skyrocketed over 85%. The number of active manufacturers in the emirate rose nearly 5% to 960 factories”.
“The manufacturing sector plays a key role in our diversification efforts that have led to a stellar growth of non-oil sectors. Last year, our non-oil exports grew by 26% and the average annual growth rate of non-oil exports between 2016 and 2022 was 6% across all sectors. Supported by ADIS initiatives, we are targeting to increase non-oil exports to AED 178.8 billion by 2031.”
He announced that Abu Dhabi’s non-oil sectors grew by over 12% in the second quarter of 2023, and by 9.2% in the first half of 2023. This growth led the total GDP to rise by 3.5% in the second quarter, and nearly 4% in the first six months of this year, compared to corresponding periods in 2022. The non-oil sectors now make up 53% of Abu Dhabi’s total output.
During Q2-2023, the manufacturing sector rose by 7% compared to the same period last year to AED 25 billion, recording its highest quarterly value-added since 2014, and representing 8.7% of total GDP and 16.2% of non-oil GDP.
Al Zaabi reiterated Abu Dhabi’s unwavering commitment to continue building partnerships with key partners and stakeholders, increase access to financing enhance ease of doing business, and further enhance Abu Dhabi’s global competitiveness and attractiveness as the emirate is cementing its position as the preferred destination for talents, investments, and businesses.
In May 2023, ADDED announced the first batch of incentives under ‘Abu Dhabi Channel Partners’ programme, which includes 20 investment opportunities in the food processing sector in Abu Dhabi with a combined market size of about AED 29.4 billion (USD 8 Billion) by 2027.
Launched by ADDED’s Industrial Development Bureau (IDB), the ‘Abu Dhabi Channel Partners’ programme aims to increase the emirate’s global competitiveness, attract new foreign and domestic direct investments (FDIs and DDIs), facilitate transfer of technology, knowledge, and expertise, and increase the industrial sector’s contribution to Abu Dhabi’s non-oil GDP.
By WAM