More than 50 new industrial facilities went into production in Abu Dhabi last year despite the impact of the global coronavirus pandemic as the sector contributed over 10 percent to the emirate’s non-oil GDP.
A new report, issued by the Industrial Development Bureau of the Abu Dhabi Department of Economic Development (ADDED) revealed that the emirate saw a total investment of AED3.9 billion during 2020, with 35 facilities launching in Abu Dhabi, 11 in Al Ain and five in Al Dhafra.
Of these, there were 11 new metal facilities that were placed into production last year, alongside eight equipment and machinery facilities, six food and chemical facilities, five construction and glass industries, two electronics, energy and sustainability industries facilities, one textiles, clothes and leather, timber and paper facility, in addition to six general facilities.
The manufacturing sector’s contribution to Abu Dhabi’s overall GDP in 2020 amounted to 6.3 percent and 10.7 percent of non-oil GDP.
Mohamed Ali Al Shorafa, chairman of ADDED, said Abu Dhabi is continuing to promote the role of industry sector as a key driver of sustainable economic development by enhancing foreign direct investment (FDI) and by providing a package of competitive and enabling incentives.
He said that despite the repercussions of Covid-19, the new investments in Abu Dhabi’s industrial sector reflected investors’ confidence in the emirate’s investment climate.
According to the new report, 283 industrial licences were registered in Abu Dhabi in 2020 taking the total industrial licences to 1,694 including 839 facilities that are in production and 546 facilities under construction.
The report indicated that the total investment value for Abu Dhabi industrial facilities under construction and in production rose to over AED553 billion during 2020.
It also revealed that the chemical industries constituted the highest investment value, reaching AED211 billion, followed by energy and sustainability with AED202 billion, construction and glass industries with AED44 billion, equipment and machinery with AED10 billion, food with AED8 billion and other industries with around AED6 billion.
The Industrial Development Bureau also said it has helped to advance Abu Dhabi’s financing ecosystem by signing a number of agreements with strategic entities and partners with the aim of boosting the GDP and industrial sector growth.
It said it has issued policies to encourage competitiveness among products made in Abu Dhabi while a policy was also developed to cover the demands of the domestic market and analyse the gaps in domestically manufactured basic products.