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Government Incentive Programmes for the Industrial Sector

Government Incentive Programmes for the Industrial Sector

The Abu Dhabi Industrial Strategy aims to elevate the Emirate’s industrial sector by implementing tailored incentive programmes that support business growth and innovation. These incentives are designed to attract and sustain mainland industrial businesses. KEZAD plays a crucial role by facilitating easy access to these programmes, which are managed by the Abu Dhabi Department of Economic Development (ADDED) and the Industrial Development Bureau, offering streamlined processes and comprehensive support to industrial businesses.

Energy Tariff Incentive Programme

Abu Dhabi Local Content Programme

Industrial Land Rebate Incentive

Golden List

Customs Exemption

Smart Manufacturing Incentives Programme

Energy Tariff Incentive Programme – Electricity

The Energy Tariff Incentive Programme (ETIP) offers rebates on electricity tariffs to qualifying industrial companies, with discounts of up to 30%. The ETIP-Electricity formula is based on accumulated points weighted by the following criteria:

Criteria Weight
Economic Impact

Weight

50%
  • Investment
  • Emiratisaton
  • Skilled Labours
  • Supply Chain

Weight

  • 15%
  • 15%
  • 10%
  • 10%
Productivity

Weight

30%
Energy Management System

Weight

20%
Total

Weight

100%

The category within which the business is classified, based on its score, determines the tariff rate:

Category Score Electricity Price
A

Score

>80

Electricity Price

20 fils/kWh
B

Score

60% – 79%

Electricity Price

22 fils/kWh
C

Score

50% – 59%

Electricity Price

25 fils/kWh

Energy Tariff Incentive Programme – Gas

The Energy Tariff Incentive Programme (ETIP) offers rebates on gas tariffs to qualifying industrial companies, with discounts of up to 35%. The ETIP-Gas formula is based on accumulated points weighted by the following criteria:

Criteria Weight
Economic Impact

Weight

50%
  • Investment
  • Emiratisaton
  • Skilled Labours
  • Supply Chain

Weight

  • 15%
  • 15%
  • 10%
  • 10%
Productivity

Weight

30%
Energy Management System

Weight

20%
Total

Weight

100%

The category within which the business is classified, based on its score, determines the tariff rate:

Category Score Gas Price
A

Score

>80

Gas Price

7.9 AED/MMB TU
B

Score

60% – 79%

Gas Price

9.1 AED/MMB TU
C

Score

50% – 59%

Gas Price

10.3 AED/MMB TU

Abu Dhabi Local Content Programme (ADLC)

The Abu Dhabi Local Content (ADLC) programme aims to direct government spending to incentivise suppliers who significantly contribute to Abu Dhabi’s local economy. By prioritising suppliers with higher contributions, the ADLC uses a formula to evaluate and select suppliers based on their economic impact on Abu Dhabi:

Criteria Weight
Financial Bid

Weight

60%
ICV (In-Country Value) Score

Weight

40%

Industrial Land Rebate Incentive Programme

The Industrial Land Rebate Incentive Programme, a pivotal initiative of Abu Dhabi’s Industrial Strategy, aims to cultivate an appealing and sustainable environment for industrial investors. This programme offers eligible new industrial ventures low rent rates and long-term contracts, positioning Abu Dhabi as a premier destination for industrial investments in the region. The initiative provides up to 80% rebate on land rent prices. The target sectors include chemicals, pharmaceuticals, food processing, machinery and equipment, transportation, electrical, and electronics.

Criteria Weight
Economic Impact

Weight

50%
  • Investment
  • Emiratisaton
  • Skilled Labours
  • Supply Chain

Weight

  • 15%
  • 15%
  • 10%
  • 10%
Productivity

Weight

30%
Spending on AD Labour Housing

Weight

20%
Total

Weight

100%

Based on their score, applicants are categorised as follows:

Category Score Gas Price
A

Score

>80

Gas Price

5 AED/Sqm
B

Score

60% – 79%

Gas Price

7.5 AED/Sqm
C

Score

50% – 59%

Gas Price

10 AED/Sqm

Golden List

In collaboration with the Department of Government Support (ADGS), the Golden List programme aims to enhance the local supply chain by increasing the demand for locally manufactured goods through government procurements. This programme directs government spending towards suppliers who make significant contributions to Abu Dhabi’s economy.

Eligibility Criteria

Valid ICV score of 40% or above

Valid ICV score of 40% or above

Valid and active industrial license

Valid and active industrial license

Updated production and product data in the DED system

Updated production and product data in the DED system

Key Benefits of Golden List

Increased product exposure and marketability

Enhanced ICV score

Higher probability of winning government or semi-government contracts

Customs Exemption

The Customs Exemption programme provides a 5% exemption from customs duty on industrial production line inputs, encouraging the establishment of industrial projects in the United Arab Emirates. This exemption is designed to reduce costs and support the growth of the industrial sector.

Eligibility Criteria

Imported materials must be directly related to the finished product manufactured by the factory.

Imported materials must be directly related to the finished product manufactured by the factory.

Imported materials cannot be any of the factory's finished products

Imported materials cannot be any of the factory's finished products

The exemption varies depending on the license type (Production or Under Construction).

The exemption varies depending on the license type (Production or Under Construction).

Smart Manufacturing

The programme aims to drive productivity and technology adoption by providing financial incentives to Abu Dhabi manufacturers for upgrading their technologies.

Programme Benefits :

  • Consultancy fees up to AED 50K
  • Hardware and software upgrades up to AED 1.3M

Eligibility Criteria

Digital Maturity

Digital Maturity

Existing SME

Existing SME

Financial Eligibility

Financial Eligibility

Technical Eligibility

Technical Eligibility

Targeted Subsectors

Electrical

Electronics

Food Processing

Chemicals

Pharmaceuticals

Machinery & Equipment

Transportation

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