MoIAT, Tawazun Industrial Park and the Emirates Development Bank partner to offer new financing solutions for defense industry
UAE-based SMEs in the industrial sector will soon be able to access new financing solutions and enablers following a MoU signed at IDEX and NAVDEX 2023 between the Ministry of Industry and Advanced Technology (MoIAT), Tawazun Industrial Park (TIP) and the Emirates Development Bank (EDB).
Under the MoU, MoIAT and TIP will provide incentives to attract industrial investments to the park in line with the UAE ministry’s efforts to create an attractive business environment for local and international investors, as well as stimulate innovation and the adoption of advanced technology in industry. EDB will provide flexible and competitive financing solutions such as green financing, financing capital expenditure, and financing start-ups and SMEs.
In line with the Make it in the Emirates initiative, the MoU aims to attract industrial investors to strategic sectors such as defense by providing a package of incentives and benefits. It will ultimately support the sustainable development of the industrial sector and help provide an attractive business environment for local and international investors, as well as incentivize the use of advanced technologies in industrial solutions.
His Excellency Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology said, “The MoU will help empower the industrial sector in line with our mission, and the objectives of Operation 300bn. This strategy aims to enhance the business environment that attracts local and international investors, especially to vital industrial sectors under the umbrella of Make it in the Emirates, the National ICV Program, and the Technological Transformation Program.
He added that EDB is one of the ministry’s most important strategic partners. Over the past year, the bank has provided industrial companies with AED 3.14 billion worth of incentives, enablers and financing solutions Similarly, TIP, the UAE’s integrated national centre for defense, security and technology industries, is critical in enabling local defense contractors.
The ministry will continue to facilitate partnerships that promote the growth and competitiveness of the national industrial sector and support local supply chains. MoIAT is implementing many enabling projects and initiatives in cooperation with federal and local government entities as well as the private sector, such as enabling manufacturers through technology transformations. In addition to encouraging companies to benefit from National ICV Program membership, we have introduced initiatives such as the exemption of customs fees for industrial production inputs, which saved industry nearly AED 4 billion in 2022.
The defence sector is a priority industry for MoIAT, which aims to increase the contribution of the industrial sector to GDP to AED 300 billion by 2031, raise productivity, and create more job opportunities for Emiratis. By 2030, the UAE will increase its domestic defense expenditure from 10 percent to 30 percent of its total defense expenditure, which represents an opportunity to substitute imports and promote supply chain localization.
