Manufacturing industries are latent energies waiting for stimulusTruth Consultancy
A specialized study prepared by Truth Economic & Management Consultancy in Abu Dhabi called for the introduction and implementation of integrated incentive programs for industrial establishments that are in the establishment stage up to five years from the date of commencement of construction, in view of the unfavorable economic conditions and the difficulty of financing and lending, And the need for permanent comparison with neighboring countries (GCC) in all laws and procedures related to the industry and its costs, especially in terms of energy prices, rents, labor wages and accessibility of products to world markets.
The study also called for the protection of local markets through training, qualification and strict control of imports in accordance with international standards and the activation of all procedures allowed by the laws of free trade between countries to combat dumping, temporary protection and reciprocity.
The study covered in detail all the challenges faced by the sector, including the challenges of energy prices, the high cost of labor recruitment, the increase in rents of industrial lands as well as their scarcity, the difficulty of financing industrial projects, the absence of the federal strategy for the industrial sector, the failure of the new industrial law to meet current economic conditions, non-protection of national products , Weak control over markets and entry of non-conforming foreign goods and dumping of the market.
The study focused on the settlement of the strategic industries, which is characterized by the state of international competition, the most important petrochemical industries and all related to the complementary industries, as well as the industry of aluminum and iron and other heavy industries, which is the backbone of all other industries, and is the basis of success in any desired industrial boom in which The highest value added, and provides the state treasury with a lot of financial resources that can be directed to other economic sectors, and establish for the self-sufficiency of the industrial and high-value technical exports of high value.
The study called for the need to speed up the issuance of the new industry law as the source of legislation for the industrial sector, and the subsequent regulations and decisions of the regulatory and strategic authority, whether issued by the federal government or issued by the official authorities of local governments.
The study pointed to the need to establish an independent ministry for industry or at the very least the establishment of an independent federal body for industry, which means this important sector, which contributes more than 10% of the country’s GDP.
The study stressed that the demand for the establishment of a ministry or a federal body of industry is based on the need to assign the task of restructuring and regulating the industrial sector and the formulation of policies and the development of strategic plans for this important sector, at the state level.
The recommendations of the study pointed to the need to prepare a specialized comparative study on the industrial sector in the GCC countries in partnership with the General Secretariat of the GCC countries in terms of fees, costs and procedures for the foundation and establishment of companies and institutions that deal with the industrial sector and to reflect the current and real competitive situation of the state compared to other GCC countries. It must develop appropriate solutions to the problems and obstacles faced by industrialists in the State.
The study called on the proposed federal authority, which is concerned with the industrial sector, to formulate its visions in front the political and economic leadership to issue the appropriate decisions to support and boost the industrial sector and put it at the top of competitiveness with the rest of the GCC countries.
The study pointed to the need to prepare a map for industrial investment in the country and identify the most important activities that should guide the local, regional and global investments and attract foreign investment to enter the various industrial activities and technology transfer and then localize it.
It also called for the establishment, encouragement and support of specialized financing bodies to provide services to this sector, unlike Emirates Industrial Bank. She pointed to the need to establish an independent body to support and develop industrial exports and raise the slogan made in the UAE and build a name for the state associated with quality and efficiency, similar to German and Japanese industrial products.
The study recommended in its recommendations the great efforts of the Office of Industry Organization in Abu Dhabi, and recommended the preparation of an annual conference entitled “Developing solutions and strategic solutions to the problems and obstacles facing the industrial sector”. The conference will result in a standing committee with broad powers to develop appropriate solutions in accordance with legislation and laws.