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21-03-23

UAE Manufacturing Companies Offered Incentives to Adopt Advanced Technology, Sustainability

(MENAFN) The Ministry of Industry and Advanced Technology in the United Arab Emirates (UAE) has launched the Industrial Technology Transformation Index to measure the digital maturity and sustainability of factories in the country. The initiative was announced at the World Government Summit in Dubai last month, and it aims to encourage UAE-based manufacturing companies to adopt advanced technology and Fourth Industrial Revolution (4IR) solutions.

Companies that participate in the Industrial Technology Transformation Index can increase their In-Country Value (ICV) score by up to 5 per cent. The ICV score is a comprehensive framework that measures a company's level of technology adoption and sustainability. Half of the total ICV score is determined by manufacturing costs, while investment contributes a quarter. Emiratisation accounts for 15 per cent, and expatriate contribution accounts for 10 per cent.

The 5 per cent bonus is added on top of a company's overall ICV score. The ministry announced the update on Monday to encourage manufacturing companies in the UAE to adopt advanced technology and sustainability solutions. Entities can also be awarded a separate ICV bonus, which can increase their overall score by 5 per cent.

The initiative is expected to "supercharge" industrial sustainability and the adoption of Fourth Industrial Revolution, according to Sarah Al Amiri, Minister of State for Public Education and Advanced Technology. She said that by incorporating the index into the National ICV formula, the UAE is incentivising companies to assess their capabilities, adopt 4IR solutions, and integrate sustainability best practices. This will ultimately help enhance productivity, increase sustainability, boost competitiveness, and raise efficiency in line with national efforts to transform industry and achieve net-zero carbon emissions by 2050.

The ICV programme aims to boost the private sector's participation in the economy, diversify output, and localise critical parts of the supply chain. The UAE government hopes that the incentives offered under the Industrial Technology Transformation Index will encourage more companies to adopt advanced technology and sustainability solutions, leading to a more competitive and sustainable manufacturing sector in the country.
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