Abu Dhabi to Pump $2.7Bln in Industrial Sector

Abu Dhabi Industrial Strategy was announced during an event attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office. (WAM)
Abu Dhabi Industrial Strategy was announced during an event attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office. (WAM)
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Abu Dhabi to Pump $2.7Bln in Industrial Sector

Abu Dhabi Industrial Strategy was announced during an event attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office. (WAM)
Abu Dhabi Industrial Strategy was announced during an event attended by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Member of Abu Dhabi Executive Council and Chairman of Abu Dhabi Executive Office. (WAM)

The UAE capital, Abu Dhabi, launched its Industrial Strategy on Thursday.

The government will invest through this strategy AED10 billion ($2.7 billion) across six transformational programs to more than double the size of Abu Dhabi’s manufacturing sector to AED172 billion by 2031 by increasing access to financing, enhancing ease of doing business, and attracting foreign direct investment.

According to the information obtained, the strategy will also create 13,600 skilled jobs, with a focus on Emirati talent, and boost Abu Dhabi’s trade with international markets, targeting to increase Abu Dhabi’s non-oil exports by 143% to AED178.8 billion by 2031.

Multiple initiatives, including a new circular economy regulatory framework, as well as new green policies and incentives, will help continue Abu Dhabi’s transition towards a smart, circular economy, powered by an industrial sector that champions responsible production and consumption across waste management, parts supply, and smart manufacturing.

Mohammed Ali al-Shorafa, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said “Abu Dhabi’s blueprint for a comprehensive industrial strategy is an ambitious vision that will guide the future of the emirate’s manufacturing sector and shape a resilient and diversified economy for decades to come.”

In line with the UAE’s industrial strategy, the roadmap will create the ideal environment for businesses to emerge and grow.

He affirmed that the strategy addresses Abu Dhabi’s ever-growing productivity goals, helps secure future investor opportunities, safeguards its human capital and boosts job creation, and enables it to pre-empt evolving market conditions and shifting trends.

While enhancing sustainability across the ecosystem in line with the UAE Net Zero by 2050 and the National Climate Change Strategy, the manufacturing industry’s ongoing evolution will be accelerated by the integration of advanced Industry 4.0 technologies to spur growth, competitiveness and innovation.

The strategy’s initiatives will also advance the emirate’s development into a global hub for future industries, with a focus on seven targeted manufacturing sectors, namely chemicals, machinery, electrical power, electrical equipment, transportation, agri-foods, and pharmaceuticals.

It includes six transformational programs that will drive growth and innovation, boost skills, strengthen the ecosystem for local manufacturers, ease access to global markets, and advance the transition to a circular economy.

The circular economy program will drive industry-wide sustainability by enabling responsible industrial production and consumption.

A robust circular economy regulatory framework for waste, recycling, and consumption will be developed and implemented.

The Industry 4.0 program will accelerate business growth through the widespread adoption of new technologies and processes to spur competitiveness and innovation.

Meanwhile, the ecosystem enablers include a digital geographic information system (GIS) mapping for industrial land search and a unified inspection program for quality control.

Further enhancements to ease of doing business is also a key focus, through reimbursement incentive programs for government fees.

In addition, the homegrown supply chain program will build industrial sector resilience by increasing self-sufficiency and promoting domestic products.

To drive local infrastructure development for end-to-end integration, a supply chain equity investments fund will be established.



SABIC Returns to Profit in Q3 Driven by Revenue Growth

SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
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SABIC Returns to Profit in Q3 Driven by Revenue Growth

SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)
SABIC reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30. (SPA)

Saudi Basic Industries Corp (SABIC), one of the world’s largest petrochemical firms, returned to profit in the third quarter, recovering from a loss a year earlier, helped by higher revenue and core earnings.

SABIC, 70% owned by Aramco, reported a net profit of SAR 1 billion ($266 million) for the three months ending September 30, according to a disclosure to the Saudi Stock Exchange (Tadawul).

This is a major improvement from a loss of SAR 2.87 billion during the same period last year.

SABIC CEO Abdulrahman Al-Fageeh said: “The increase in the third quarter’s profits compared to the same quarter last year is attributable to higher average selling prices of some key products, and a decrease in total losses on non-continuing operations.”

Analysts had projected that SABIC would achieve profits of up to SAR 1.7 billion.

SABIC attributed its growth mainly to higher average selling prices, which were partially offset by a slight decline in sales volumes.

The company’s net profit was primarily driven by an increase in operating income of about SAR 797 million, thanks to improved profit margins despite higher operating costs. Gains also came from selling its specialized business that produces plastic sheets and films, along with foreign exchange benefits in the third quarter of 2024.

Profit was also driven by a decrease in losses from discontinued operations by around SAR 3.3 billion, mainly due to the fair value assessment of Saudi Iron and Steel Company (Hadeed), classified as a discontinued operation while awaiting the closure of a previously announced sale.

This was partly offset by a drop in financing income of SAR 390 million from the revaluation of equity derivatives, which are non-cash items.