Companies in the UAE can now boost their National In-Country Value score by integrating advanced technology into their operations following a game-changing update to the National ICV Programme’s formula.
Sarah Al Amiri, Minister of State for Public Education and Advanced Technology, said: “The first of its kind Industrial Technology Transformation Index is a game changing initiative that will supercharge industrial sustainability and 4IR adoption. By incorporating the index into the National ICV formula, we are incentivising companies in the UAE to assess their capabilities, adopt 4IR solutions, and integrate sustainability best practices. This will ultimately help to 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.
“It is a particularly pertinent time to update the National ICV formula as the UAE gets ready to host COP28 this November. We are keen on demonstrating to the international community that we are pioneering sustainable industrial development through technological transformation, innovation, and supply chain localisation. We are also aiming to attract investors to the UAE by introducing various incentives that align with flagship initiatives such as the National ICV Programme.”
Advanced technologies
The Ministry of Industry and Advanced Technology (MoIAT) has announced the update to encourage manufacturing companies in the UAE to adopt advanced technologies and 4IR solutions. The move aims to raise the sector’s competitiveness and sustainability in line with the objectives of the National Strategy for Industry and Advanced Technology, Operation 300 billion.
Entities can increase their ICV score by up to 5% by participating in the recently launched Industrial Technology Transformation Index (ITTI), which enables them to demonstrate their level of advanced technology adoption and sustainability.
This 5% Advanced Technology Bonus is added on top of the entity’s overall ICV score. Manufacturing Cost accounts for 50% of the overall score, Investment accounts for 25%, Emiratisation accounts for 15%, and Expat Contribution accounts for 10%. Entities can also receive a separate ICV Bonus, which can add a further 5% to their overall score.
ICV score
By achieving a higher ICV score, certified companies can gain a competitive advantage in the procurement process for major companies and government entities. In 2022, the programme redirected AED53 billion ($14.43 billion) into the national economy, a 25% increase over 2021, reflecting its effectiveness.
The ITTI was launched under MoIAT’s Technology Transformation Programme at the World Government Summit. It is a comprehensive framework to measure the digital maturity and sustainability of factories as well as formulate a roadmap for industrial transformation. The index promotes the integration of 4IR applications and sustainability best practices and raises awareness about the benefits of advanced technology.
It complements the National ICV Programme, which launched in 2021 as one of the ‘Projects of the 50’. The ICV Programme aims to boost economic performance and support local industries by redirecting higher portions of public spending into the national economy. The programme has become one of the main incentives for supporting economic growth and diversification in the country, making it a critical contributor to the success of the Make it in the Emirates initiative.
Supply chain localisation
The programme contributes to supply chain localisation and resilience as well as the development of new local industries and services. It attracts foreign investments that support economic diversification and helps to create quality job opportunities for Emiratis in the private sector. The National ICV Programme is a key contributor to national GDP growth.
To help companies understand and leverage the updated ICV formula, MoIAT will host a series of workshops and sessions in the coming weeks. Companies can register for the workshops by contacting the ministry’s team at icv@moiat.gov.ae.
MoIAT will also raise awareness of the new formula at the Make it in the Emirates Forum, as well as several roadshows. There will also be awareness sessions at Adipec in October and COP28 in November.
Manufacturing companies interested in revising their ICV score after completing the ITTI assessment can contact their certifying bodies to revise their score for no additional fees.-- TradeArabia News Service