Etihad Airways joins UAE's In-Country Value programme to support local economy

The initiative aims to increase government expenditure on Emirati products and services to almost $15bn by 2025

Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, centre, Sarah Al Amiri, Minister of State for Advanced Technology, second right, and Mohammed Al Shorafa, chairman of Etihad Aviation Show more

Etihad Airways has become the UAE's first airline to join the Ministry of Industry and Advanced Technology’s In-Country Value (ICV) programme, which seeks to support local industrial growth.

The ministry is expanding the programme’s scope to include new sectors such as aviation as part of the national industrial strategy to “sustain economic growth and raise the efficiency and competitiveness of the industrial sector”, it said in a statement on Wednesday.

By joining the programme, Etihad will prioritise local suppliers and UAE companies in the procurement process. It will also encourage global suppliers to establish branches in the country, attracting more foreign investments to the UAE, the Ministry of Industry and Advanced Technology (MoIAT) said.

“The ICV programme is one of the pillars of the national strategy for advanced industry and technology, Operation 300bn. It benefits certified companies by increasing demand for their products and services by redirecting government expenditure towards local companies,” Omar Al Suwaidi, undersecretary of MoIAT, said.

“The initiative encourages the growth of the industrial sector in the UAE, supports the creation of quality jobs, and provides incentives for companies to adopt advanced technologies. Certification is awarded based on criteria such as the value of spending and investment in the country, Emiratisation and the adoption of advanced technology.”

The ICV programme, part of the UAE's Projects of the 50 that was launched in September, aims to boost the growth of UAE-based industries by redirecting half of government spending on procurements and tender contracts into the national economy by 2031.

It has expanded significantly since its launch, with 45 federal government bodies and 18 national companies having signed up for it. Other companies that are part of it include clean energy company Masdar, Emirates Global Aluminium, Etihad Rail, Emirates’ defence conglomerate Edge and Sharjah Investment and Development Authority (Shurooq).

The programme redirected more than Dh41 billion ($11.1bn) in 2021 into the local market, compared with Dh27bn two years ago, according to MoIAT.

It further aims to increase the number of certified vendors within the programme to 7,300 companies from 5,000 and raise government expenditure on Emirati products and services to Dh55bn by 2025 from Dh33bn in 2020.

The initiative is also aimed at creating between 90,000 and 120,000 jobs, and contributing an additional Dh51bn to Dh54bn to local gross domestic product by 2031.

Joining the programme helps companies to spur growth, innovation and competitiveness, Mr Al Suwaidi said.

“The programme also helps to create more robust, efficient supply chains and underlines the close co-operation between the ministry, federal and local authorities, and major national companies. Purchasing the services of programme members will become one of the most important means of supporting and empowering the UAE industrial sector over the course of the next 50 years,” he said.

Etihad, as part of its “Al Watani” local content programme, has already collaborated with more than 1,000 local vendors with more than 35 per cent of its spending directed towards purchases in the UAE market, the statement said.

“In joining this latest initiative, we can expand our reach to local supply chains, contributing to the development of a sustainable, diversified and value-added economy for the UAE,” said Tony Douglas, group chief executive of Etihad Aviation Group.

“We aim for this agreement with the MoIAT to sustain Etihad’s expenditure on national companies and enhance the opportunities for local vendors and SMEs [small and medium sized enterprises] in Etihad’s supply activities.”