Hamdan bin Mohammed approves strategic incentives to boost Dubai’s economy

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, today chaired a meeting of the council, during which he approved several transformative initiatives to stimulate the industrial sector in Dubai, incentives for the agricultural technology sector, and a policy banning single-use plastics. The meeting was attended by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, and Deputy Prime Minister and Minister of Finance of the UAE. His Highness underscored the pivotal role of a diversified economy in realising Dubai’s ambitious objectives outlined in the Dubai Economic Agenda D33, which seeks to propel Dubai into the ranks of the world’s top three cities by 2033 in economic terms, in line with His Highness Sheikh Mohammed bin Rashid Al Maktoum’s vision.

His Highness said: “Dubai leads by example, empowering businesses, fostering innovation, and embracing sustainability. The approved incentives will double Dubai’s agricultural sector by 2033, reinforce its global leadership in agricultural technology, and enhance food security sector. In the industrial sector, we’re poised to raise manufacturing’s added value.

” His Highness said: “These steps represent significant measures to expand the contribution of agriculture to Dubai’s diverse economy by doubling the size of the sector. We call on investors, experts and innovators to join our global platform for research, development and innovation. ” His Highness also stressed the social impact of curbing single-use plastics, nurturing sustainability, and promoting climate awareness, particularly ahead of COP28.

His Highness expressed his appreciation for individuals and institutions reducing their use of single-use bags and plastics in conjunction with the UAE’s hosting of COP28 this month. His Highness also stressed the importance of the role played by all segments of society in establishing a culture of sustainability, participating in reducing carbon footprints, enhancing the circular economy and laying the foundations for a future based on climate awareness. The Executive Council approved an ambitious plan to boost Dubai’s industrial sector.

The strategic initiative is in line with the goals of the Dubai Economic Agenda D33 and aims to increase MAV by AED58 billion, equivalent to 2. 5 times the sector’s current value. The plan is designed into three key programmes spanning the 2024-2033 period: The National Program supports all manufacturing companies, the Special Program caters to priority sectors, and the Strategic Program fosters growth through exemptions, investments in infrastructure, and capital facilities.

This strategic approach positions Dubai as a global manufacturing powerhouse, furthering its economic potential. The Executive Council endorsed a plan to double the size of Dubai’s agricultural sector by 2033. This strategic initiative aims to position Dubai as a global leader in adapting and deploying agritech, transforming the city into a hub for agricultural research and innovation.

This endeavour will attract international corporations and nurture local enterprises, contributing to economic growth, enhancing competitiveness and supporting food security. The incentive package encompasses five main areas, including investment benefits and fee exemptions, competitive financing loans, research and development platforms, attracting world-leading companies and facilitating local market entry for local producers. This comprehensive approach involves streamlining agricultural licensing, offering exemptions from government fees, attracting specialised talents, and strategic partnerships to support growth.

Notably, it aims to stimulate the use of clean and renewable energy sources in agritech. The plan seeks to attract major global companies, emerging firms and local enterprises while promoting the consumption of locally produced goods. The Executive Council also approved the Government Procurement Program’s In-Country Value Program, an initiative to support local businesses, boost SME growth, and promote local production.

In alignment with the Dubai Economic Agenda D33’s goals, the programme adds local production evaluation criteria to government procurement tenders and requires government departments to allocate a percentage of purchases to SMEs. It also seeks to include clauses in procurement contracts with financing options for SMEs to ensure higher participation in the government procurement process. Additionally, the programme establishes a local content management department to support and direct government procurement of local content.

The Executive Council has extended its single-use bags reduction policy to encompass more plastic materials as part of the phasing out of single-use plastics by 2026. This policy now extends to items such as single-use plastic bags, tableware and styrofoam containers. Community awareness campaigns, led by government departments and private retailers, continue to promote eco-friendly alternatives to single-use plastics.

A recent survey reflects a strong desire for single-plastic alternatives, with 72% of Dubai’s community members expressing willingness to adopt eco-friendly options. The survey also showed 62% of individuals already use environmentally friendly alternatives, and 71% of hotels, 67% of shops and 50% of restaurants in Dubai are in the process of transitioning towards sustainable alternatives. These steps, which are aligned with Dubai’s preparations to host COP28, emphasise the importance of sustainability, reuse and recycling in shaping the global green and circular economy.

The implementation of the policy, initially introduced in February 2022, is being continually evaluated to ensure single-use plastic bags are completely phased out by 2026. Follow Emirates 24|7 on.