The UAE’s national In-Country Value (ICV) program aims to redirect Dh55 billion in spending on goods and services into the local economy by 2025, up from Dh39 billion in 2020, in order to attract additional investments, create new jobs, and increase private sector participation, according to government officials.
According to Abdallah Al Shamsi, assistant undersecretary for the Industrial Growth Sector at the Ministry of Industry and Advanced Technology, the program aims to boost the growth of UAE-based industries by re-directing 50% of government spending on procurements and tender contracts into the national economy by 2031.
Total spending on goods and services by federal and municipal government organizations totaled Dh134 billion in 2019, accounting for 9% of the local GDP (GDP).
According to a government source, the move is estimated to generate 90,000 to 120,000 new employment in the UAE and contribute an additional Dh51 to Dh54 billion to the local GDP by 2031.
“The private sector is the greatest beneficiary of the ICV program, and one of our main aims is to improve the private sector’s contribution to our GDP,” Mr Al Shamsi told reporters on the sidelines of the ceremony. “This is a scheme that will undoubtedly aid the growth of the private sector.”