In Pursuant to the Federal Decree No. 4 of 2018 of the United Arab Emirates on measures to improve the United Arab Emirates management system in the fields of Investments and Foreign Trade, the Authority of Investment and Foreign Trade of United Arab Emirates was established by the merger of the State Investments Committee of the United Arab Emirates and the Authority of Foreign Trade.

The United Arab Emirates Federal Procurement Authority was established with the aim of developing local content with all its components at the level of the national economy, and improving and following up on government procurement. To achieve development and financial goals in accordance with national visions, strategies and plans, and in accordance with the applicable laws and regulations.

The United Arab Emirates Federal Procurement Authority is working to ensure successful procurement of goods from different countries and development of regions in the UAE. The aim for rural development is the process of improving the quality of life and economic well-being of people living in rural areas of the United Arab Emirates, often relatively isolated and sparsely populated areas.

STRATEGIC GOALS: Develop local content capable of meeting demand and achieving economic impact Maximizing the benefit of government procurement and activating its role in economic development Contribute to achieving transparency and excellence in government procurement processes.

INITIATIVE FOR 2020 COVID-19 PANDEMIC: An exceptional new initiative to mitigate the financial and economic impact of the COVID-19 pandemic on 208 national products, by providing an additional price premium rate of up to 20% (in addition to the 10% price premium indicated in the regulation) for the national products specified in the initiative list, bringing the total price premium to a maximum of 30%. This premium is added to prices of the foreign counterparts of the listed local and foreign products in the bids offered in government tenders. The new initiative also provides special support for the Active Pharmaceutical ingredient (API) by granting any drug with nationally-manufactured active ingredients an additional 10% premium rate, regardless if the product is included in the initiative’s list.

THE NEW INITIATIVE AIMS TO:

* Support Local Content and national products. * Encourage national manufacturers to increase their Local Content. * Reduce the economic and financial impact on the targeted sectors. * Empower local capabilities by supporting the products targeted by the new initiative. * Upgrade the national API manufacturing capabilities * Legislative Framework Of The New Initiative

Local Content, SMEs, and Listed Companies’ Preference regulation granting local content, SMEs and publicly listed companies preference in government tenders. Article Ten: The national product is granted a price premium, by assuming the price of the foreign product 10% higher than indicated in the bid. The premium rate may be increased through an agreement between the Governing Council of the United Arab Emirates and the Center of Spending Efficiency, provided that the modified rate is explicitly stated in the tender documents.

THE PRODUCTS AND SECTORS TARGETED BY THE NEW INITIATIVE:

* 41 products in the medicine and pharmaceuticals sector. * 135 products in the medical supplies sector. * 32 products in other manufacturing sectors. * Pharmaceutical products from nationally manufactured APIs. * Increasing the 10% price premium indicated in the Local Content, SMEs, and Listed Companies’ Preference regulation, up to a maximum of 30% for 208 products, as per a preset criteria.

GOALS OF THE NEW INITIATIVE::

* Encourage national manufacturers to increase their Local Content. * Support Local Content and national products. * Reduce the economic and financial impact on the targeted sectors. * Empower local capabilities by supporting the products targeted by the new initiative. * Upgrade the national API manufacturing capabilities Targeted Sectors:


Medicine and pharmaceuticals sector. Medical supplies sector. Other manufacturing sectors. Upgrade the national API manufacturing capabilities.


ANTICIPATED IMPACT: Spending US$2.5 billion to US$3 billion on national factories during execution Support 208 products impacted by COVID-19 Local Content, SMEs, and Listed Companies’ Preference Policy: The Local Content, SMEs, and Listed Companies’ preference policy was drafted by the United Arab Emirates Federal Procurement Authority in cooperation with the relevant authorities, and approved through a regulation by the Council of Ministers within the new Government Procurement Law. The inclusion of local and foreign content requirements in the new Government Procurement Law aims to enhance local capabilities and products, and give national products a priority through the price premium policy. The regulation includes a list of national products to be purchased from national manufacturers, the National Products Mandatory List. The United Arab Emirates Federal Procurement Authority, in cooperation with the Center of Spending Efficiency, will have a major role in determining the projects that should implement the Local Content minimum threshold policy.