RIYADH: Global organizations need to back the design and implementation of industrial policies within less developed countries to help them combat capacity constraints, according to an official.

During the second day of the Multilateral Industrial Policy Forum, taking place in Riyadh from Oct. 23 to 24, Federica Irene Falomi, the Economic Affairs Officer at the UN Technology Bank for Least Developed Countries, said that this initiative will support nations in their economic diversification journeys.

This aligns with the entity’s mission to bolster national and regional technological efforts, strengthen partnerships across sectors, and assist countries in identifying and utilizing appropriate technologies to transform their economies and enhance livelihoods.

“In the case of this specific group of countries, I think the role of international organizations to support the design and implementation of industrial policies is particularly critical, as they often have severely constrained capacity,” Falomi stated.

She said that “industrial production varies across this group of countries, but most of them have quite undiversified economies, often relying on agricultural production and mining when present.”

Falomi highlighted that economic diversification presents a significant challenge that must be prioritized, underscoring that technology plays a vital role in this process.

She revealed that one way the UN Technology Bank supports these nations in designing and implementing industrial policies for economic transformation is through conducting technology needs reviews. “These are assessments that help least developed countries identify specific technological gaps and opportunities in key sectors for their economies like agriculture, manufacturing, as well as, of course, energy,” she explained.

“We particularly work with governments to prioritize the technologies they need the most and identify the industries that can be nurtured through targeted policies and investment promotions,” Falomi added.

“The technology needs assessment can provide governments with their foundation to design innovation-oriented policies and to build, of course, needed industrial capacities and particularly attract private investment, especially foreign direct investment, which is essential for technological upgrading,” the economic affairs officer concluded.

Also participating in the panel discussion titled “Actionable Solutions to Transform Economies for Sustainable Development: The Production Transformation Policy Reviews” was Intan Hamdan-Livramento, an economist in the Department of Economics and Data Analytics at the World Intellectual Property Organization.

She highlighted two countries that have successfully developed their agricultural sectors through innovative initiatives and strategic policy interventions.

“So, Brazil in the mid-19 before the mid-1970s was an agriculture net importer. Now it is one of the largest agricultural exporters. In fact, in terms of ethanol, they are a competitive leader in this space, competing against the US and other major markets. Kenya is one of those countries that has been able to build on its local innovative capabilities and now is participating in building its own capabilities regarding new genetic techniques,” Hamdan-Livramento said.

“Both of these countries, what we notice is that the policies that were implemented, that became successful, took into consideration the innovation ecosystem: the governments, the universities, and the private sector,” she added.

Coordinated by the Ministry of Industry and Mineral Resources in partnership with the UN Industrial Development Organization under the slogan “Industrial Policies for a Sustainable Future,” the two-day forum aims to support the development of the global industrial sector by formulating effective and innovative policies that keep pace with current global challenges and trends.

The event is the first of its kind to be held outside the headquarters of UNIDO in Vienna.

RIYADH: UAE banks provided 81.2 billion dirhams ($22.1 billion) in loans and financial facilities to small and medium-sized enterprises by the end of the first half of 2024, according to official data. 

The latest figures from the Central Bank of the UAE, or CBUAE, revealed that loans to these enterprises represented 9.5 percent of the total financial support directed to the commercial and industrial sectors, which collectively received 855.7 billion dirhams in funding by June, reported the Emirates News Agency, or WAM, reported. 

These businesses are a critical component of the UAE’s economy, accounting for over 95 percent of all enterprises and employing approximately 86 percent of the private sector workforce.

The UAE government actively supports these firms through initiatives such as the National SME Program, operated by the Ministry of Economy and overseen by the UAE SME Council.

The program offers various benefits, including access to business support services such as training, technical expertise, and participation in international exhibitions. 

In addition, these companies receive financial support through preferential loans from the Emirates Development Bank, along with coordinated marketing and access to market data to assist in strategic decision-making. 

The UAE SME Council, which oversees the program, focuses on strategic planning, policy development, and fostering sustainable economic growth for the nation’s smaller businesses. 

In line with these efforts, the Abu Dhabi Department of Economic Development introduced the SME Finance Facilitator Program in November 2023, aimed at improving access to financial services for small and medium firms. 

This initiative, part of ADDED’s efforts to enhance the ecosystem for these businesses, focuses on facilitating the process of opening bank accounts and securing credit for working capital and long-term growth.

Financial facilitators assisted enterprises in understanding financial health checks and preparing necessary documentation, fostering trust and transparent communication with financial institutions. 

In 2023, Asian and Australian businesses contributed to a 550 percent year-on-year increase in the number of new small companies setting up in Dubai. 

The emirate’s international chamber reported that 104 new businesses established operations in Dubai during the 12 months leading up to December. This surge supports Dubai’s goal of doubling its economy and solidifying its position as one of the top three global cities.