Land Rebate Incentive Program (LRIP)

The Land Rebate Incentive Program (LRIP) is one of the Abu Dhabi Government’s Industrial strategy projects. The LRIP seeks to provide a conducive environment to industrial investors through low rent rates and long-term contracts for new industrial investments. LRIP provides a favorable and enabling investment environment through a long-term incentives package addressing the challenges of industrial land’s high price in terms of rent.

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    Objective of LRIP

    1. Attract new FDIs & DDIs.
    2. Develop targeted subsectors.
    3. Increase Industrial land Occupancy.
    4. Enhancing the economic impact of the industrial sector in the Emirate of Abu Dhabi.
    5. Boost the manufacturing entity productivity in the Emirate of Abu Dhabi by encouraging technological transformation.

    Targeted sectors

    Any new entity participating in the LRIP program should be part of the targeted sectors defined in the Abu Dhabi Industrial Strategy 2031 (ADIS31). All such companies are required to be manufacturing companies in any of the following sectors:

    Electrical
    Electronics
    Machineries
    Transportation
    Chemical
    Pharmaceutical
    Food Processing

     

    Criteria for LRIP

    The criteria for LRIP are different for entry-level and yearly control levels. At the entry-level, the requirements are economic impact, Spending Abu Dhabi logistics and Industry readiness. On yearly control measures on manufacturing entities for LRIP, the below criteria are considered:

    1. Economic Impact
      • Investment in Abu Dhabi.
      • Emiratization
      • Emiratization No’s
      • Skilled Employment.
      • Supply Chain.
    2. Productivity
    3. Spending on Abu Dhabi Labor Housing

     

     

    Frequently Asked Questions

    1. What is Land Rebate Incentive Program?

      The Land Rent incentive program is one of Abu Dhabi Industrial strategy projects that seeks to provide a conducive environment to industrial investors through low rent rates and long-term contracts for new industrial investments that are eligible to register in this Program. The Land Rent Incentive Program aims to promote Abu Dhabi as a favorable destination for regional industrial investments.

    2. Does the Program cover all other sectors?

      The Industrial Development Bureau established the Program to cover targeted Industrial sectors in Abu Dhabi.

    3. What are the targeted sectors included in this Program?

      The Program targets new manufacturers in one of the ADIS 31 Targeted sectors. These are Electrical Manufacturing, Electronics Manufacturing, Machineries Manufacturing, Transportation Manufacturing, Chemical Manufacturing, Pharmaceuticals and Food Processing.

    4. Who is eligible to apply for Land Rebate Incentive Program (LRIP)?

      All new entities (under construction or within six months of issuing production licenses) have Industrial Licenses issued by the Abu Dhabi Department of Economic Development.

    5. If my production license was issued in less than one year, can I apply to the Program?

      Yes, the Program is focused on new entities in the targeted sectors. Therefore, the eligibility is set towards new entities, and the cut-off is for entities within six months of production. All entities in prior stages to this, including under-construction, can apply for LRIP.

    6. Are Free Zone investors eligible to benefit from this initiative?

      Free zone entities are not included in the Program and therefore are not eligible.

    7. What are the benefits of the Program?

      Manufacturing Entities in targeted sectors could potentially qualify for rebates of their rental cost based on a set of criteria reflecting their economic value and their cost-to-serve.

    8. Once I join the LRIP program, how long can I benefit from the incentive, and is this fixed across the period?

      The LRIP program is a 15-year program incentivizing new entrants in the targeted sectors. However, to ensure benefits across the 15 years, the manufacturing entities need to score on the yearly monitoring criteria and accordingly will get the rebate according to the score. Entities that score below 50% will not be entitled to any rebate in any given year but can benefit in subsequent years once they get the required score.

    9. What is the role of HLB HAMT in the LRIP Program?

      The LRIP certification is done by an independent third party, known as Certifying Body, selected and empaneled under the Program by ADDED. HLB HAMT is one of the certifying bodies empaneled by ADDED.

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