ADNOC has announced new agreements with more than 60 UAE-based and international companies to locally manufacture critical non-oil products in its supply chain
The new agreements were made at the at the Make it in the Emirates Forum in Abu Dhabi, hosted by the Ministry of Industry and Advanced Technology (MoIAT) in conjunction with the Abu Dhabi Department of Economic Development (ADDED) and ADNOC. They bring ADNOC closer to its target to locally manufacture AED70bn (US$19 bn) worth of products in its procurement pipeline by 2027. In addition, the agreements have enabled AED2.84 bn (US$774mn) to flow back into the UAE economy through industrial investments by suppliers in expanding or establishing new facilities.
ADNOC’s Make it in the Emirates agreements are estimated to contribute to 10% of the AED172 billion (US$46.9bn) target in the Abu Dhabi Industrial Strategy which will double the size of Abu Dhabi’s manufacturing sector. Domestic manufacturing of critical industrial products also supports the UAE Net Zero by 2050 Strategic Initiative as new investors are encouraged to adopt clean technologies while setting up in the UAE through incentives in ADNOC’s In-Country Value Program.
Dr Saleh Al Hashmi, ADNOC director, Commercial and ICV Directorate, said, “ADNOC is a critical engine for the UAE’s industrial growth and we are strengthening this role by localising our supply chain and creating long-term domestic manufacturing opportunities for the private sector from our procurement pipeline. The agreements we have signed with the private sector supports our ongoing decarbonisation efforts and will drive more sustainable value for ADNOC, as well as enhance the resilience of our supply chain and the UAE’s industrial base.”
Of the agreements signed to date, AED20bn (US$5.45bn) is dedicated to local fabrication yards, which will create thousands of new job opportunities. Companies including NPCC, Ali & Sons Holding, Eversendai Offshore, AIC, Lamprell Energy, Adyard, Fabtech International, and Drydocks Dubai have secured 24 new agreements for steel fabrication works related to EPC projects.
