ADNOC has made a significant announcement at the Make it in the Emirates Forum in Abu Dhabi. The company has entered into new agreements with over 60 UAE-based and international companies. These agreements aim to promote local manufacturing of critical non-oil products within ADNOC’s supply chain. This development signifies a significant milestone in ADNOC’s journey toward achieving its goal. The goal, set in its procurement pipeline, aims to locally manufacture products worth AED 70 billion ($19 billion).
The recently signed agreements have brought ADNOC closer to its manufacturing target. In addition, the agreements have had a positive economic impact. They have facilitated the flow of AED 2.84 billion ($774 million) back into the UAE economy, contributing to its growth and development. Suppliers have made industrial investments as a result of these agreements, leading to this infusion of funds. These investments have facilitated the expansion or establishment of new facilities, stimulating economic growth and job creation in the country.
ADNOC has accelerated its target of AED 70 billion. The company aims to achieve this target by 2027, which is three years ahead of the previous goal of 2030. Since the launch of the Make It in the Emirates initiative, ADNOC has shown a significant increase in its direct spending with local manufacturers. This increase reflects ADNOC’s strong commitment to supporting domestic industries.
The Make It in the Emirates Forum
The impact of ADNOC’s Make It in the Emirates agreements extends beyond its own operations. Experts estimate that these agreements will contribute to 10% of the AED 172 billion ($46.9 billion) target set in the Abu Dhabi Industrial Strategy, which aims to double the size of Abu Dhabi’s manufacturing sector. Additionally, the agreements have the potential to create 21,500 jobs within the UAE by 2031, further boosting the country’s economy.
Dr. Saleh Al Hashmi, ADNOC Director of Commercial and ICV Directorate, said, “ADNOC is a critical engine for the UAE’s industrial growth and we are strengthening this role by localizing our supply chain and creating long-term domestic manufacturing opportunities for the private sector from our procurement pipeline, and ensuring its business continuity as we decarbonize our operations and work towards a lower carbon future. The agreements we have signed with the private sector supports our ongoing decarbonization 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. We encourage local and international manufacturers to take advantage of the remaining domestic manufacturing opportunities ADNOC has created and join the UAE in our industrial growth journey.”
Focus on Domestic Manufacturing
The domestic manufacturing of critical industrial products serves multiple purposes. Firstly, it enhances the resilience of ADNOC’s supply chain, enabling the company to better navigate market dynamics. Secondly, ADNOC’s focus on decarbonization and investment in lower-carbon energy solutions serves as a key priority. In this regard, promoting local manufacturing is a strategic alignment with the UAE’s Net Zero by 2050 Strategic Initiative. This strategic approach supports the country’s efforts to achieve carbon neutrality by 2050 and reduce its environmental footprint. New investors are encouraged to adopt clean technologies through incentives offered in ADNOC’s In-Country Value Program.
These yards are set to have a significant impact on the UAE by creating numerous job opportunities, driving GDP growth, and bolstering the resilience of the local supply chain across various industrial sectors.
The Make It in the Emirates Forum holds a prominent position as a premier platform for collaboration and exploration of local manufacturing and investment opportunities in the UAE. This esteemed forum is organized jointly by the Ministry of Industry and Advanced Technology (MoIAT), the Abu Dhabi Department of Economic Development (ADDED), and ADNOC.
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