ADNOC raises local manufacturing target to Dhs90bn by 2030

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Abu Dhabi National Oil Company (ADNOC) announced at the ‘Make it in the Emirates’ forum that it has increased its local manufacturing target for critical industrial products to Dhs90bn ($24.5bn) by 2030.

This move aims to boost the UAE’s economic diversification, strengthen the industrial sector, and expand local manufacturing capabilities.

The new target is part of ADNOC’s expanded in-country value (ICV) programme, which aims to drive an additional Dhs178bn ($49bn) back into the UAE economy by 2028.

ADNOC had previously set a 2027 target for local manufacturing worth Dhs70bn ($19bn), which was met ahead of schedule following the award of two contracts for metal pipes and valves worth Dhs16.8bn ($4.6bn) to local manufacturers.

Dr  Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC MD and group CEO, stated, ” Since the launch of the company’s ICV programme in 2018, we have successfully collaborated with strategic partners to transform this initiative into an integrated national economic program to boost the UAE’s economic development.”

Dr Al Jaber added, “Having successfully delivered on our target to create Dhs70bn in local manufacturing opportunities ahead of schedule, ADNOC is now boosting its local manufacturing target to Dhs9bn to strengthen the UAE’s industrial sector. This expanded initiative will support the UAE’s economic diversification, attract local and international investors, and provide high-skilled private sector jobs for UAE Nationals. Additionally, it will stimulate entrepreneurial growth and drive sustainability in ADNOC’s supply chain. We invite local and international manufacturers to take advantage of our ICV programme and participate in the UAE’s industrial growth journey.”

The recent contracts include Dhs8.8bn ($2.4bn) for metal pipes awarded to PM Piping Petroleum Equipment, Ajmal Steel, and the Emirati-owned Al Gharbia Pipe Company, and Dhs8bn ($2.2bn) for mechanical valves to Samamat, Camtech Manufacturing, Tisco Valves Manufacturing, PTPA, MT Valves, and Industries.

ADNOC’s expanded ICV programme will also provide a dedicated accelerator program for micro, small, and medium enterprises (MSMEs) to enable Emirati businesses to engage with its supply chain.

The programme will introduce incentives to embed sustainability in local supply chains by encouraging the adoption of clean technologies and best-in-class environmental, social, and governance (ESG) practices.

Additionally, it will accelerate the adoption of artificial intelligence (AI) in ADNOC’s supply chain.

In numbers: ADNOC spend to boost local businesses

Since the launch of the ‘Make it in the Emirates’ initiative in 2021, ADNOC has more than tripled its direct spend with local manufacturers for industrial products within its procurement pipeline.

The company has driven Dhs187bn ($51bn) back into the UAE economy since 2018 through its ICV programme.

This programme has also created 11,500 job opportunities for Emirati talents in the private sector in collaboration with strategic partners, including the NAFIS programme.

Additionally, contracts worth Dhs22.4bn ($6.1bn) were awarded to Emirati-owned small and medium enterprises (SMEs) across 600 companies.

In other news, in line with its international growth strategy, ADNOC has announced the acquisition of a 10 per cent interest in the Area 4 concession of the Rovuma basin in Mozambique, from Portuguese energy corporation Galp.

The investment marks its first venture into the African country.

Read: ADNOC to acquire 10% equity stake in key LNG development in Mozambique