Local manufacturing provides ADNOC greater flexibility to respond to market dynamics
ADNOC recently announced at the ‘Make it in the Emirates Forum’ in Abu Dhabi, 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 bring ADNOC closer to its target to locally manufacture AED 70bn (US$ 19bn) worth of products in its procurement pipeline which was announced at the last Make it in the Emirates forum in June 2022. In addition, the agreements have enabled AED 2.84bn (US$ 774mn) to flow back into the UAE economy through industrial investments by suppliers in expanding or establishing new facilities.
ADNOC also accelerated its AED 70bn target to 2027, ahead of the previous target of 2030. Since the launch of Make it in the Emirates, ADNOC has more than tripled its direct spend with local manufacturers.
“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,” remarked Dr. Saleh Al Hashmi, ADNOC Director, Commercial and ICV Directorate.
Of the agreements signed to date, AED 20bn (US$ 5.45bn) is dedicated to local fabrication yards. These fabrication yards will create thousands of new job opportunities, drive gross domestic product (GDP) growth, and enhance the resilience of the local supply chain across multiple industrial sectors in the UAE.
