Abu Dhabi, UAE – ADNOC signed deals with more than 60 UAE-based and international companies to locally manufacture key non-oil products in its supply chain, local media reports said.
The deals were signed at the Make it in the Emirates Forum in Abu Dhabi, and bring ADNOC closer to its target to locally manufacture AED70 billion ($19 billion) worth of products in its procurement pipeline.
In addition, the deals enabled AED2.84 billion ($774 million) to flow back into the UAE economy through industrial investments by suppliers in expanding or establishing new facilities.
ADNOC also accelerated its AED70 billion 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.
The deals are estimated to contribute to 10% of the AED172 billion ($46.9 billion) target in the Abu Dhabi Industrial Strategy which will double the size of Abu Dhabi’s manufacturing sector.
The agreements could also enable 21,500 jobs within the UAE by 2031.
Domestic manufacturing of critical industrial products strengthens ADNOC’s supply chain and provides greater flexibility to respond to market dynamics as the company decarbonizes its operations and invests in lower-carbon energy solutions.
It also 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.
Of the agreements signed, AED20 billion ($5.45 billion) is dedicated to local fabrication yards.
These fabrication yards will create thousands of job opportunities, drive gross domestic product (GDP) growth, and enhance the resilience of the local supply chain across multiple industrial sectors in the UAE.
The Make it in the Emirates Forum is hosted by the Ministry of Industry and Advanced Technology (MoIAT) in conjunction with the Abu Dhabi Department of Economic Development (ADDED) and ADNOC.
The forum is bringing together some of largest industrial companies to explore local manufacturing and investment opportunities in the UAE.