Adnoc Inks Dh10 Billion Deals to Boost Local Manufacturing and Decarbonization Efforts
Abu Dhabi National Oil Company (Adnoc) has taken a significant stride towards bolstering the UAE’s non-oil industrial sector, with the signing of 30 agreements totaling Dh10 billion. These agreements pave the way for the local production of various non-oil products, including personal protective equipment, battery energy storage systems, and uninterrupted power supply equipment.
The move is aligned with Adnoc’s ambitious plan to localize Dh70 billion worth of products in its procurement pipeline by 2027, as part of the ‘Make it in the Emirates’ initiative. Not only will this initiative stimulate industrial growth, but it will also create a surge in private sector jobs for UAE nationals, fortifying Adnoc’s supply chain.
One of the core objectives of Adnoc’s In-Country Value (ICV) program is to incentivize suppliers to adopt clean technology and establish new manufacturing facilities within the UAE. This initiative is a critical component of Adnoc’s broader goal to achieve net-zero carbon emissions by 2045. Since its inception in 2018, the ICV program has injected an impressive Dh145 billion back into the UAE’s economy.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, commended Adnoc’s strides towards diversification, citing its alignment with the Abu Dhabi Industrial Strategy. The strategy aims to accelerate the transformation of the UAE’s manufacturing sector, solidifying its position as a regional industrial powerhouse.
The concerted efforts have yielded substantial results, as non-oil sectors now account for 53 per cent of Abu Dhabi’s total GDP by the close of Q1 2023. Al Zaabi emphasized the need to continue building a robust, homegrown supply chain, calling on manufacturers and entrepreneurs to seize the opportunities created by Adnoc.
Omar Ahmed Suwaina Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology, stressed the importance of localizing key supply chains in fortifying and diversifying the local economy. He underscored the strategic benefits available to suppliers, including access to state-of-the-art infrastructure, a strategic business hub, and an array of clean energy solutions.
Yaser Saeed Almazrouei, Adnoc Executive Director, lauded the company’s progress in advancing the decarbonization of its operations while concurrently unlocking substantial opportunities for local manufacturing. The agreements mark a significant milestone not only in Adnoc’s journey towards sustainability but also in the broader landscape of the UAE’s industrial development.
