ADNOC Boosts Local Manufacturing Target to AED90 Billion by 2030 to Propel UAE’s Economic Diversification
Previous 2027 local manufacturing target of AED70 billion worth of products in ADNOC’s procurement pipeline delivered ahead of schedule
ADNOC expands its ICV program to drive AED178 billion back into the UAE’s economy by 2028
Expanded ICV program underpins ADNOC’s strategy to enhance economic self-sufficiency and catalyze further opportunities for manufacturers
Abu Dhabi, UAE – May 27, 2024: ADNOC announced today at the ‘Make it in the Emirates’ forum an increase in its local manufacturing target for critical industrial products in its procurement pipeline to AED90 billion ($24.5 billion) by 2030 to propel 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) program which aims to drive an additional AED178 billion ($49 billion) back into the UAE economy by 2028. ADNOC’s previous 2027 target for local manufacturing of AED70 billion ($19 billion) worth of products was delivered ahead of schedule following the award of two contracts for metal pipes and valves worth AED16.8 billion ($4.6 billion) to local manufacturers.
His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, said: "In line with the wise directives of the UAE leadership, ADNOC continues to play a pivotal role in enabling economic, social, and industrial growth in the UAE. Since the launch of ADNOC's In-Country Value program 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.
“Having successfully delivered on our target to create AED70 billion in local manufacturing opportunities ahead of schedule, ADNOC is now boosting its local manufacturing target to AED90 billion 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 program and participate in the UAE’s industrial growth journey.”
The contracts include AED8.8 billion ($2.4 billion) for metal pipes to PM Piping Petroleum Equipment, Ajmal Steel, and the Emirati-owned Al Gharbia Pipe Company; and AED8 billion ($2.2 billion) for mechanical valves to Samamat, Camtech Manufacturing, Tisco Valves Manufacturing, PTPA, MT Valves and Industries.
ADNOC’s expanded ICV program will provide a dedicated micro, small and medium enterprises (MSMEs) accelerator program to enable Emirati businesses and local mSMEs to conduct business across ADNOC’s supply chain. The program will also introduce incentives to embed sustainability in local supply chains by encouraging investors to adopt clean technologies and best-in-class environmental, social, and governance (ESG) practices. It will accelerate the adoption of artificial intelligence (AI) in ADNOC’s supply chain and enable micro, small and medium enterprises (MSMEs) to participate in strengthening the resilience of the UAE’s industrial base.
Since the launch of ‘Make it in the Emirates’ in 2021, ADNOC has more than tripled its direct spend with local manufacturers for industrial products within its procurement pipeline. The company has driven AED187 billion ($51 billion) back into the UAE economy since 2018, through its ICV program. ADNOC’s ICV program has also created 11,500 job opportunities for Emirati talents in the private sector in collaboration with strategic partners such as the NAFIS program. Through the program, contracts worth AED22.4 billion ($6.1 billion) were awarded to Emirati-owned small and medium enterprises (SMEs), across 600 companies.
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