ADNOC’s ICV Initiative Spurs Growth In UAE’s Industrial Sector And Employment

ADNOC has facilitated the creation of eight industrial centres in the UAE and internationally within a year. These centres, established under commercial agreements through ADNOC’s In-Country Value (ICV) programme, have generated over AED700 million and created 800 jobs for UAE citizens. This initiative aligns with ADNOC's goal to locally manufacture AED90 billion worth of products by 2030.

The Ministry of Industry and Advanced Technology (MoIAT) is rolling out initiatives to achieve the National Strategy for Industry and Advanced Technology. Omar Al Suwaidi, Undersecretary of MoIAT, highlighted the success of the National ICV Programme. The programme aims to redirect procurement to benefit the national economy and has expanded its membership to include 31 federal and local government agencies and major national companies.

Al Suwaidi noted that investments from companies certified under the National ICV Programme reached AED205 billion by H1 2024. During this period, national spending among entities implementing the programme increased by 66 percent compared to H1 2023, directing more than AED48 billion into the national economy.

Rashed Abdulkarim Al Blooshi, Undersecretary of the Abu Dhabi Department of Economic Development (ADDED), praised ADNOC’s ICV programme for creating jobs for UAE talents and attracting foreign direct investments (FDIs). He stated that these efforts align with ‘Operation 300bn’, the UAE’s industrial strategy, and the UAE’s Net Zero 2050 Strategy.

Al Blooshi added that ADIS initiatives are driving growth in Abu Dhabi's manufacturing sector. In Q1-2024, the industrial GDP reached AED24.8 billion, contributing 8.7 percent to Abu Dhabi’s GDP and 16 percent of its non-oil economy.

Expanding Industrial Facilities

Dr. Saleh Al Hashimi, Director of ADNOC’s Commercial and ICV Directorate, emphasized ADNOC's commitment to leveraging its procurement pipeline through its ICV programme. The expanded scope aims to create more private sector jobs for UAE nationals, enable small and medium enterprises, and attract new manufacturers.

The agreements signed so far have enabled several manufacturing facilities in the UAE. Companies like Tenaris, Ingenia Polymers, Technip FMC, Specialist Services Holding, United Clad Technology, MT Group, Yokogawa, and DNV Inspection have set up or expanded their facilities under these agreements.

Driving Economic Self-Sufficiency

A joint venture between Abu Dhabi Oilfield Services Company (ADOS) and Sparrows established a new offshore pedestal crane manufacturing facility in the region. This facility is among several new industrial centres contributing to economic self-sufficiency by reducing reliance on imports.

ADNOC’s expanded ICV programme aims to drive AED178 billion back into the UAE’s economy by 2028. It also seeks to create 13,500 private sector job opportunities for UAE nationals by then while enhancing local manufacturing opportunities.

Long-Term Impact

Since its inception in 2018, ADNOC’s ICV programme has reinvested AED187 billion into the UAE’s economy. This initiative has created thousands of jobs, particularly for Emiratis in the private sector. It also aims to reduce dependency on imports by establishing local manufacturing capabilities labelled "Made in the UAE".

The Ministry of Industry and Advanced Technology will continue collaborating with partners to enhance the role of the industrial sector. This collaboration supports ongoing efforts to boost national content through initiatives like ‘Make it in the Emirates’.

With inputs from WAM