ADNOC Sets AED90 Billion Local Manufacturing Goal To Fuel UAE's Economic Diversification

ADNOC has announced an increase in its local manufacturing target for critical industrial products to AED90 billion (US$24.5 billion) by 2030. This announcement was made at the "Make it in the Emirates" forum. The initiative aims to boost 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) programme, which aims to drive an additional AED178 billion (US$49 billion) back into the UAE economy by 2028. Previously, ADNOC had set a 2027 target for local manufacturing of AED70 billion (US$19 billion), which was achieved ahead of schedule.

Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, stated, "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."

ADNOC awarded two contracts worth AED16.8 billion (US$4.6 billion) to local manufacturers for metal pipes and valves. These contracts include AED8.8 billion (US$2.4 billion) for metal pipes to PM Piping Petroleum Equipment, Ajmal Steel, and Al Gharbia Pipe Company; and AED8 billion (US$2.2 billion) for mechanical valves to Samamat, Camtech Manufacturing, Tisco Valves Manufacturing, PTPA, MT Valves and Industries.

Support for MSMEs

The expanded ICV programme will provide a dedicated micro, small, and medium enterprises (MSMEs) accelerator programme. This will enable Emirati businesses and local MSMEs to conduct business across ADNOC’s supply chain. The programme 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.

Technological Integration

The initiative will accelerate the adoption of artificial intelligence (AI) in ADNOC’s supply chain. It aims to enable 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.

Economic Impact

Since 2018, ADNOC has driven AED187 billion (US$51 billion) back into the UAE economy through its ICV programme. The programme has also created 11,500 job opportunities for Emirati talents in the private sector in collaboration with strategic partners such as the NAFIS programme.

Support for SMEs

Through the ICV programme, contracts worth AED22.4 billion (US$6.1 billion) were awarded to Emirati-owned small and medium enterprises (SMEs), across 600 companies. This initiative is expected to further stimulate entrepreneurial growth and drive sustainability in ADNOC’s supply chain.

ADNOC invites local and international manufacturers to take advantage of its ICV programme and participate in the UAE’s industrial growth journey.

With inputs from WAM