ADNOC Signs AED 6 Billion Framework Agreements To Boost UAE Industrial Equipment Manufacturing

ADNOC has entered into framework agreements worth AED6 billion ($1.64 billion) with 12 UAE-based firms to produce essential industrial equipment domestically. This move supports the 'Make it in the Emirates' initiative. The agreements focus on manufacturing cables and pressure vessels, potentially creating up to 1,300 skilled jobs in the private sector. This will ensure equipment availability across ADNOC’s value chain, reduce delivery times, and mitigate global supply chain risks.

The agreements are expected to stimulate investment in industrial zones across Abu Dhabi, Dubai, and the Northern Emirates. This aligns with ADNOC's In-Country Value (ICV) programme, which aims to enhance UAE manufacturing capacity and strengthen the industrial base. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, witnessed the signing at the ‘Make it in the Emirates’ forum in Abu Dhabi.

ADNOC Executive Director Yaser Saeed Almazrouei stated, "These frameworks agreements to manufacture pressure vessels and cables in the UAE highlight ADNOC’s success in strengthening the resilience of our supply chain, expanding the UAE’s manufacturing base and creating jobs in the private sector through our In-Country Value program. We are providing greater visibility into the products we intend to purchase locally and we encourage businesses to capitalise on ADNOC’s huge pipeline of local manufacturing opportunities through the Make it with ADNOC app to enhance business continuity and create long-term sustainable value."

The companies involved are located in key industrial zones such as Industrial City of Abu Dhabi (ICAD), Khalifa Economic Zones Abu Dhabi (KEZAD), Dubai Industrial Park, Jebel Ali Free Zone (JAFZA), and areas in Sharjah and Umm Al Quwain. This distribution underscores ADNOC's dedication to balanced industrial growth throughout the UAE, ensuring localisation benefits are widespread.

Nine companies will manufacture 10 types of pressure vessels: ADOS Engineering Industries, Arabian Industries LLC, Berg Industries LLC, Euro Mechanical & Electrical Contracting Company LLC, METALFAB Middle East FZ L.L.C, Micoda Process Systems International Company, NASH Engineering FZCO, Polar Specialized Industries (PSI), and United Metal Works Est. Factory Abu Dhabi. Three companies will produce four types of cables: Dubai Cable Co. (PVT) Ltd, Mark Cables, and National Cable Industry.

Future Procurement Plans

By 2030, ADNOC plans to procure AED90 billion ($24.5 billion) worth of locally manufactured products. Since 2018, its ICV programme has reinvested AED242 billion ($65.9 billion) into the UAE economy and facilitated employment for 17,000 Emiratis in the private sector. Over the next five years, ADNOC aims to inject AED200 billion ($54.5 billion) into the national economy through its ICV programme.

These initiatives reflect ADNOC's strategic approach to fostering a robust local manufacturing ecosystem while supporting economic growth across various sectors within the UAE.

With inputs from WAM