Abu Dhabi National Oil Company (ADNOC) has signed agreements with 25 companies potentially worth AED 35 billion that will stimulate investment in local manufacturing of critical products in support of the diversification of the United Arab Emirates (UAE’s) industrial and manufacturing infrastructure.
The agreements set out the suppliers’ intention to manufacture 21 products in the UAE, supporting the delivery of ADNOC’s 2030 strategy, as it cements its position as one of the world’s leading low-cost, lower-carbon intensity energy producers. Leading companies who have signed agreements with ADNOC include Siemens, Halliburton, Celeros FT, Emerson, Proton R&D and Schneider Electric.
Among the products which could be manufactured in the UAE are pressure vessels; compressors; pipeline inspections gauges; specialist valves; industrial pumps; switchgears; variable speed drives and flame and gas detectors. The agreements could also see investments made in machining, reverse engineering and nondestructive testing equipment.
The announcement was made at ADNOC’s 6th annual Business Partnership Forum, held during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), at which His Excellency Omar Ahmed Suwaina Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology said the UAE’s ‘Make It In the Emirates’ program is a key part of the country’s strategy to double the contribution of the industrial sector to the UAE’s GDP to AED 300 billion by 2031.
Al Suwaidi said: “The UAE is emerging as one of the world’s major industrial and technology hubs. It has the most competitive industrial sector in the Arab world and is ranked 31st globally in UNIDO’s Competitive Industrial Performance Index. This global reputation is underpinned by our national industrial strategy, ‘Operation 300 billion’. A cornerstone of this comprehensive strategy’s roadmap is the ‘Make it in the Emirates’ campaign, which focuses on 11 priority sectors to support the growth of national industries and attract investments. However, it is not just about joining the UAE on its industrial transformation and development. It is also about accessing and benefiting from our truly unique value proposition.
“For instance, companies setting up in the UAE have access to reliable, cost-effective and sustainable energy supplies, including clean energy alternatives such as solar and hydrogen. They can also take advantage of our strategic geographical location, world-class logistics infrastructure, access to key global markets, and foreign ownership laws. One of the key competitive advantages associated with the ‘Make if in the Emirate’s’ initiative is implementing advanced technology in the local industrial sector.”
Abdulmunim Saif Al Kindy, Executive Director of People, Technology and Corporate Services for the ADNOC Group, said: “ADNOC has an exciting vision which will enable us to thrive and grow in a lower carbon future and continue to support the prosperity of the nation in the coming years and decades. These agreements, potentially worth AED 35 billion, will see significant investment flow back into the local economy through ADNOC’s In-Country Value program.
“We are taking a transparent approach in showcasing our product outlook to stimulate local market readiness as we continue to expand our In-Country Value program to support domestic manufacturing, enhance the UAE’s industrial base and create more skilled private sector employment opportunities for UAE Nationals, in line with the wise leadership’s directives.”
At the Business Partners Forum, ADNOC encouraged the private sector to capitalize on the commercial opportunities and reinforced its commitment to working with investors and suppliers, both local and international, as it expands its operations to cater for growing global energy demand.
Dr. Saleh Al Hashimi, ADNOC Commercial & In-Country Value Director, said: “We are ready to work with investors and suppliers to enable them to set up, or expand, manufacturing in the UAE and we invite local and business partners to grasp the significant opportunities this will create. We look forward to working with our partners to further support the growth and diversification of the UAE economy.”
More than 1,000 people attended the Business Partnership Forum, where ADNOC showcased its ambitious growth plans and its continued support for developing the capacity and capability of its local supply chain. ADNOC’s hugely successful ICV program is integral to these plans and has driven AED 132.5 billion ($36.1 billion) back into the UAE’s economy, since its launch in 2018.
