Adnoc signs 30 deals to locally manufacture products worth Dh10 billion

ICV programme has driven Dh145 billion back into the UAE’s economy since 2018

Published: Thu 5 Oct 2023, 7:02 PM

Updated: Thu 5 Oct 2023, 7:04 PM

By
Issac John

Abu Dhabi-based energy giant Adnoc on Thursday said it signed 30 new agreements for local manufacturing of non-oil products worth Dh10 billion in its supply chain as it accelerates the decarbonisation of its operations.

Among the products that will be produced locally under these agreements are personal protective equipment, battery energy storage systems and uninterrupted power supply (UPS) equipment, enabling the replacement of diesel generators with more sustainable energy at Adnoc entities.

The agreements support Adnoc’s target to locally manufacture Dh70 billion worth of products in its procurement pipeline by 2027 as part of the ‘Make it in the Emirates’ initiative. The agreements will stimulate industrial growth, create more private sector jobs for UAE nationals and strengthen the resilience of the energy major’s supply chain.

The energy giant’s In-Country Value (ICV) programme provides incentives to suppliers to adopt clean technology while setting up new manufacturing facilities in the UAE as part of its Net Zero by 2045 ambition. The ICV programme has driven Dh145 billion back into the UAE’s economy since 2018.

“Adnoc’s localisation of its supply chain is consistent with our diversification strategy and the Abu Dhabi Industrial Strategy (ADIS), which is accelerating the UAE manufacturing sector’s transformation and strengthening its position as the region’s most competitive industrial hub,” said Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development.

He said these efforts have helped to increase the contribution of the non-oil sectors to 53 per cent of Abu Dhabi’s total GDP by the end of Q1 2023.

“We are continuing to roll out initiatives to develop a homegrown supply and value chain to further enhance the industrial investment ecosystem and meet investors’ needs. We encourage manufacturers and entrepreneurs to continue to capitalise on the opportunities Adnoc is creating to support the ‘Make it in the Emirates’ initiative,” added Al Zaabi.

Omar Ahmed Suwaina Al Suwaidi, undersecretary of the Ministry of Industry and Advanced Technology, said localising key supply chains is essential to strengthen and diversify the local economy. “Adnoc’s Business Partnership Forum highlighted great opportunities for suppliers to open or expand their facilities in the UAE, where they can access world-class infrastructure, a strategic business location and a variety of clean energy products, including cost-effective solar PV panels, green hydrogen products and batteries.”

Yaser Saeed Almazrouei, Adnoc executive director, people, commercial and corporate support directorate, said the firm is accelerating the decarbonisation of its operations and creating billions of dirhams in local manufacturing opportunities.