Abu Dhabi industry major Adnoc has signed framework agreements worth Dh6 billion ($1.64 billion) for the domestic manufacturing of critical industrial equipment, in a bid to shield the UAE from global supply chain risks.
The long-term deals, forged with 12 UAE-based companies, will be for the manufacturing of cables and pressure vessels – used for safely storing fluids and gases – Adnoc said at the Make it in the Emirates summit in Abu Dhabi on Wednesday.
The companies involved are based in the UAE's principal industrial zones, including Industrial City of Abu Dhabi, Khalifa Economic Zones Abu Dhabi, Dubai Industrial Park, Jebel Ali Free Zone, and industrial areas in Sharjah and Umm Al Quwain.
The agreements are expected to create 1,300 skilled private-sector jobs, the company said.
The signings were witnessed by Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, managing director and group chief executive of Adnoc.
The agreements 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 programme”, Yaser Almazrouei, an executive director at Adnoc, said.
The UAE's In-Country Value (ICV) programme, a central plank of the country's Operation 300bn industrial strategy, redirects as much spending as possible towards UAE-made goods and services to boost the growth of domestic industries.
“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,” Mr Almazrouei added.
Adnoc has been at the forefront of boosting local manufacturing, leading with several initiatives and investments as part of the Emirates' overall economic growth strategy.
On Tuesday, it signed a $500 million deal with Emirates Global Aluminium to supply a raw material for aluminium production as part of efforts to localise the supply chain in the UAE.
Adnoc has awarded contracts worth Dh65.7 billion in the first half of the year, benefiting nearly 400 local suppliers, contractors and service providers, state news agency Wam reported on Sunday.
The contracts are in critical sectors such as drilling, logistics, operational support services, and engineering, procurement and construction.
Over the next five years, Adnoc plans to channel an additional Dh200 billion into the UAE economy through ICV. It plans to purchase Dh90 billion worth of locally manufactured products in its procurement pipeline by 2030.
The company’s ICV programme has driven Dh242 billion back into the UAE economy and enabled 17,000 Emiratis to be employed in the private sector since 2018.
Meanwhile, local spending under the ICV programme has reached Dh347 billion, Dr Al Jaber said on Monday, adding that the initiative has created more than 22,000 jobs for Emiratis.
The companies that will be manufacturing pressure vessels under the new agreements are Ados Engineering Industries, Arabian Industries, Berg Industries, Euro Mechanical and Electrical Contracting Company, Metalfab Middle East, Micoda Process Systems International, Nash Engineering, Polar Specialised Industries and United Metal Works. The cable manufacturers are Dubai Cable, Mark Cables and National Cable Industry.
