Adnoc signs food catering agreements worth $272m

More than 50% of the value from the four contracts will flow back into the UAE economy

Adnoc headquarters. Last month, it signed agreements worth up to Dh35 billion to stimulate investment in the local manufacturing of critical products. Victor Besa / The National
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Adnoc has signed contracts worth more than Dh1 billion ($272.29 million) with four Abu Dhabi companies to provide food catering services to all Adnoc Group companies until 2027.

The agreements were signed with Royal Catering, Apex National Catering, National Corporation for Tourism and Hotels and Sodexo Kelvin, the state-owned energy company said in a statement on Tuesday.

More than 50 per cent of the value from the four contracts will flow back into the UAE economy, as part of Adnoc’s In-Country Value (ICV) programme, Adnoc said.

“We are delighted to sign new agreements with four leading local companies, reinforcing our commitment to use domestic suppliers and contractors and ensuring the growth, development, and diversification of local industry,” said Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc's managing director and group chief executive.

“By working with local companies and encouraging the use of more made-in-the-UAE products, we will also support the growth of the UAE food industry, a critical enabler of our national food security strategy.”

Last month, Adnoc signed agreements worth up to Dh35 billion that will stimulate investment in the local manufacturing of critical products in support of the diversification of the UAE’s industrial and manufacturing sector.

Among the products which could be made in the UAE are pressure vessels, compressors, pipeline inspection gauges, specialist valves, industrial pumps, switchgears, variable speed drives and flame and gas detectors, Adnoc said at the time.

The UAE last year launched its industrial strategy 'Operation 300bn' to position it as a global industrial powerhouse by 2031. The 10-year comprehensive road map focuses on increasing the industrial sector's contribution to the country's gross domestic product from Dh133 billion last year to Dh300 billion in 2031.

The strategy focuses on boosting production in 11 priority sectors, supporting the growth of national industries, attracting foreign investment, modernising legislation and ensuring the availability of dedicated financing for local industrial companies.

Last month, global technology and software company Emerson teamed up with Adnoc to explore the production of equipment and devices for the UAE’s oil and gas industry.

The agreement covers existing and potential manufacturing capacities for valves as well as programmable logic controllers and machine condition monitoring, all of which provide a deep insight into the health and status of the equipment.

Adnoc’s board has endorsed plans to bring forward the company’s 5 million barrels per day of oil production capacity expansion to 2027, from the previous target of 2030, as part of an accelerated growth strategy.

Updated: December 06, 2022, 3:44 PM
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