Adnoc has signed agreements with more than 60 UAE and international companies to manufacture critical non-oil products in its supply chain in the Emirates as part of its localisation drive.
The energy company also expects to meet its target to domestically manufacture Dh70 billion ($19 billion) worth of products in its procurement pipeline by 2027, from a previous goal of 2030, it said in a statement on Wednesday.
The agreements, which were announced at the Make it in the Emirates forum in Abu Dhabi, have enabled Dh2.84 billion to flow back into the UAE economy through industrial investments by suppliers in expanding or establishing new facilities, Adnoc said.
The deals are estimated to contribute to 10 per cent of the Dh172 billion target in the Abu Dhabi Industrial Strategy, which will double the size of the emirate's manufacturing sector, Adnoc said.
The agreements could also enable 21,500 jobs within the UAE by 2031, it added.
"Adnoc is a critical engine for the UAE’s industrial growth and we are strengthening this role by localising our supply chain and creating long-term domestic manufacturing opportunities for the private sector from our procurement pipeline," said Saleh Al Hashmi, Adnoc director, commercial and in-country value directorate.
"The agreements ... will drive more sustainable value for Adnoc as well as enhance the resilience of our supply chain and the UAE’s industrial base."
In 2021, the UAE launched its industrial strategy Operation 300bn to position itself as a global industrial centre by 2031.
The 10-year comprehensive road map focuses on increasing the industrial sector's contribution to gross domestic product to Dh300 billion in 2031, from Dh133 billion in 2021.
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.
In February, Adnoc signed agreements worth Dh17 billion with 23 local and international companies to boost the UAE’s manufacturing sector.
That followed from November, when Adnoc signed agreements worth up to Dh35 billion with 25 companies, including Siemens, Halliburton and Schneider Electric.
Of the agreements signed to date, Dh20 billion is dedicated to local fabrication yards, where components and materials for projects are assembled, Adnoc said on Wednesday.
"These fabrication yards will create thousands of new job opportunities, drive gross domestic product growth and enhance the resilience of the local supply chain across multiple industrial sectors in the UAE," it said.
The UAE has already managed to increase the industrial sector’s contribution to national GDP to Dh182 billion, a 38 per cent increase from Dh132 billion in 2020, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and Cop28 President-designate, said in his speech at the Make it in the Emirates forum on Wednesday.
This year, the UAE plans to “increase the value of purchase agreements for local manufacturers and industrial investments by more than Dh10 billion, taking the total value of products targeted for localisation to Dh120 billion”, Dr Al Jaber said.
