The UAE's ADNOC has signed new agreements with 30 companies for local manufacturing of a wide range of basic industrial products in supply chains that contribute to accelerating its efforts to reduce emissions.
This came during the seventh ADNOC Business Partners Forum, which the company hosted on Thursday, as part of the ADIPEC 2023 exhibition and conference, the largest global gathering for the energy sector, which is currently being held in Abu Dhabi.
The UAE's ADNOC said in a statement that the agreements confirm the companies' intention to manufacture products locally worth up to 10 billion dirhams (equivalent to $2.7 billion) within the supply chain of ADNOC's operations.
The agreements also support ADNOC's goal of purchasing products that can be manufactured locally worth 70 billion dirhams ($19 billion) in the company's purchasing plans by 2027, as part of its efforts to support the Make in the UAE initiative.
The agreements contribute to stimulating industrial growth, creating more job opportunities for citizens in the private sector, and enhancing the flexibility of the supply chain for ADNOC’s business and activities.
On this occasion, Ahmed Al Zaabi, Chairman of the Department of Economic Development - Abu Dhabi, said: The concept of the growing Falcon Economy for the Emirate of Abu Dhabi has proven its ability to overcome global challenges by achieving strong growth rates in various sectors, and providing a business-friendly economic environment that continues to attract investors from various countries of the world to the sector. Industrial in Abu Dhabi.
He added: ADNOC's investment in localizing the supply chain of the company's business and activities is in line with our economic diversification strategy and Abu Dhabi's industrial strategy, which contributes to accelerating the qualitative shift in the industrial sector in the Emirates, and consolidating the country's position as the most competitive industrial center in the region. Through all these efforts, the contribution of non-oil sectors to the gross domestic product of the Emirate of Abu Dhabi rose to 53 percent by the end of the first quarter of 2023. We continue to launch initiatives to develop a local supply and value chain to enhance the industrial investment system and meet the needs of investors. We also encourage industrial companies and entrepreneurs to continue taking advantage of the opportunities provided by ADNOC to support the “Make in the UAE” initiative.
For his part, Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology, said: The localization of key supply chains is an important factor to ensure the continuity of efforts aimed at strengthening and diversifying the local economy. The ADNOC Business Partners Forum reviewed many important opportunities available to suppliers to open new industrial facilities or expand existing ones in the Emirates, where they can benefit from the unique advantages provided by the country, which include world-class infrastructure facilities, the strategic geographical location of the business, and clean energy products. Such as low-cost solar panels, green hydrogen products and batteries.
For his part, Yasser Al Mazrouei, CEO of ADNOC’s Human Resources, Institutional and Commercial Support Department, said: ADNOC is a major driver of industrial growth in the UAE, and aims to enhance its role and contribution by creating more local manufacturing opportunities for the private sector to meet its needs for industrial products as part of its ongoing endeavors. To contribute to building a low-emissions future. The agreements signed by ADNOC to purchase products that can be manufactured locally contribute to enhancing the capabilities of the local industry, redirecting great value to the local economy, and creating more job opportunities in the private sector for qualified UAE citizens. As the company works to accelerate efforts to reduce the emissions of its operations, it is also working to create more local manufacturing opportunities for products worth billions of dirhams, and ADNOC takes this opportunity to call on the private sector to benefit from these opportunities and join it in its efforts to enhance the growth of the industrial sector.
Among the products that ADNOC will benefit from manufacturing locally under these agreements are:
- Personal protective equipment that will enhance the safety of operations across the group's various companies
- Energy storage battery systems
- Uninterruptible power supply units that are manufactured in the UAE, and the company will use them instead of diesel power generators to provide a sustainable supply of energy to the operations of ADNOC Onshore, ADNOC Offshore, and ADNOC Drilling.
More than 1,000 people participated in the ADNOC Business Partners Forum, during which the company reviewed many local manufacturing opportunities worth billions of dirhams for a group of basic industrial products within the company’s expected purchases for the next two years.
Local manufacturing of basic industrial products contributes to enhancing the flexibility of the supply chain for ADNOC's business and activities, and also supports its ability to respond more quickly to market changes as it seeks to reduce the emissions of its operations and increase its investments in low-carbon energy solutions.
ADNOC's program to enhance local added value contributes to supporting the UAE's strategic initiative to achieve climate neutrality by 2050 through the incentives provided by the program to encourage suppliers to use clean technologies in establishing their projects within the Emirates.
Since its launch in 2018, ADNOC's In-Country Value (ICV) program has contributed to redirecting 145 billion dirhams (about $39.5 billion) into the UAE economy.
