ADNOC inks deals worth $4.63bn to grow UAE’s manufacturing sector
The firm said it is continuing to encourage the private sector to capitalise on the commercial opportunities for domestic manufacturing across its value chain
Deals worth US $4.63bn have been signed by Abu Dhabi National Oil Company (ADNOC) with 23 UAE and international companies. The deals aim to boost local manufacturing opportunities across a wide range of critical industrial products.
The agreements outline the intention of companies to manufacture industrial products in the UAE, supporting the ‘Make it in the Emirates’ initiative and the ‘Abu Dhabi Industrial Strategy’. The products are said to be part of the $19bn worth of products in ADNOC’s procurement pipeline that the company identified for domestic manufacturing in July 2022.
ADNOC said that it is continuing to encourage the private sector to capitalise on the commercial opportunities for domestic manufacturing across its value chain, through its In-Country Value (ICV) programme, as it expands and decarbonises its operations.
In early July 2022, Abu Dhabi launched a $2.72bn drive to expand the manufacturing sector to over $46bn and, in early November 2022, Baker Hughes and ADNOC said they would develop sustainable energy solutions.
Dr Saleh Al Hashimi, ADNOC Director (Commercial & In-Country Value Directorate) said the group is creating long-term domestic manufacturing opportunities from its procurement pipeline to enhance the UAE’s industrial base.
He added, “We are strengthening the resilience of the group’s supply chains as we make today’s energy cleaner and invest in the clean energies of the future. These agreements reinforce our role as a critical engine for the UAE’s industrial growth, and they offer significant potential to further increase our GDP contributions, stimulate economic diversification and create more skilled job opportunities for UAE Nationals. We look forward to working with these companies to deliver on these important agreements and drive more sustainable value to the UAE.”
Last year, ADNOC signed agreements for local manufacturing commitments worth over $6.8bn with UAE and international companies. The company continues to take a transparent approach to showcasing its product outlook as part of its ICV programe, it concluded.
In mid January 2023, ADNOC and thyssenkrupp said they would develop large-scale ammonia projects in partnership.
