ADNOC advances supply chain localization with $2.7 Billion deals

With Chief Legal Counsel, Salem Mohammed Al Darei (pictured) leading its legal department, Abu Dhabi National Oil Company (ADNOC) has taken significant steps towards localizing its supply chain and achieving its goal of producing AED70 billion ($19 billion) worth of industrial products within the UAE by 2027. At its 7th annual Business Partnership Forum during ADIPEC, ADNOC announced agreements with 30 companies to locally manufacture essential non-oil products. The potential value of these agreements is up to AED10 billion ($2.7 billion). 

This initiative is in line with ADNOC’s commitment to decarbonize its operations and create more job opportunities for UAE Nationals. It also reinforces the resilience of ADNOC’s supply chain. 

His Excellency Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, commended ADNOC’s efforts, highlighting how they align with Abu Dhabi’s diversification strategy and the Abu Dhabi Industrial Strategy (ADIS). These initiatives are propelling the UAE’s manufacturing sector’s transformation and bolstering its position as a highly competitive industrial hub. 

ADNOC’s push for supply chain localization is a vital part of its contribution to the UAE’s ambitious economic diversification plans. The company is making it easier for suppliers to establish or expand their facilities in the UAE, offering world-class infrastructure and a strategic business environment. 

Yaser Saeed Almazrouei, ADNOC Executive Director, expressed the importance of creating local manufacturing opportunities for the private sector. These agreements will not only strengthen the UAE’s industrial base but also contribute significantly to the economy while generating high-skilled job opportunities for UAE Nationals. 

The localized production will encompass various products, including Personal Protective Equipment for enhanced safety, battery energy storage systems, and Uninterrupted Power Supply equipment, facilitating the transition to more sustainable energy sources at ADNOC facilities. 

ADNOC’s In-Country Value (ICV) program plays a crucial role in encouraging clean technology adoption and the establishment of new manufacturing facilities within the UAE. The program, aligned with ADNOC’s Net Zero by 2045 ambition, has already injected AED145 billion ($39.5 billion) into the UAE’s economy since 2018.