ADNOC Inks Multi-Agency Agreement to Support Local Manufacturing

Abu Dhabi National Oil Co. (ADNOC) has signed a collaboration agreement with government and industry stakeholders in the United Arab Emirates to integrate local small businesses into the state-owned company’s supply chain.

The agreement was signed at Abu Dhabi Business Week with the Ministry of Industry and Advanced Technology (MOIAT), the Abu Dhabi Department of Economic Development, the Abu Dhabi Investment Office and the Abu Dhabi Chamber of Commerce and Industry (ADDCI).

Part of ADNOC’s In-Country Value (ICV) program, the agreement “is designed to strengthen the UAE’s industrial ecosystem and explore opportunities to support local manufacturers by leveraging key incentives, ensuring alignment with national strategic objectives, and fostering compliance with UAE regulations”, ADNOC said in an online statement.

“A core focus of the agreement is empowering small and medium-sized enterprises by integrating them into ADNOC’s supply chain, fostering innovation, enhancing competitiveness, and contributing to the UAE’s broader economic diversification goals”.

Earlier ADNOC’s board approved a target to “drive AED200 billion ($54.5 billion) into the UAE economy over the next five years through its ICV program”, as announced by ADNOC November 27. The ICV program has delivered AED55 billion ($15 billion) to the UAE economy this year according to ADNOC.

Launched 2018 by ADNOC and later adopted by the government, the ICV program aims to enable the local industry to meet the needs of the oil and gas supply chain, help diversify the UAE economy by promoting local goods and services and develop the local talent base.

MOIAT undersecretary Omar Al Suwaidi said of the multi-agency agreement, “Under this strategic cooperation, the ministry will continue supporting manufacturers to meet the requirements of ADNOC’s procurement teams to help local businesses secure manufacturing contracts”.

“This cooperation will ultimately create new investment opportunities while enhancing supply chains in vital areas such as energy”, Al Suwaidi added. “The ministry remains focused on promoting the adoption of advanced technology, encouraging innovation, supporting SMEs to grow, and increasing national productivity through introducing incentives and enablers”.

ADCCI vice chair Shamis Ali Al Dhaheri said, “As the voice of the private sector, ADCCI’s efforts are aligned with the achieving the objectives of ‘Operation 300bn’, the UAE’s industrial strategy and the Abu Dhabi Industrial Strategy, which focuses on supporting SMEs, Emiratization, employing advanced technologies, and increasing non-oil exports by capitalizing on ICV and other programs on locally manufactured goods and supply chains”.

At the recently concluded ADIPEC exhibit and conference in the UAE capital, ADNOC issued contracts worth a combined AED 720 million to local manufacturers.

“The contract awards to 11 companies were enabled by ADNOC’s In-Country Value (ICV) program and support the Make it in the Emirates initiative”, it said in a press release November 5. Make It in the Emirates promotes investments in advanced manufacturing and technology development in the UAE as part of the Gulf state’s industrial strategy.

“Separately, ADNOC’s partners inaugurated eight UAE manufacturing facilities at ADIPEC, taking the total number of facilities enabled by the ICV program to 16 this year and 33 in total since the start of the MIITE initiative”, ADNOC said.

At ADIPEC, ADNOC “detailed a wide range of commercial opportunities across its value chain and encouraged the private sector to capitalize on these opportunities and establish and expand manufacturing capacity in the UAE”.

ADNOC also launched what it called the Responsible Sourcing Program, which “will ensure greater transparency and encourage sustainable procurement practices” in the company’s supply chain, ADNOC said.

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