Adnoc signs agreements with 23 companies worth Dhs17 billion
This approach underscores Adnoc’s efforts to ensure business continuity and incentivise investors and suppliers to set up or expand manufacturing capacity in the UAE
Adnoc, a reliable and responsible provider of lower-carbon intensity energy, on Thursday announced that it has signed agreements with 23 UAE and international companies for local manufacturing opportunities across a wide range of critical industrial products worth Dhs17 billion ($4.63 billion).
The agreements outline the intention of the companies to manufacture these products in the UAE, supporting the ‘Make it in the Emirates’ initiative and the ‘Abu Dhabi Industrial Strategy’.
The products are part of the Dhs70 billion ($19 billion) worth of products in Adnoc’s procurement pipeline that the company identified for domestic manufacturing in July 2022. Adnoc continues to encourage the private sector to capitalize on the commercial opportunities for domestic manufacturing across its value chain through its In-country Value (ICV) program, as it expands and decarbonizes its operations.
Dr Saleh Al Hashimi, Adnoc Director, Commercial & In-country Value Directorate, said: “In line with the directives of the UAE’S wise leadership, Adnoc is creating long-term domestic manufacturing opportunities from our procurement pipeline to enhance the UAE’S industrial base and strengthen the resilience of our 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 Dhs25 billion ($6.8 billion) with UAE and international companies. The company continues to take a transparent approach to showcasing its product outlook as part of its ICV program. This approach underscores Adnoc’s efforts to ensure business continuity and incentivize investors and suppliers to set up or expand manufacturing capacity in the UAE. Adnoc aims to drive Dhs175 billion ($48 billion) back into the UAE economy through its ICV program as part of its five-year business plan for 2023-2027.
Adnoc recently announced a bold new strategy to progress the world-scale decarbonisation of its operations.
The announcement follows the guidance by Adnoc’s Board of Directors in November 2022 to accelerate the delivery of its low-carbon growth strategy and the approval of its Net Zero by 2050 ambition. This builds on Adnoc’s strong track record as a leading lower-carbon intensity energy producer, which includes its use of zero-carbon grid power, a commitment to zero flaring as part of routine operations and deployment of the region’s first carbon capture project at-scale.
Acting on the Board’s guidance, Adnoc has allocated $15 billion (Dhs55 billion) to advance an array of projects across its diversified value chain by 2030.