ADNOC Introduces Program to Enhance UAE Manufacturing Resilience

Post by : Bianca Suleiman

Abu Dhabi: ADNOC has unveiled its Industrial Resilience Program at the fifth Make it in the Emirates forum. This initiative features five pivotal strategies designed to fortify the UAE’s supply chain, enhance domestic manufacturing, and secure long-term sustainability within the industrial sector.

This new program builds upon ADNOC’s effective In-Country Value (ICV) initiative, which emphasizes increasing local procurement of essential products that can be manufactured within the UAE. By doing so, ADNOC aims to lessen dependency on international supply chains and shield itself from global disruptions.

The company has committed to prioritizing locally produced goods in its strategic projects, thereby fostering demand for national products and aiding the evolution of local manufacturers.

Omar Abdulla Alnuaimi, Acting Group Chief, Commercial and ICV at ADNOC, remarked that the program is in accordance with the UAE leadership’s goal to improve industrial resilience and expand local manufacturing capabilities. He noted that the initiative will offer long-term foreseeability in demand, supporting the cultivation of a self-sufficient industrial ecosystem.

The Industrial Resilience Program is anchored in five key initiatives:

• Refined ICV Model: A more adaptive procurement method focusing on investment value, local production depth, and workforce enhancement.
• Local+ Policy: This requires ADNOC contractors to procure products from certified UAE manufacturers in essential categories, contingent upon cost and quality criteria.
• ICV+ Incentive: Contractors can earn extra ICV credits by sourcing from local vendors, encouraging a preference for UAE manufacturers.
• ADNOC Multiplier Tool: This tool aids manufacturers in boosting the local content within their offerings, thereby reinforcing domestic supply chains.
• Build-to-Demand Initiative: By providing clarity on future demand, this initiative encourages businesses to establish or grow local production capabilities for vital industrial products.

This initiative is in alignment with the national “Make it in the Emirates” campaign, which targets the localization of pivotal industries and aims to strengthen the nation’s industrial foundation.

ADNOC is steadily advancing towards its target of generating AED 90 billion worth of products locally by 2030, covering over 150 high-priority items such as drilling gear, process chemicals, valves, and oil country tubular goods.

To date, the organization has secured agreements exceeding AED 80 billion for the production of goods within the UAE, while its partners have invested AED 4.5 billion into new and advanced manufacturing plants across the country.

Through its ICV program, ADNOC aims to inject AED 220 billion into the UAE economy over the next five years, further bolstering national economic growth and fostering industrial advancement.

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