ADNOC Unveils New Program to Enhance UAE Manufacturing Resilience

Abu Dhabi: In a significant announcement at the fifth edition of the Make it in the Emirates forum, ADNOC revealed its launch of the Industrial Resilience Program. This initiative introduces five strategic initiatives designed to strengthen the UAE’s supply chains, enhance local manufacturing capabilities, and ensure sustainable industrial growth.

The program extends the principles of ADNOC's successful In-Country Value (ICV) initiative, emphasizing the increased local sourcing of essential products that can be manufactured within the UAE. This strategy aims to diminish dependence on global supply chains and safeguard the organization from international disruptions.

ADNOC confirmed that the program will prioritize products manufactured in the UAE for its strategic projects, thereby cultivating robust demand for local goods and bolstering the capabilities of national manufacturers.

Omar Abdulla Alnuaimi, Acting Group Chief, Commercial and ICV at ADNOC, highlighted that this initiative aligns with the vision set forth by the UAE leadership to enhance industrial resilience along with expanding local manufacturing capacity. He remarked that the program will provide long-term demand visibility and foster the development of a more self-reliant industrial ecosystem.

The Industrial Resilience Program encompasses five core initiatives:

• Enhanced ICV Model: This flexible procurement strategy prioritizes investment value, depth in local manufacturing, and workforce development.
• Local+ Policy: ADNOC contractors are mandated to source products from approved UAE manufacturers in vital categories, provided they meet cost and quality thresholds.
• ICV+ Incentive: Additional ICV credits will be offered for sourcing from local suppliers, thereby encouraging contractors to favor UAE manufacturers.
• ADNOC Multiplier Tool: This tool aids manufacturers in increasing the local content of their products, thus reinforcing domestic supply chains.
• Build-to-Demand Initiative: This initiative provides long-term demand visibility, motivating companies to establish or expand local production facilities for essential industrial products.

The program is a strong support for the national “Make it in the Emirates” initiative, which aspires to localize critical industries and fortify the industrial foundation of the country.

ADNOC is progressing towards its goal of manufacturing AED 90 billion worth of products locally by 2030, encompassing over 150 priority items such as drilling equipment, process chemicals, valves, and oil country tubular goods.

To date, the company has secured agreements exceeding AED 80 billion for locally manufactured products. Furthermore, its partners have invested AED 4.5 billion into new factories and advanced manufacturing facilities throughout the UAE.

Through its ICV program, ADNOC aims to make a substantial contribution of AED 220 billion to the UAE economy over the next five years, thus bolstering national economic growth and industrial advancement.