Adnoc has signed agreements with more than 60 UAE and international companies to manufacture key non-oil products in the UAE in its supply chain as part of its localization plan.

The energy company said in a statement that it expected to meet its domestic production target of $19 billion worth of products in its procurement pipeline by 2027, up from a previous target of 2030. The agreements, announced at the Makeitinthe Emirates forum in ABU Dhabi, flow Dh2.84 billion back into the UAE economy through industrial investments by suppliers to expand or build new facilities, Adnoc said.

Adnoc is an important engine of industrial growth in the UAE and we are enhancing this role by localizing our supply chain and creating long-term domestic manufacturing opportunities for the private sector through our sourcing channels, said Saleh Al Hashmi, Commercial and Director, Adnoc. These agreements will deliver more sustainable value to Adnoc and enhance the resilience of our supply chain and the UAE's industrial base. In 2021, the UAE launched the $300 billion Industrial Strategy Initiative with the goal of becoming a global industrial hub by 2031.

The comprehensive ten-year roadmap focuses on increasing the contribution of the industrial sector to GDP from Dh133 billion in 2021 to DH300 billion in 2031. The strategy focuses on boosting production in 11 priority sectors, supporting the development of national industries, attracting foreign investment, modernizing legislation and ensuring dedicated financing for local industrial companies.

In February, Adnoc signed deals worth Dh17 billion with 23 local and international companies to boost manufacturing in the UAE. This was followed in November when Adnoc signed deals worth up to 35 billion dirhams with 25 companies, including Siemens, Halliburton and Schneider Electric.

Of the deals signed so far, 20 billion dirhams were earmarked for local manufacturing plants, where components and materials for projects are assembled, Adnoc said. These manufacturing plants will create thousands of new jobs, contribute to gross domestic product growth and enhance the resilience of local supply chains across the UAE's industrial sectors.

In his speech, Minister of Industry and Advanced Technology and President-designate of Cop28, Dr Sultan Al Jaber, said that the UAE has managed to increase the contribution of the industrial sector to the country's GDP to Dh182 billion, A 38% increase from the 132 billion dirhams in 2020 at the Makeitinthe Emirates forum.

In 2023, the UAE plans to increase the value of procurement agreements and industrial investments for local manufacturers by more than 10 billion dirhams, bringing the total value of localised targeted products to 120 billion dirhams, said Dr Al Jaber.Editor/XingWentao