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Abu Dhabi targets 80% local sourcing for housing

The Abu Dhabi Projects and Infrastructure Centre (ADPIC) and Abu Dhabi Housing Authority (ADHA) have signed a new agreement aimed at significantly increasing the use of locally manufactured building materials across housing developments in the emirate, with a target of reaching up to 80% local sourcing.

The memorandum of understanding was signed during ‘Make it in the Emirates 2026’, the UAE’s flagship industrial platform, and forms part of broader efforts to strengthen domestic manufacturing capabilities, reinforce supply chain resilience and support national economic diversification goals.

The agreement is expected to create new opportunities for UAE-based manufacturers and suppliers by increasing demand for locally produced construction materials across upcoming residential developments in Abu Dhabi. At the same time, it is intended to support the delivery of more cost-efficient and sustainable housing projects by reducing reliance on imported materials and streamlining procurement processes.

The collaboration builds on an existing working relationship between ADPIC and ADHA, particularly in the development of integrated residential communities for Emirati citizens. Both organisations said the agreement reflects a shared vision to improve coordination across government entities while strengthening the role of the local industrial sector in major infrastructure and housing programmes.

Maysarah Mahmoud Eid, director-general of ADPIC, said the initiative marks an important milestone in integrating local industry more closely into Abu Dhabi’s project delivery ecosystem.

“Our collaboration with ADHA represents a significant step in strengthening the role of local industry within the capital project development ecosystem,” he said.

“By working towards sourcing 80% of building materials locally, we are empowering UAE manufacturers, enhancing supply chain resilience and ensuring that our infrastructure delivery continues to meet the highest standards of quality.”

He added that the agreement aligns with ADPIC’s wider mandate to oversee and improve project delivery across the emirate through greater efficiency, resilience and integration between stakeholders.

“At ADPIC, we are committed to advancing a more integrated, efficient and resilient approach to capital delivery. This MoU aligns with our mandate to oversee, supervise and monitor work across the emirate,” Eid said.

Officials noted that increasing local sourcing is expected to provide long-term economic benefits by stimulating industrial growth and encouraging greater investment in the UAE’s manufacturing sector. It is also expected to contribute to improved project timelines and enhanced supply chain stability amid ongoing global market fluctuations affecting the construction industry.

Hamad Hareb Al Muhairi, director-general of ADHA, said the partnership supports the authority’s objective of creating a more future-ready and sustainable housing ecosystem.

“Our collaboration with ADPIC reflects a shared commitment to advancing a more sustainable, agile and future-ready housing delivery ecosystem,” he said.

“Expanding local sourcing across housing project supply chains is a strategic step that strengthens supply chain resilience, reduces reliance on external markets and supports the efficient and reliable delivery of housing projects with greater long-term stability and confidence.”

Under the agreement, both entities will work together to increase the adoption of UAE-made materials across housing developments while ensuring compliance with approved standards for quality and sustainability. The partnership will also focus on improving procurement pathways and supporting local suppliers in accessing major development opportunities.

The initiative supports Abu Dhabi’s wider ambition to increase the contribution of national industries to strategic projects while advancing the UAE’s broader industrial and economic diversification agenda.