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ADNOC eyes growing its local manufacturing target

The new target is part of ADNOC's expanding ICV programme. (Image source: ADNOC)

ADNOC has upped its local manufacturing target for critical industrial products in its procurement pipeline to AED90bn (US$24.5bn) by 2030, to strengthen the UAE’s industrial sector and boost local manufacturing capabilities

ADNOC’s previous 2027 target for local manufacturing of AED70bn (US$19bn) worth of products was delivered ahead of schedule following the award of two contracts for metal pipes and valves worth AED16.8bn (US$4.6bn) to local manufacturers.

Expanded ICV programme

The new target, announced at the ‘Make it in the Emirates’ forum, is part of ADNOC’s expanded In-Country Value (ICV) programme which aims to drive an additional AED178bn (US$49bn) back into the UAE economy by 2028.
His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, said, "Since the launch of ADNOC's In-Country Value programme in 2018, we have successfully collaborated with strategic partners to transform this initiative into an integrated national economic programme to boost the UAE’s economic development.

“This expanded initiative will support the UAE’s economic diversification, attract local and international investors, and provide high-skilled private sector jobs for UAE nationals. Additionally, it will stimulate entrepreneurial growth and drive sustainability in ADNOC’s supply chain. We invite local and international manufacturers to take advantage of our ICV programme and participate in the UAE’s industrial growth journey.”

ADNOC’s expanded ICV programme will provide an accelerator programme to enable small and medium sized Emirati companies to conduct business across ADNOC’s supply chain. The programme will also introduce incentives for the adoption of clean technologies and best-in-class environmental, social, and governance (ESG) practices, as well as accelerating the adoption of artificial intelligence (AI) in ADNOC’s supply chain.

Also announced at the ‘Make it in the Emirates’ forum was the award of a construction contract for TA’ZIZ’s 1 million tons per annum (mtpa) low-carbon ammonia production facility. The construction contract was awarded by Fertiglobe, a partner of TA’ZIZ, Mitsui & Co., Ltd. and GS Energy Corporation, to Tecnimont S.p.A (MAIRE Group). Construction is set to begin in the third quarter of 2024, with operations scheduled to commence in 2027.