ADNOC Launches Industrial Resilience Program to Boost Local Manufacturing

ADNOC Unveils New Initiatives at ‘Make it in the Emirates’ Forum

Abu Dhabi National Oil Company (ADNOC) has officially announced its Industrial Resilience Program during the fifth edition of the ‘Make it in the Emirates’ forum. This program aims to fortify the UAE’s industrial landscape by introducing five strategic initiatives designed to enhance local manufacturing capabilities and improve supply chain resilience. The launch underscores ADNOC’s commitment to supporting local industries and mitigating risks associated with global supply chain disruptions.

The Industrial Resilience Program builds on the success of ADNOC’s In-Country Value (ICV) program, which has been instrumental in driving economic growth within the UAE. The new initiatives are tailored to encourage ADNOC’s contractors to prioritize sourcing from local manufacturers, ensuring that Made in the Emirates products are the preferred choice for ADNOC projects. This strategic shift is expected to bolster the domestic manufacturing sector and create a more robust industrial base in the region.

Omar Abdulla Alnuaimi, ADNOC’s Acting Group Chief, Commercial and ICV, emphasized the program’s alignment with UAE leadership’s directives. He stated that the Industrial Resilience Program aims to provide long-term demand visibility to industry partners and ensure that local products are prioritized in ADNOC’s procurement processes. The initiative is set to enhance local manufacturing capacity and support sustainable industrial growth across various sectors.

Core Initiatives of the Industrial Resilience Program

The Industrial Resilience Program comprises five key initiatives designed to promote localization and industrial growth. The first initiative is an enhanced ICV model, which moves beyond a one-size-fits-all approach to procurement. This model focuses on fit-for-purpose award strategies that prioritize investment value, manufacturing depth, and workforce development.

The second initiative, termed ‘Local+’, mandates ADNOC’s Engineering, Procurement, and Construction (EPC) contractors to prioritize products manufactured in the Emirates. Contractors must select from an approved list of national manufacturers who meet ADNOC’s technical and qualification standards. The program aims to expand the local supplier base, with 70 local manufacturers already selected to participate.

The ‘ICV+’ initiative offers additional incentives to EPC contractors who purchase from local manufacturers, thereby enhancing the ICV credit system. Additionally, the ‘ADNOC Multiplier’ tool allows national manufacturers to increase the locally produced content in their products, further strengthening local supply chains. Lastly, the ‘Build-to-Demand’ initiative provides manufacturers with long-term demand visibility, enabling them to establish or expand local production of critical industrial products.

Long-term Goals and Economic Impact

ADNOC’s Industrial Resilience Program is part of its broader strategy to manufacture $24.5 billion (AED 90 billion) worth of products locally by 2030. This includes over 150 high-priority industrial products essential to ADNOC’s operations, such as drilling equipment and process chemicals. The program not only aims to localize production but also to drive AED 220 billion into the UAE economy over the next five years through the ICV initiative.

Since 2022, ADNOC has signed local manufacturing agreements worth AED 80 billion and has seen its partners invest AED 4.5 billion in new manufacturing capabilities across the UAE. These initiatives are expected to significantly contribute to the UAE’s economic diversification efforts and enhance the resilience of its industrial sector.

Frequently Asked Questions

What is the Industrial Resilience Program?

It is a new initiative by ADNOC aimed at enhancing local manufacturing and supply chain resilience in the UAE.

How does the program benefit local manufacturers?

The program prioritizes local sourcing, providing manufacturers with long-term demand visibility and incentives for local production.

What are the key initiatives within the program?

The program includes initiatives like ‘Local+’, ‘ICV+’, and ‘Build-to-Demand’ to promote local manufacturing and industrial growth.

What is ADNOC’s long-term manufacturing goal?

ADNOC aims to locally manufacture $24.5 billion worth of products by 2030.

How much investment has ADNOC made in local manufacturing since 2022?

ADNOC has signed local manufacturing agreements worth AED 80 billion since 2022.