Adnoc awards $2bn contracts to back localisation

Abu Dhabi state-backed oil giant Adnoc says it prioritising local manufacturing to mitigate supply chain risks and cut delivery times for critical equipment.

The oil company has signed framework agreements valued at AED6 billion ($1.6 billion) with 12 UAE companies to manufacture critical industrial equipment under the “Make it in the Emirates” initiative, according to a statement.

The agreements include manufacturers of cables and pressure vessels. Adnoc said the initiative will create up to 1,300 skilled private sector jobs.
 
The companies are based in the Industrial City of Abu Dhabi, Khalifa Economic Zones Abu Dhabi, Dubai Industrial Park, Jebel Ali Free Zone and industrial areas in Sharjah and Umm Al Quwain.

Sultan Al Jaber, Adnoc’s CEO, said last year that the company aims to expand its local manufacturing procurement programme by AED20 billion to AED90 billion by 2030.

The company says its in-country value programme has driven AED242 billion back into the UAE economy and generated jobs for 17,000 locals since 2018. 

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Last week the UAE and US committed to spend a combined total of $440 billion in the energy sector by 2035, the head of Abu Dhabi National Oil Company (Adnoc) has said.