Adnoc opens Dh60 billion in local manufacturing work through 2030

Key Points

1. Adnoc unveiled more than Dh60 billion in local manufacturing opportunities running to 2030 at Abu Dhabi forum.
2. The push feeds Operation 300bn, the UAE plan to lift industrial GDP to Dh300 billion by 2031.
3. Access to funding, contracts and new technology will decide whether smaller manufacturers can actually capture the work.

The latest:

More than Dh60 billion in local manufacturing opportunities through 2030 were unveiled by Adnoc on Sunday at the second Make it with Adnoc Forum in Abu Dhabi, alongside changes to its procurement, supplier registration and in-country value policies. The state energy company said the revisions are designed to make it easier for manufacturers, suppliers and investors to compete for its contracts.

Details:

• The forum: The second edition of the Make it with Adnoc Forum was held in Abu Dhabi on Sunday, bringing together industry figures, investors, partners and officials from the Ministry of Industry and Advanced Technology. Its stated purpose was to connect government support with what local manufacturers need to scale domestic production.
• The numbers: Adnoc has channelled more than Dh307 billion back into the national economy since launching its in-country value programme in 2018, according to The National, and has signed roughly Dh80 billion worth of offtake agreements directed at local manufacturing.
• Earlier pledge: At the first edition of the forum in May, Adnoc announced Dh200 billion in planned project awards covering 2026-2028. Sunday’s Dh60 billion package extends the horizon to 2030, but the company did not set out a breakdown of the opportunities by sector.
• The policy target: The Ministry of Industry and Advanced Technology launched Operation 300bn in 2021, aiming to raise the industrial sector’s contribution to national GDP from Dh133 billion to Dh300 billion by 2031. The plan depends on an ecosystem where local businesses can grow and compete.
• The executive: Dr Sultan Al Jaber, Adnoc’s managing director and group chief executive and Minister of Industry and Advanced Technology, said: “We are inviting companies to build capabilities in the UAE that will serve our industry and country for years to come.”
• The programmes: Supporting initiatives include the National In-Country Value Programme, designed to localise supply chains and advance Emiratisation, and Factory Forward UAE, which brings the country’s industrial technology transformation programmes onto a single platform.
• The constraint: The National argued that success hinges on whether businesses, particularly small and medium enterprises, can access funding, more contracts and modern technology. Equipping factories with the latest technology is described as essential to producing better goods and sustaining improvement.
• The export test: The newspaper assessed that the measures are geared towards ensuring locally made products meet international standards on quality and pricing, helping UAE manufacturers compete in overseas markets rather than only supplying domestic buyers.
• The rationale: The National pointed to Covid-19 and the Iran war as recent shocks that underlined the value of home-grown industry, framing the forum as part of a wider effort to reduce UAE dependence on foreign suppliers.

Background:

Manufacturing sits at the centre of the UAE’s diversification drive and its push for self-sufficiency. Operation 300bn, launched in 2021, set the headline target; Adnoc’s in-country value programme, running since 2018, is the largest single procurement channel feeding it.

Between the lines:

The National’s reading is that announcements are the easy part. Adnoc’s cumulative pledges now span Dh307 billion recycled since 2018, Dh80 billion in offtake deals, Dh200 billion in 2026-2028 awards and Dh60 billion more to 2030 — far larger than the Dh167 billion gap Operation 300bn must close by 2031. The constraint identified is absorption: whether smaller manufacturers can finance, staff and equip themselves.

What’s next

The next Make it in the Emirates event, the ministry’s platform for companies building manufacturing operations in the country, is scheduled for May next year and will offer a measure of progress on investment, partnerships and job creation.