By announcing these new agreements, ADNOC is on the verge of achieving its goal of buying products that can be produced locally for a value of 70 billion dirhams (19 billion dollars), as part of the purchase plans that ADNOC had set in June 2022.
These agreements have contributed to the redirection of 2.84 billion dirhams towards the local economy, thanks to the investments of suppliers working with ADNOC, in the establishment of new industrial facilities or the extension of existing ones in the Emirates.
ADNOC has accelerated its efforts to implement its goal of procuring industrial products that can be produced locally, in 2027 instead of the previously announced 2030 date.
Since the launch of the “Make in the UAE” forum, ADNOC has more than tripled its direct spend on purchasing products from local manufacturers.
It is estimated that the agreements signed by ADNOC at the “Make in the UAE” forum will contribute 10% to the achievement of Abu Dhabi’s industrial strategy target of doubling the size of Abu Dhabi’s industrial sector. the emirate to reach 172 billion dirhams.
The agreements are also expected to help create 21,500 job opportunities in the UAE by 2031.
In turn, says Dr. Saleh Al Hashemi, Head of Commercial Affairs and Country Value Promotion at ADNOC, “ADNOC is a major driver of industrial growth in the UAE, and aims to strengthen its role and contribution by localizing the supply chain for its industrial product needs, creating long-term local manufacturing opportunities.” Long-term private sector sourcing, for a wide range of industrial commodity products, in its plan procurement helps ensure business continuity for the company, and supports its efforts to reduce emissions from its operations to help build a low-carbon future.
Local manufacturing of industrial commodities helps build supply chain flexibility for ADNOC’s business and operations, and supports its ability to respond more quickly to market dynamics, in its efforts to reduce emissions of its operations and increase its investments in low-carbon solutions. energy solutions.
Local manufacturing of industrial commodities also supports the UAE’s strategic initiative to achieve climate neutrality by 2050, by encouraging new investors to use clean technologies to establish their projects in the Emirates, thanks to the incentives provided. by the “ADNOC” program to improve local added value. .
ADNOC has allocated 20 billion dirhams, out of the value of the agreements signed, amounting to 50 billion dirhams, for the purchase of structures and metal products exclusively from national factories.
Local manufacturing facilities will create thousands of new jobs, help drive GDP growth, and improve local supply chain flexibility across multiple industry sectors in the UAE.
The “Make in the UAE” forum is organized by the Ministry of Industry and Advanced Technology, in cooperation with the Abu Dhabi Department of Economic Development and ADNOC. The forum brings together a number of the largest industrial companies to explore local manufacturing and investment opportunities in the UAE.
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