ADNOC Launches $54 Billion Local Manufacturing Push to Strengthen Supply Chains
ADNOC launches a major industrial program aimed at boosting local manufacturing and strengthening supply chains, with billions in project spending tied to domestic sourcing and long-term demand commitments.
(P&GJ) — ADNOC has launched a new industrial program aimed at expanding local manufacturing capacity and strengthening supply chains across its upstream and downstream operations, with billions in project spending tied to domestic sourcing.
The Industrial Resilience Program, introduced at the “Make it in the Emirates” forum in Abu Dhabi, builds on ADNOC’s In-Country Value (ICV) initiative and is designed to increase the use of locally manufactured goods across its project pipeline.
As part of the program, ADNOC plans to direct approximately AED200 billion ($54 billion) in procurement toward local manufacturers between 2026 and 2028, while encouraging contractors to prioritize domestic suppliers.
The initiative includes a “Local+” framework requiring engineering, procurement and construction (EPC) contractors to source from approved UAE-based manufacturers where products meet technical and commercial requirements. ADNOC said an initial group of 70 companies has been selected, with additional suppliers expected to be added.
A complementary “ICV+” mechanism will provide additional credit incentives to contractors that increase procurement from local manufacturers, reinforcing ADNOC’s push to shift sourcing away from international suppliers.
The program also introduces tools aimed at expanding domestic production capacity, including an “ADNOC Multiplier” designed to increase local content in manufactured goods and a “Build-to-Demand” model that provides long-term visibility on procurement needs to support new or expanded manufacturing facilities.
“In line with the UAE leadership’s directives, ADNOC is launching the Industrial Resilience Program to expand manufacturing capacity and provide long-term demand visibility to industry partners,” said Omar Abdulla Alnuaimi, acting group chief for commercial and ICV at ADNOC.
He said the initiative is intended to ensure locally manufactured products become a primary option across ADNOC’s project portfolio while supporting broader industrial growth.
The program builds on ADNOC’s ICV strategy launched in 2018, which has already driven significant investment in domestic manufacturing. Since 2022, the company has signed agreements worth approximately AED80 billion with local and international partners, while additional investments have supported new industrial facilities across the UAE.
ADNOC is targeting AED90 billion ($24.5 billion) in locally manufactured products by 2030, including key equipment such as drilling systems, valves, process chemicals and oil country tubular goods.
The company said the expanded program is intended to reduce exposure to global supply disruptions while supporting long-term industrial capacity growth in the UAE.