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ADNOC offers USD 16.3 billion in manufacturing opportunities to UAE suppliers

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ADNOC’s latest initiative builds on its In-Country Value (ICV) program, launched in 2018 to redirect procurement spending into the domestic economy

Abu Dhabi National Oil Company (ADNOC) is seeking to turn its purchasing power into a driver of industrial growth, offering UAE manufacturers a pipeline of potential business as the country looks to strengthen domestic production and reduce dependence on overseas suppliers.

The opportunities cover equipment and components used across ADNOC’s operations, including rotating machinery, electrical and automation systems, drilling and completion tools, chemicals, catalysts, pipes, fabrication products, and heavy equipment.

Several of the targeted products are currently imported, creating scope for manufacturers to establish new facilities or expand existing production capacity in the UAE.

“We are inviting companies to build capabilities in the UAE that will serve our industry and country for years to come,” Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC’s managing director and group chief executive, said at the Make it with ADNOC Forum in Abu Dhabi on October 25.

ADNOC’s latest initiative builds on its In-Country Value (ICV) program, launched in 2018 to redirect procurement spending into the domestic economy.

By the end of 2025, the programme had channelled more than Dh307 billion (USD 83.6 billion) into the UAE economy, supporting the localisation of more than 130 products and the establishment or expansion of 95 factories. It has also supported employment opportunities for more than 27,500 Emiratis at participating private-sector companies.

Omar Abdulla Al Nuaimi, ADNOC’s group chief for commercial and ICV, said the company had already achieved Dh80 billion of its Dh90 billion local manufacturing target for 2030. The new opportunities provide manufacturers with greater visibility of future demand, helping them assess whether investments in production lines, equipment, and workforce development are commercially viable.

The company is also expanding its Local+ programme, which now includes more than 100 UAE manufacturers, up from 70 when it was launched in May 2026. Under the initiative, contractors bidding for new ADNOC projects must source relevant products from approved local manufacturers, provided they meet the applicable requirements.

Alongside the manufacturing pipeline, ADNOC is changing how suppliers register and compete for contracts. A consolidated digital platform will bring registration, qualification, and compliance procedures together, with requirements tailored to the nature and risk of the work.

The company expects the changes to reduce supplier onboarding times by up to 80% and halve documentation requirements. The company also aims to shorten purchasing cycles by as much as 40% through procurement reforms. Artificial intelligence will support document verification and allow information already submitted to be reused, reducing repetitive administrative work.

From November 1, commercial offers and ICV contributions will be assessed together under a single evaluation model, with a 70% weighting for commercial terms and 30% for ICV. The revised framework replaces the previous bid-matching approach and is intended to encourage suppliers to submit their most competitive offers at the outset.

ADNOC is also adjusting requirements according to contract size. Contracts worth less than Dh2 million will be exempt from ICV requirements, while contracts below Dh50 million will no longer face ICV retention obligations. These changes aim to ease administrative burdens and enhance cash flow, especially for smaller businesses.

The company will work with the Ministry of Industry and Advanced Technology and the Abu Dhabi Investment Office to connect manufacturers with industrial support and financing through the National Industrial Resilience Fund.

The objective is to help businesses move from identifying a procurement opportunity to establishing commercially sustainable production. Manufacturers will need to assess capital expenditure, access to skilled labour, technology requirements, and the ability to meet ADNOC’s technical and pricing standards.

ADNOC also signed memoranda of understanding with the Abu Dhabi Investment Office and KEZAD Group at the forum, extending collaboration around industrial development and investment.

The initiative supports the UAE’s broader effort to diversify its economy, expand manufacturing, and develop higher-skilled employment. The government’s Make it in the Emirates strategy aims to increase the industrial sector’s contribution to the economy, attract investment, and strengthen domestic supply chains.

ADNOC closely ties the business case to operational resilience. Local production of critical equipment and spare parts could reduce delivery times and limit exposure to international shipping disruptions, helping energy projects maintain schedules and operating facilities secure essential components.

However, the announced Dh60 billion represents manufacturing opportunities, not a guaranteed investment or a confirmed volume of contracts for individual suppliers. Actual outcomes will depend on manufacturers’ ability to invest, compete on cost and quality, and meet demand as ADNOC’s projects develop.

If the opportunities translate into new factories, expanded production, and sustained orders, the programme could deepen the UAE’s industrial capabilities while giving local suppliers a larger role in the energy supply chain.

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