Adnoc’s ICV programme set to drive local, foreign industrial investment

As part of its commitment to drive the UAE’s industrial sector, Adnoc has enabled the establishment of eight UAE-based and international industrial centres in less than a year under commercial agreements signed through its In-Country Value (ICV) programme. The industrial facilities have generated a combined value of more than Dhs700 million and created 800 job opportunities for UAE citizens.

These agreements support Adnoc’s expanded target to locally manufacture Dhs90 billion (US$24.5 billion) worth of products in its procurement pipelines by 2030 as part of its commitment to boost ‘Make it in the Emirates’ initiative, provide commercial opportunities for domestic manufacturing across its value chain through its In-Country Value (ICV) programme and drive significant value back into the economy.

Omar Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology (MoIAT) and Chairman of the National ICV programme Committee, affirmed that MoIAT is working to rollout initiatives, programmes and plans to achieve the objectives of the National Strategy for Industry and Advanced Technology, towards strengthening the UAE’s industrial standing on a global level, boosting the competitiveness of the country’s industries, and increasing the contribution of the industrial sector to the national GDP.

He added that one of the foremost initiatives launched by the Ministry of Industry and Advanced Technology is the National ICV programme, which aims to redirect procurement to the national economy. The programme has achieved considerable success and witnessed an expansion of membership to include 31 federal and local government agencies and major national companies. Meanwhile, the value of investments of companies certified under the National ICV Programme until H1 2024 reached Dhs205 billion. The same period also registered a 66 percent increase in national spending among entities implementing the National ICV Programme compared to the first half of 2023 by directing more than Dhs48 billion to the national economy.

He added, “Within the framework of Adnoc’s programme to enhance national content, and its support to the Make it in the Emirates initiative, Adnoc has successfully enabled local and international companies to establish eight new industrial facilities in the country in less than a year with a commercial value of more than Dhs700 million. This will contribute to the creation of job opportunities in the country, in line with ongoing efforts to support the National ICV programme.”

He emphasised that the Ministry of Industry and Advanced Technology will continue to work with all partners, major entrepreneurial companies, and other entities to enhance the role of the industrial sector.

Rashed Abdulkarim Al Blooshi, Undersecretary of the Abu Dhabi Department of Economic Development (ADDED), said, “We are pleased to see the impressive growth ofAdnoc’s ICV programme and its role in creating jobs for UAE talents, attracting FDIs, and advancing the industrial sector. As a catalyst for economic growth and diversification in Abu Dhabi, our efforts are in line with the achieving the objectives of ‘Operation 300bn’, the UAE’s industrial strategy, and the UAE’s Net Zero 2050 Strategy”. The Abu Dhabi Industrial Strategy (ADIS) focuses on supporting knowledge economy, Emiratisation, and employing advanced technologies, capitalizing on ICV and other programs on locally manufactured goods and supply chains”.

He added, “ADIS initiatives are driving the growth of the manufacturing sector in Abu Dhabi; in Q1-2024, the industrial GDP reached Dhs24.8 billion, contributing 8.7 percent to the Emirate’s GDP, and 16 percent of its non-oil economy”.

Dr Saleh Al Hashimi, Director of Adnoc’s Commercial and ICV Directorate, said, “Adnoc is committed to continue leveraging our procurement pipeline through our successful ICV programme. Through the expanded scope of our ICV programme, we aim to create more private sector job opportunities for UAE nationals, enable small and medium enterprises, and attract new local and international manufacturers, in order to boost the UAE’s industrial growth and economic prosperity. The agreements signed to-date with local and global companies, enable the construction and expansion of several manufacturing and production facilities in the UAE, cementing our country’s position as a global industrial leader, reducing the nation’s dependency on imports for vital products and replacing them with locally manufactured products labelled with “Made in the UAE”.

Among international and UAE-based companies that have set up their Industrial centers under these agreements include Tenaris, a global producer of steel pipes for the energy industry; Ingenia Polymers, an international producer of masterbatches; and French wellheads manufacturer, Technip FMC.

WAM