Adnoc, EGA sign $500m deal to secure local aluminium input

Adnoc and Emirates Global Aluminium (EGA) announced on Tuesday a five-year supply agreement for up to 1.5 million tonnes of calcined petroleum coke (petcoke), a key raw material used in aluminium production.

The agreement, valued at $500 million (Dhs1.84 billion), was signed during the "Make it in the Emirates” event currently taking place in Abu Dhabi, underscoring Adnoc’s commitment to supporting the UAE’s industrial growth and enhancing local supply chains.

Through the agreement, Adnoc Refining will supply at least 30 per cent of EGA’s calcined petcoke requirements from the Ruwais Refinery over the next five years, strengthening the UAE’s role as a global aluminium supplier by reducing its reliance on imports and fostering local industrial capabilities.

The agreement with EGA - the largest industrial company in the UAE outside the energy sector - supports Adnoc’s successful In-Country Value (ICV) Programme by promoting economic diversification in the UAE and supplying critical manufacturing materials to advanced industries.

The signing of the agreement was witnessed by Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO, and Abdulla Kalban, Managing Director of EGA. It was signed by Khaled Salmeen, Adnoc Downstream CEO, and Abdulnasser Bin Kalban, CEO of EGA.

Salmeen said, "This strategic agreement with EGA exemplifies Adnoc’s commitment to driving the ‘Make it in the Emirates’ initiative and the UAE’s industrial base. By supplying this critical raw material for aluminium production from our Ruwais Refinery, we are strengthening domestic supply chains, reducing reliance on imports and enabling growth in one of the nation’s most vital industrial sectors.

"Through our ICV Programme, we will continue to create more opportunities to enhance local manufacturing and industrial growth.”

As the world’s largest ‘premium aluminum’ producer, EGA continues to lead the UAE’s industrial diversification, with its products comprising the UAE’s largest made-in-the-UAE export after energy. The agreement between Adnoc and EGA will play a critical role in driving continued economic growth and ensuring the further development of the aluminium sector in the UAE.

Bin Kalban stated, "EGA has been a pioneer of industrialisation and economic diversification for decades, and today we are a champion of ‘Make it in the Emirates’ through our local procurement, metal supply to UAE industry and our record Emiratisation. This agreement with Adnoc enables us to secure a significant proportion of a key raw material locally, further increasing our economic impact in the UAE.”

The 1.5 million tonnes of calcined petcoke will enable EGA to produce around 3.75 million mt of aluminium over the five-year term of the agreement - approximately equal to the annual consumption of Germany.

In 2024, EGA’s direct, indirect and induced economic contributions to the local economy reached $6.4 billion (Dhs23.49 billion), accounting for 1.3 per cent of the UAE’s GDP and supporting more than 52,000 jobs.

Meanwhile Dr. Saleh Alhashmi, Director of the Commercial and In-Country Value Directorate at Adnoc, highlighted that Adnoc is a key supporter of the "Make it in the Emirates” initiative through its programme to boost national content in the industrial sector, a fundamental pillar of the company’s strategy to localise industry and strengthen the resilience of the national economy.

Alhashmi told the Emirates News Agency (WAM), on the sidelines of the "Make it in the Emirates", that Adnoc, in collaboration with strategic entities and private sector companies, is helping to unlock new opportunities for local industries and lay the foundations for a prosperous and sustainable economy, thereby reinforcing the UAE’s position as a competitive industrial hub regionally and globally.

He noted that the fourth edition of Make it in the Emirates provides a vital platform to explore investment opportunities, forge strategic partnerships and engage in interactive discussions aligned with the aspirations of the industrial sector, which is the largest non-oil contributor to Abu Dhabi’s GDP.

Alhashmi added that Adnoc, through its participation in the event, is focusing on showcasing its plans to procure locally manufactured products, its strategic partnerships, and its ongoing commitment to supporting the initiative’s objectives. These efforts support the acceleration of economic diversification and the reinforcement of the national industrial base.

He noted that Adnoc is targeting the procurement of locally manufacturable products worth up to Dhs90 billion by 2030, in a move to boost opportunities for manufacturers, empower entrepreneurs, and build a robust and sustainable industrial sector.

Dr. Alhashmi expressed Adnoc’s pride in its strategic partnership with the Ministry of Industry and Advanced Technology in supporting the Make it in the Emirates initiative through the In-Country Value (ICV) programme. Since its launch in 2018, the programme has redirected Dhs242 billion into the local economy and generated more than 17,000 job opportunities for Emiratis in the private sector.

He noted that, through the enhanced version of the programme, Adnoc aims to redirect up to Dhs200 billion to the national economy over the next five years, thereby supporting strategic projects and strengthening the resilience of the industrial base.