Adnoc, an Abu Dhabi-based energy company, announced 30 new agreements for local production of non-oil products worth Dh10 billion in its supply chain as it intensifies its decarbonization efforts. Personal protective equipment, battery energy storage systems, and uninterrupted power supply (UPS) equipment are among the goods that will be manufactured locally under these agreements, allowing Adnoc organizations to replace diesel generators with more sustainable energy.
The agreements support Adnoc’s target to locally manufacture Dh70 billion worth of products in its procurement pipeline by 2027 as part of the ‘Make it in the Emirates’ initiative. The agreements will stimulate industrial growth, create more private sector jobs for UAE nationals and strengthen the resilience of the energy major’s supply chain, as per khaleejtimes.
As part of its Net Zero by 2045 goal, the energy giant's In-Country Value (ICV) initiative incentivizes suppliers to embrace sustainable technologies while establishing new manufacturing facilities in the UAE. Since 2018, the ICV initiative has returned Dh145 billion to the UAE economy.
“Adnoc’s localisation of its supply chain is consistent with our diversification strategy and the Abu Dhabi Industrial Strategy (ADIS), which is accelerating the UAE manufacturing sector’s transformation and strengthening its position as the region’s most competitive industrial hub,” said Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development.
He stated that these initiatives have contributed to the non-oil industries contributing 53% of Abu Dhabi's overall GDP by the end of Q1 2023