ADNOC gives $196.2 million in contracts to local manufacturers to help the UAE rely less on imports
ADNOC signed contracts worth $196.2 million (AED 720 million) to support local manufacturing of various products in its operations. Its logistics division also expanded its fleet with a $4.4 billion deal.
ADNOC has awarded contracts to 11 companies as part of its plan to support the UAE’s economy and cut down on imports, the state-owned oil company said in a statement on Thursday.
The announcement was made during ADNOC’s business partnership event, held alongside the ADIPEC conference in Abu Dhabi.
Contracts for well casing protection went to Corrosion Technology Services Middle East and Bin Sari Specialized Technologies. Al Ghaith Industries received two contracts to produce caustic soda and mixed brine.
Emirates National Chemicals Company was awarded a contract for producing demulsifiers, Geebee Garments for jackets, and LIWA Petroleum for coveralls and raincoats, among others.
At the event, ADNOC encouraged private companies to explore business opportunities and boost manufacturing within the UAE.
“Through our In-Country Value (ICV) program, we are increasing the UAE’s manufacturing capabilities, promoting self-sufficiency, and helping drive the nation’s growth,” said Yaser Saeed Almazrouei, ADNOC’s executive director for people, commercial, and corporate support.
Economic Contribution
Since 2018, ADNOC’s In-Country Value (ICV) program has put $51 billion (AED 187 billion) back into the UAE’s economy. By building up local manufacturing, the program has helped reduce the country’s dependence on imports.
The program has created 14,000 private-sector jobs for Emiratis and aims to add 13,500 more jobs by 2028.
L&S Deal
ADNOC Logistics & Services (ADNOC L&S) has signed contracts totaling $4.4 billion with international companies to expand its fleet of ships and meet rising global demand for shipping services.
Through its joint venture, AW Shipping, ADNOC L&S awarded contracts worth $1.9 billion to China’s Jiangnan Shipyard to build nine large ethane carriers and four large ammonia carriers, according to Emirates News Agency.
Additionally, ADNOC L&S signed contracts worth $2.5 billion with Korea’s Samsung Heavy Industries and Hanwha Ocean to build up to 10 LNG carriers, bringing the total investment to $4.4 billion.
“Our company is dedicated to supporting the local economy through the ICV program, which reached an 86% contribution rate in 2023,” said Abdulkareem Al Masabi, CEO of ADNOC L&S.
What to watch for
ADNOC plans to add $48.5 billion (AED 178 billion) to the UAE’s economy by 2028.
Published: 8th November 2024
For more article like this please follow our social media Twitter, Linkedin & Instagram
Also Read:
Emirates Group Reports Record $2.5 Billion Profit for First Half of the Year Thanks to Strong Travel Demand
UAE Banks’ Reserves Increase by 10.5% to Reach $136.8 Billion in July
Here are the best places for meat lovers in Dubai
