Adnoc Unlocks $16.3 Billion in Local Manufacturing Opportunities for UAE Suppliers

The Abu Dhabi National Oil Company (Adnoc) is set to offer over Dh60 billion ($16.3 billion) in local manufacturing opportunities to UAE suppliers through 2030. This initiative is part of a significant overhaul of the state energy giant's procurement processes, aiming to reduce supplier onboarding time by as much as 80 percent. These opportunities, which encompass more than 200 essential products and critical spare parts, were announced at the second Make it with Adnoc Forum in Abu Dhabi, preceding the Adipec energy conference. The first forum was held in May.

Adnoc's strategy focuses on replacing imports with locally produced goods to shorten delivery times and mitigate risks associated with global supply chain disruptions. Dr. Sultan Al Jaber, Adnoc’s managing director and group chief executive and UAE Minister of Industry and Advanced Technology, stated, “We are inviting companies to build capabilities in the UAE that will serve our industry and country for years to come.”

Omar Abdulla Al Nuaimi, group chief commercial and ICV at ADNOC, spoke at the Make it Adnoc Forum. The drive for domestic manufacturing is a direct response to recent disruptions in global energy supply chains, highlighting the critical importance of local production capabilities, according to Omar Alnuaimi, Adnoc’s group chief for commercial and in-country value (ICV). He emphasized during the forum, “It was our suppliers and vendors and partners who enabled us to continue pushing our products to the world and energy to the world.”

Adnoc has already made substantial progress towards its 2030 target of Dh90 billion for local manufacturing, having achieved Dh80 billion to date. This has supported the localization of over 130 products and led to the establishment or expansion of 95 factories, as reported by Mr. Alnuaimi. The newly announced opportunities span a wide range of sectors, including drilling equipment, electrical and automation systems, chemicals, catalysts, piping, and heavy machinery. Specific products targeted for local production include electrical submersible pumps, oil country tubular goods, seamless pipes, and compressors.

Mr. Alnuaimi further elaborated, “These are not 200 products only. These are opportunities, partnerships, industries, and a whole value chain.” Adnoc is also streamlining its supplier competition process, aiming to cut purchasing cycles by up to 40 percent, reduce documentation requirements by half, and waive prequalification for 60 percent of service categories.

Effective November 1, commercial and in-country value (ICV) offers will be evaluated together in a single assessment, with commercial terms carrying a 70 percent weight and ICV accounting for 30 percent. This change replaces Adnoc’s previous bid-matching system, encouraging suppliers to submit their most competitive offers upfront. Salama Alawadhi, Adnoc’s senior vice president for group commercial, ICV, and industrial development, noted that contracts under Dh2 million will be exempt from ICV requirements, while those below Dh50 million will no longer have ICV retention obligations.

Supplier registration, which previously took weeks, can now be completed within a single day. Artificial intelligence will also be employed to verify documents through a consolidated supplier platform. Osama Amir Fadhel, assistant undersecretary for industrial accelerators sector at the Ministry of Industry and Technology, attended the Make it Adnoc Forum.

The revised procurement rules are expected to have a significant impact across the UAE's industrial supply chain, particularly benefiting smaller companies working with major contractors, according to Osama Amir Fadhel. He described the 30 percent local-content weighting as creating a “ripple effect” throughout the energy sector and potentially serving as a model for other large buyers. Mr. Al Fadhel highlighted the company's commitment to efficiency, stating, “Zero bureaucracy is in our DNA today,” as automation efforts extend from government services to private and state-linked businesses.

The national ICV program has successfully redirected over Dh473 billion into the UAE economy, including Dh126 billion last year, and has generated 28,000 jobs for Emiratis. Adnoc's own ICV program has channeled more than Dh307 billion into the economy since 2018, with its annual contribution reaching Dh65 billion in 2025, an increase from Dh18 billion in its initial year. The company is collaborating with the Ministry of Industry and Advanced Technology, the Abu Dhabi Investment Office, and other partners to connect manufacturers with investment opportunities and financing via the National Industrial Resilience Fund. Adnoc has also expanded its Local+ program to include over 100 UAE manufacturers, up from 70 at its launch in May, mandating that contractors bidding on new projects source eligible products from approved local suppliers.

Mazen Shehada, director of business development at Abu Dhabi Oilfield Services, a participant in the inaugural Make it with Adnoc Forum, reported that his company has doubled its UAE manufacturing capacity since the ICV program's inception eight years ago and now exports globally from Abu Dhabi. He believes the latest procurement changes will simplify access to Adnoc’s pipeline for manufacturers and provide greater certainty regarding future demand. Mr. Shehada added, “With their offtake agreements, they’re giving us a commitment to enable us to invest more and be able to confident in our investments.”