The Abu Dhabi National Oil Company (ADNOC) announced a significant increase in its target for in-country value creation through local manufacturing. Aiming to bolster the United Arab Emirates' (UAE's) industrial sector and manufacturing prowess, ADNOC is setting its sights on a target of 90 billion UAE dirhams (US$24. 5 billion) by 2030. This ambitious target represents an escalation from the previous goal of 70 billion dirhams by 2027, which ADNOC successfully surpassed ahead of schedule.
This initiative aligns with ADNOC's expanded In-Country Value (ICV) program, a strategic effort to channel an additional 178 billion dirhams back into the UAE's economy by 2028. The program prioritizes sourcing essential industrial products from local manufacturers, fostering the development of a robust domestic industrial base.
ADNOC's decision to elevate its local manufacturing target stems from several key factors. The company recognizes the importance of economic diversification for the UAE's long-term prosperity. By cultivating a strong domestic manufacturing sector, the UAE can lessen its dependence on oil exports and position itself as a more diversified economic powerhouse.
The initiative is also expected to attract significant foreign and domestic investment. Increased local manufacturing capabilities will make the UAE a more attractive proposition for international investors seeking new ventures. Additionally, domestic businesses will be incentivized to invest in manufacturing ventures as the local demand for industrial products rises.
A core aspect of ADNOC's local manufacturing push is job creation. The program is anticipated to generate a substantial number of high-skilled jobs within the UAE's private sector. This focus on skilled positions aligns with the UAE's broader ambitions to cultivate a knowledge-based economy.
ADNOC's commitment to local manufacturing is also expected to bring about positive developments for the environment. By supporting the domestic production of essential industrial products, ADNOC can potentially streamline supply chains and minimize the environmental impact associated with transportation. This focus on sustainability aligns with the UAE's growing commitment to environmental responsibility.
The announcement by ADNOC signifies a major step forward in the UAE's economic diversification efforts. By prioritizing local manufacturing, ADNOC is laying the groundwork for a more robust, self-sufficient, and sustainable UAE economy.