ADNOC Drives UAE Economy with Dh65.7bn Local Contracts
The contracts cover a diverse range of sectors vital to ADNOC's operations, including drilling, logistics, operational support services, and engineering, procurement, and construction . This allocation highlights ADNOC's strategic use of procurement as a lever to stimulate private sector growth and enhance local content in the oil and gas value chain.
Dr Saleh Al Hashmi, ADNOC's Director of Commercial & In-Country Value Directorate, emphasised the economic impact of these awards, noting that the ICV programme remains a key driver of industrial and economic development in the UAE. He highlighted that awarding such significant contracts to local businesses showcases ADNOC's confidence in the capabilities of domestic suppliers, reinforcing the company's role in fostering sustainable economic diversification.
ADNOC's focus on the ICV programme aligns with the UAE government's broader agenda to reduce reliance on imports, enhance technological transfer, and increase employment opportunities for Emiratis within strategic sectors. This approach not only supports the company's operational efficiency but also strengthens the national economy by encouraging the growth of local enterprises.
The contracts' distribution across multiple industries also signals ADNOC's intention to develop an integrated supply ecosystem, reducing external dependencies while nurturing innovation and skills development within the country. By investing heavily in local vendors, ADNOC aims to cultivate a competitive and resilient private sector that can sustain long-term industrial progress.
Among the major categories, drilling contracts address critical upstream operations, enabling ADNOC to optimise exploration and production activities. Logistics contracts ensure the seamless movement of materials and personnel across ADNOC's extensive infrastructure, which spans land, sea, and air. Operational support services encompass maintenance, technical assistance, and other specialised activities that maintain uninterrupted energy output. EPC contracts are vital for the construction and development of new facilities and infrastructure enhancements, reflecting ADNOC's expansion and modernisation ambitions.
These contracts come amid a challenging global energy landscape marked by fluctuating prices and geopolitical tensions. ADNOC's emphasis on domestic supplier engagement provides stability for local companies, ensuring consistent business flow and encouraging further investments in infrastructure, workforce training, and technology upgrades.
The scale of contract awards in this period underlines ADNOC's procurement strategy's effectiveness, which mandates rigorous evaluation of suppliers' technical capabilities, financial strength, and adherence to sustainability standards. The inclusion of nearly 400 companies illustrates the depth and breadth of the UAE's industrial base, encompassing both large established firms and small- to medium-sized enterprises .
This diversified supplier base contributes to ADNOC's resilience, enabling it to mitigate risks linked to supply chain disruptions while fostering competition that drives quality improvements and cost efficiency. SMEs, in particular, benefit from ADNOC's support through tailored development programmes and easier access to tender opportunities, which promote entrepreneurship and innovation.
ADNOC's drive to enhance local content aligns with international trends where national oil companies seek to boost domestic participation in their operations to create broader economic value. The UAE's approach via the ICV programme is seen as a benchmark for regional energy companies aiming to balance economic development with energy security.
See also Global Trade Faces Contraction Amid Escalating Tariff Disputes
Looking forward, ADNOC plans to maintain and potentially increase its procurement spending with domestic suppliers as it pursues ambitious expansion projects, including upstream development, refining capacity enhancements, and the rollout of low-carbon initiatives. These projects will likely demand further investment in local capabilities, particularly in cutting-edge technologies and sustainable practices.
Dr Saleh Al Hashmi also pointed to ADNOC's commitment to integrating sustainability criteria into its procurement decisions. This reflects the company's broader environmental, social, and governance goals, which include reducing carbon emissions and promoting diversity and inclusion within its supply chain.
The impact of ADNOC's procurement policies extends beyond economic metrics. By anchoring contract awards to local content goals, the company fosters skills transfer, knowledge sharing, and capacity building within the UAE workforce, addressing the nation's strategic need for human capital development.
Private sector stakeholders have welcomed ADNOC's contract awards as a positive signal for business confidence and industrial growth. Several suppliers have reported increased investments in technology and workforce expansion to meet ADNOC's stringent requirements and future demand.
These developments mark a continuation of ADNOC's role not just as a global energy producer but also as a catalyst for national economic transformation. Its use of procurement as a policy tool to stimulate the local economy exemplifies how state-owned enterprises can contribute to achieving broader government objectives in economic diversification and industrial sustainability.
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