ADNOC promises 40 percent shorter tenders and reveals what it will buy in 2027 and 2028

Abu Dhabi National Oil Company (Adnoc) has unveiled more than Dh60 billion ($16.3 billion) in new local manufacturing opportunities through 2030, aiming to replace imports with domestic production to enhance supply chain resilience. The announcement was made on Sunday at the second Make it with Adnoc Forum in Abu Dhabi, held just prior to the Adipec energy conference. Alongside the financial commitment, the state energy giant revealed a comprehensive overhaul of its procurement processes, designed to cut supplier onboarding time by up to 80 percent and shorten tendering cycles by 40 percent. The initiative targets the localization of more than 200 essential products and critical spare parts, spanning sectors from drilling equipment to heavy machinery. Dr Sultan Al Jaber, Managing Director and Group Chief Executive of Adnoc, who also serves as the Minister of Industry and Advanced Technology, stated that the company is inviting firms to build capabilities in the United Arab Emirates that will serve the nation’s industry for years to come. He emphasized that the goal is to ensure locally manufactured products meet international standards for quality and pricing, allowing UAE manufacturers to compete effectively in overseas markets. The forum served as a platform to connect government support with the practical needs of local manufacturers, bringing together industry insiders, investors, and officials to discuss scaling domestic output. The push for greater self-sufficiency aligns with broader national objectives outlined in Operation 300bn, a strategy launched by the Ministry of Industry and Advanced Technology in 2021. This operation aims to raise the industrial sector’s contribution to the national gross domestic product from Dh133 billion to Dh300 billion by 2031. Key initiatives supporting this goal include the National In-Country Value (ICV) Program, which seeks to localize supply chains and advance Emiratisation, and Factory Forward UAE, a platform consolidating industrial technology transformation programs. Policymakers recognize that while government support aids production increases, equipping factories with modern technology is vital for producing higher-quality goods and maintaining competitiveness. Omar Abdulla Al Nuaimi, Adnoc’s Group Chief for Commercial and In-Country Value, detailed the specifics of the new opportunities during the forum. He noted that the package covers drilling and upstream activities, operations, and projects. Specific items targeted for local production include electrical submersible pumps, oil country tubular goods, seamless pipes, compressors, catalysts, and chemicals. Al Nuaimi highlighted that Adnoc has already achieved Dh80 billion of its Dh90 billion local manufacturing target for 2030. This progress has supported the localization of more than 130 products and led to the establishment or expansion of 95 factories. He described the new offerings not merely as individual products, but as opportunities for partnerships and entire value chains. Transparency is a central pillar of the new strategy. A QR code displayed at the forum provided attendees with access to Adnoc’s planned tenders for 2027 and 2028. These plans include downhole completion, drilling fluids, cementing services, turnaround inspections, and maintenance of compressors, turbines, and pumps. Adel Yafei, Senior Vice President of Group Commercial Operations and Execution, stated that this level of visibility allows suppliers to plan capacity and invest with confidence. He noted that Adnoc has already awarded more than 8,000 requisitions, contracts, and purchase orders to over 1,500 partners in 2026 so far, along with 10 mega engineering, procurement, and construction (EPC) projects. Procurement reforms aim to streamline interactions between Adnoc and its suppliers. Starting November 1, commercial and ICV offers will be evaluated simultaneously in a single assessment weighted 70 percent toward commercial terms and 30 percent toward ICV. This change replaces the previous bid-matching approach, encouraging suppliers to submit their most competitive offers immediately. Contracts valued below Dh2 million will be exempt from ICV requirements, while those under Dh50 million will no longer face ICV retention obligations. Additionally, prequalification will be removed for 60 percent of service categories, and documentation requirements will be halved. Supplier registration, which previously took weeks, can now be completed within a day using artificial intelligence to verify documents via a consolidated platform. Yafei clarified that the 40 percent reduction in tendering time refers to efficiency gains within Adnoc’s internal processes, not a reduction in the time suppliers have to prepare technical and commercial bids. Bidding periods will remain aligned with market requirements, considering project criticality, scope complexity, and market capacity. For EPC tenders, the most competitive bid meeting benchmark targets will receive top priority. For unit-rate contracts, negotiations will focus on market medians rather than outlier rates. Yafei stressed that Adnoc expects partners to maintain high safety, health, environment, and ICV contributions, noting that investing in Emirati talent is a non-negotiable priority. The Ministry of Industry and Advanced Technology supports these efforts through initiatives like the Make it in the Emirates event, scheduled for May next year. This upcoming gathering will provide a platform to measure progress in investment, partnerships, factory expansion, and job creation. Osama Amir Fadhel, Assistant Undersecretary for Industrial Accelerators at the Ministry, stated that the reduced bureaucratic burden is integral to current government operations. He suggested that the 30 percent local content weighting in Adnoc’s evaluations could create a ripple effect throughout the energy sector, potentially serving as a model for other major buyers. The collaboration involves strategic partners such as Emirates Development Bank, the Abu Dhabi Investment Office, and AD Ports, which aim to assist companies in moving from initial opportunities to operational factories. Adnoc’s ICV program, launched in 2018, has channeled more than Dh307 billion back into the national economy. Annual contributions have risen from Dh18 billion in 2018 to Dh65 billion by the end of the recent reporting period. The company has signed approximately Dh80 billion worth of offtake agreements directed at local manufacturing. At the first edition of the forum in May, Adnoc announced Dh200 billion in planned project awards for the 2026-2028 period. The current measures seek to address disruptions in global energy supply chains caused by factors ranging from the pandemic to regional conflicts, reinforcing the importance of a robust domestic industrial base.