UAE announces $49bn industrial localisation drive

• Make It In The Emirates initiative
• Push to reduce reliance on imports
• Contribution to GDP up 70% since 2021

The UAE has unveiled AED180 billion ($49 billion) in industrial procurement opportunities to boost domestic manufacturing and reduce reliance on imports, as part of its “Make it in the Emirates” localisation drive, officials said.

The fifth edition of the initiative, taking place this week in Abu Dhabi, offers opportunities over the next decade to localise more than 5,000 products across sectors critical to economic, food and healthcare security, the UAE state-run Wam news agency reported, quoting UAE minister of industry and advanced technology Dr Sultan bin Ahmed Al Jaber.

He said the industrial sector’s contribution to UAE GDP is AED200 billion, up 70 percent since 2021, while industrial exports climbed to AED262 billion, including AED92 billion in advanced industrial exports.

Ta’ziz, a joint venture between state-backed oil giant Abu Dhabi National Oil Company (Adnoc) and sovereign wealth fund ADQ, struck long-term agreements with local companies to back the country’s chemicals industry at the event on Tuesday. 

These deals include offtake, feedstock and sale contracts with terms of five to 25 years across its chemicals portfolio, valued at AED105 billion, the joint venture said in a statement.

The agreements were signed with Adnoc, Proman, Emirates Global Aluminium (EGA), Mitsubishi Corporation, Mitsui & Co., Sanmar Group, Tricon and Vinmar for a range of chemicals.

Ta’ziz will be the first major supplier of 200,000 dry metric tonnes per year of domestically produced caustic soda for EGA’s Al Taweelah alumina refinery in Khalifa Economic Zones Abu Dhabi.

Adnoc Gas secured a 25-year feedstock agreement to supply natural gas to the Ta’ziz methanol project valued at over AED18 billion. 

Ta’ziz also agreed a 20-year salt supply agreement with Abu Dhabi-based Sama Salt to support production at its PVC complex.

• Push for homegrown pharma factories gains urgency in war
• Conflict accelerates shift to local production in UAE
• UAE’s $11bn manufacturing investment aims to cut oil reliance

The Ta’ziz industrial chemicals zone, located within the Al Ruwais Industrial City in western Abu Dhabi, is set to produce 4.7 million tonnes per annum (mtpa) of chemicals once construction is completed in 2028. This includes a 1 mtpa ammonia plant, a 1.8 mtpa methanol plant and 1.9 mtpa of marketable products from its integrated polyvinyl chloride complex.  

Separately, the state-backed Tawazun Council for Defence Enablement and US defence company Lockheed Martin signed an agreement to establish a cybersecurity Centre of Excellence to strengthen the country’s national capabilities in the digital domain.

Adnoc said on Monday that it will award contracts worth AED200 billion during the next two years to support its upstream and downstream expansion.

Make it in the Emirates 2026 is in Abu Dhabi from May 4 to 7.