UAE manufacturing thrives with ICV

UAE

The UAE’s National In-Country Value (ICV) Program has kick-started a revolution in localisation and sparked a new era of economic returns for domestic manufacturers and SMEs. In this context, ADNOC, which has been a frontrunner in the UAE’s localisation efforts for years, is taking its ICV strategy to new heights.

Large-scale government initiatives in the UAE are propelling the country’s economy forward. Along with We Are the UAE 2031 and UAE Centennial 2071, a key pillar of this expansion is Operation 300bn, an industrial strategy introduced in 2021 by Vice-President and Prime Minister Mohammed bin Rashid Al Maktoum, which aims to boost the industrial sector’s annual contribution from AED 133 billion [USD 35.9 billion] to AED 300 billion [USD 81 billion] by 2031 through support programmes for SMEs and the adoption of Fourth Industrial Revolution applications.

Progress since then has been steady. The programmes had contributed around AED 200 billion [USD 54 billion] to the economy by end-2024, and the UAE’s GDP is on track to grow by 5.1% in 2025. Complementing this push, the government launched Make It In The Emirates in 2021, a branding and manufacturing campaign designed to elevate the global presence of UAE-made products while raising the capabilities of domestic manufacturers to top international standards.

NATIONAL CAMPAIGN: However, the cornerstone of the UAE’s economic transformation efforts is the National In-Country Value (ICV) Program, launched at a federal level in 2021 and currently being implemented under the supervision of the Ministry of Industry and Advanced Technology. Designed to localise industrial value chains, boost productivity, increase exports and attract investment, the initiative is intended to strengthen the country’s industrial foundations. Companies certified under the ICV framework gain key advantages, including eligibility for government grants and priority access to tenders from major state-backed entities such as ADNOC, ADQ and Mubadala Investment Company.

Illustrating the appeal of localisation programmes in the Middle East, Sam Norris, managing director of Asia Waterjet Equipment, told The Energy Year, “By offering local content, whether it’s here in UAE, through the ICV programme, or in Saudi through IKTVA [In-Kingdom Total Value Add], we feel that we are highly valued by contractors. They see that we are right beside them.” The programme is also sparking interest among global manufacturers, with many showing interest in setting up shop in the UAE. “Many international OEMs and EPC companies have started to localise due to the ICV,” Raphael Torrano, managing director of WEG Middle East FZE, told The Energy Year.

Since its launch, ICV has driven a steady increase in domestic procurement. Spending by national companies on domestic goods and services grew around 25% per year between 2021-2023, and the programme redirected AED 48 billion [USD 13 billion] to the domestic economy in the first half of 2024 alone. The initiative has also helped drive significant increases in investments, with disbursements by participating companies surging by 20% year-on-year in H1 2024 to reach AED 205 billion [USD 55.4 billion]. ICV has also had a notable social impact through the creation of new jobs, with the number of Emiratis employed in participating companies rising to 17,000 in H1 2024 from just over 6,000 in 2020 .

LOCALISATION CHAMPION: ADNOC has long been a leading force in the UAE’s industrial development and diversification, and the company launched its own in-country value programme in 2018 , three years ahead of the government’s national initiative. Since then, it has generated AED 242 billion [USD 65.3 billion] in economic value and created employment for 17,000 Emiratis, including 5,500 private-sector jobs in 2024 alone . ADNOC has also significantly increased its support for domestic manufacturers of industrial products, having more than tripled its spending with such companies since 2021. Sameer Mohammed, CEO of Ocean Oilfield Integrated Solutions, points to ADNOC’s localisation efforts as a key driver of his company’s business: “Since our equipment is made in Abu Dhabi, we have enjoyed a lot of support from ADNOC because we can contribute to their ICV targets.”

ADNOC has been continuing to take significant steps to maintain the momentum achieved. By May 2024, the company had surpassed its 2027 target spend of AED 70 billion [USD 18.9 billion] on domestic products and set a new goal of reaching AED 90 billion [USD 24.3 billion] by 2030, and in November, the company inaugurated eight new manufacturing facilities, bringing its total since the launch of Make It In The Emirates to 33. Looking ahead, the company has announced plans to inject AED 200 billion [USD 54 billion] into the economy by 2030.

Read our latest insights on:

• UAE