Adnoc, ADQ, NMDC, Edge + more join localization push

Local + int’l team up: The second day of the Make it in the Emirates forum saw UAE players bring in international names to double down on their localization drive in sectors like pharma, chemicals, and EPC. Big funding commitments also came on day two, with Ta’ziz locking in USD 28.5 bn in agreements.

REMEMBER- The UAE is aiming to bring local procurement prospects to AED 180 bn (USD 49 bn) over the next 10 years, officials said earlier at the event. The target sets the backdrop for a wave of long-term supply agreements across chemicals, defense, and manufacturing.

Big ticket commitments for chemicals

Against that push, Ta’ziz — Adnoc and ADQ’s chemicals JV in Ruwais — locked in USD 28.5 bn in long-term sales, feedstock, and offtake agreements, with terms spanning five to 25 years, according to a press release.

The agreements were made with both local and global firms as the UAE pushes to localize chemicals production and strengthen supply chain resilience here at home, with Ta’ziz Industrial Chemicals Zone set to produce 4.7 mtpa once completed in 2028.

On the sales front:

• Methanol will be sold to Adnoc and Switzerland-based natgas producer Proman, while caustic soda will go to Emirates Global Aluminium and other international buyers;
• Ethylene dichloride and vinyl chloride monomer orders have been placed with Mitsubishi Corporation, Mitsui & Co., and India’s Sanmar Group, alongside polyvinyl chloride volumes with Tricon and Vinmar.

As for offtake: Adnoc Gas will supply natural gas under a USD 5 bn+, 25-year agreement (pdf) for Ta’ziz’s methanol plant ahead of its planned 2029 start-up. Meanwhile, Abu Dhabi salt producer Sama Salt will supply T’aziz with salt for its PVC complex under a 20-year agreement.

Lofty targets for EPC

Abu Dhabi-based engineering, procurement, and construction firm NMDC Energy plans to increase the share of local inputs in products to 60%, up from 25%, along with localizing more products like valves and artificial pumps, CEO Ahmed Al Dhaheri told CNBC Arabia (watch, runtime: 4:22).

The company is banking on strong local demand to “replenish” its backlog — currently standing at AED 40 bn — this year, with Al Dhaheri citing Adnoc’s recent announcement of AED 200 bn worth of project awards over the next three years. Some 76% of the firm’s revenues come from the UAE market currently, though international expansion — including in markets like the GCC, Taiwan, and India — is still on the table, he added.

It also expects project delivery to remain on track despite regional disruptions, which hit its 1Q net income, leading to a 63% y-o-y decline.

On the pharma front

The push into pharma manufacturing is getting deeper: UAE-based pharma manufacturer LifePharma is moving up the value chain, launching an AED 100 mn gene therapy push via new biotech spin-off Equigene Therapeutics, according to a press release. The platform will target rare inherited blood disorders including hemophilia and sickle cell disease — areas where access to curative treatments remains limited in the region.

Timeline: The group is aiming for a three- to five-year path to market, leaning on the UAE-India healthcare corridor and a scalable manufacturing model.

ICYMI- LifePharma earlier this week signed an MoU with Abu Dhabi Ports Group to build an AED 700 mn manufacturing platform in Kezad, targeting vaccines, oncology, and advanced injectables as it ramps up domestic pharma production.