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Adnoc to spend $54.45bn on project awards in 2026-28

4 May 2026

Abu Dhabi National Oil Company (Adnoc) has announced plans to spend AED200bn ($54.45bn) on new project awards between 2026 and 2028, as the state energy enterprise looks to accelerate delivery of its growth strategy.

Sources who attended the Make it with Adnoc Forum on 3 May – where the announcement was made – told MEED that the Abu Dhabi energy giant plans to allocate the majority of its 2026-28 capital expenditure (capex) budget, AED140bn ($38.12bn), to upstream oil and gas projects, with downstream projects receiving the remaining AED60bn ($16.33bn).

In November, Adnoc’s board of directors approved a five-year business plan and capex budget of $150bn (AED551bn) for the 2026-30 period.

The Make it with Adnoc Forum on 3 May was held a day ahead of the UAE government’s Make it in the Emirates Forum, which runs from 4-6 May in Abu Dhabi. It also came just two days after the UAE’s exit from Opec and the Opec+ alliance.

Alongside its capex plans, Adnoc also announced the addition of 70 local manufacturers to its Local+ procurement and suppliers list, encouraging engineering, procurement and construction (EPC) contractors in Abu Dhabi’s energy sector to support them.

The Local+ initiative, under Adnoc’s In-Country Value (ICV) localisation programme, “is aimed at ensuring that Made in the Emirates products are first-choice across Adnoc’s project delivery, supporting the growth of local manufacturers”, the Abu Dhabi energy giant said in its statement.

Make it in the Emirates

At the Make it in the Emirates Forum on 4 May, Adnoc launched its Industrial Resilience Programme, introducing five initiatives that it said “will strengthen UAE supply chains, accelerate local manufacturing, reinforce business continuity capabilities and develop sustainable industrial capacity across strategic sectors”.

The five core initiatives are:

  • An enhanced ICV model that moves beyond one-size-fits-all procurement to fit-for-purpose award strategies that prioritise investment value, manufacturing depth and workforce development.
  • Local+, which requires Adnoc EPC contractors to prioritise Made in the Emirates products from approved national manufacturers that meet Adnoc’s technical and qualification standards, across defined priority categories, and are commercially competitive.
  • ICV+, which provides a top-up to ICV credit for purchases from local manufacturers, reflected in both Adnoc project and EPC contractor ICV certificates, to encourage sourcing from national suppliers rather than overseas.
  • An Adnoc Multiplier tool to help national manufacturers increase the locally produced content in their final products, maximising ICV impact and strengthening local supply chains.
  • A build-to-demand initiative that provides manufacturers with long-term demand visibility and commitment to establish or expand local production of critical industrial products supporting Adnoc’s projects and core operations. “The initiative covers strategic products essential to business continuity and supply-chain resilience,” Adnoc said.

“The Industrial Resilience Programme is part of Adnoc’s successful ICV programme launched in 2018 and reinforces Adnoc’s support for Make it in the Emirates,” the company said in its 4 May statement.

Adnoc said it is progressing its target to locally manufacture $24.5bn-worth of products by 2030, spanning more than 150 high-priority industrial products across its value chain, including drilling equipment, process chemicals, valves, oil country tubular goods and other equipment.

The state energy giant said it has signed local manufacturing agreements with UAE and international companies worth AED80bn ($21.78bn) since 2022. In addition, Adnoc’s contractors and other service providers have invested AED4.5bn ($1.22bn) in new factories and advanced manufacturing capabilities across the country.

“Building on these achievements, Adnoc is set to drive AED220bn (about $60bn) into the UAE economy over the next five years through the ICV programme,” it added.

ALSO READ: Adnoc builds long-term oil and gas production potential
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Indrajit Sen

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