Latest news with #Dh65.7
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Adnoc awards contracts worth Dh65.7 billion in 2025 first half; 400 UAE companies benefit
Nearly 400 local suppliers, contractors and service providers have received contract awards from Adnoc valued at Dh65.7 billion in the first half of 2025 as the company deploys its purchasing power to boost socioeconomic growth, empower businesses and generate long-term value for the nation. The contracts span critical sectors such as drilling, logistics, operational support services, and engineering, procurement and construction (EPC). Adnoc is prioritising local businesses in its procurement to stimulate private-sector growth and strengthen the resilience of national supply chains through its In-Country Value (ICV) programme. Dr Saleh Al Hashmi, Adnoc Director, Commercial & In-Country Value Directorate, said, 'Our contract awards create a ripple effect across the economy, helping us to drive productivity, competitiveness and highly-skilled private sector jobs for local talent. We encourage all our partners and stakeholders to collaborate with us and contribute to the UAE's industrial growth journey.' Among the key beneficiaries of the awards include NMDC Energy, Target Engineering, Al Dhafra Co-operative Society, Arab Development Establishment, Excel Astra Engineering, Robt. Stone, GISCO, and Euro Mechanical & Electrical Contracting. The contract awards reflect Adnoc's commitment to engaging capable national suppliers that can deliver value across its business. Over the next five years, Adnoc plans to channel an additional Dh200 billion ($54.5 billion) into the UAE economy through its ICV programme. The company is also aiming to locally manufacture Dh90 billion ($24.5 billion) worth of products in its procurement pipeline by 2030. To broaden access to its commercial opportunities, Adnoc recently launched the Make it with Adnoc mobile app which provides visibility into the company's purchasing needs. The app enables suppliers, SMEs and entrepreneurs to gain a clear pathway to capitalise on its long-term commercial opportunities. Launched in 2018, Adnoc's ICV programme continues to drive economic and industrial growth for the UAE and create private-sector jobs for Emiratis, with over 17,000 jobs created to date. From established suppliers to emerging entrepreneurs, Adnoc invites all local businesses to capitalise on its procurement pipeline and contribute to the nation's long term prosperity.
Arabian Post
19-05-2025
- Business
- Arabian Post
ADNOC Drives UAE Economy with Dh65.7bn Local Contracts
Abu Dhabi National Oil Company has granted contracts totaling Dh65.7 billion to nearly 400 local suppliers, contractors, and service providers during the first half of 2025. This extensive award reflects ADNOC's ongoing commitment to strengthening the United Arab Emirates' economy through its In-Country Value programme, which aims to bolster domestic industries and national supply chains. The contracts cover a diverse range of sectors vital to ADNOC's operations, including drilling, logistics, operational support services, and engineering, procurement, and construction . This allocation highlights ADNOC's strategic use of procurement as a lever to stimulate private sector growth and enhance local content in the oil and gas value chain. Dr Saleh Al Hashmi, ADNOC's Director of Commercial & In-Country Value Directorate, emphasised the economic impact of these awards, noting that the ICV programme remains a key driver of industrial and economic development in the UAE. He highlighted that awarding such significant contracts to local businesses showcases ADNOC's confidence in the capabilities of domestic suppliers, reinforcing the company's role in fostering sustainable economic diversification. ADNOC's focus on the ICV programme aligns with the UAE government's broader agenda to reduce reliance on imports, enhance technological transfer, and increase employment opportunities for Emiratis within strategic sectors. This approach not only supports the company's operational efficiency but also strengthens the national economy by encouraging the growth of local enterprises. The contracts' distribution across multiple industries also signals ADNOC's intention to develop an integrated supply ecosystem, reducing external dependencies while nurturing innovation and skills development within the country. By investing heavily in local vendors, ADNOC aims to cultivate a competitive and resilient private sector that can sustain long-term industrial progress. Among the major categories, drilling contracts address critical upstream operations, enabling ADNOC to optimise exploration and production activities. Logistics contracts ensure the seamless movement of materials and personnel across ADNOC's extensive infrastructure, which spans land, sea, and air. Operational support services encompass maintenance, technical assistance, and other specialised activities that maintain uninterrupted energy output. EPC contracts are vital for the construction and development of new facilities and infrastructure enhancements, reflecting ADNOC's expansion and modernisation ambitions. These contracts come amid a challenging global energy landscape marked by fluctuating prices and geopolitical tensions. ADNOC's emphasis on domestic supplier engagement provides stability for local companies, ensuring consistent business flow and encouraging further investments in infrastructure, workforce training, and technology upgrades. The scale of contract awards in this period underlines ADNOC's procurement strategy's effectiveness, which mandates rigorous evaluation of suppliers' technical capabilities, financial strength, and adherence to sustainability standards. The inclusion of nearly 400 companies illustrates the depth and breadth of the UAE's industrial base, encompassing both large established firms and small- to medium-sized enterprises . This diversified supplier base contributes to ADNOC's resilience, enabling it to mitigate risks linked to supply chain disruptions while fostering competition that drives quality improvements and cost efficiency. SMEs, in particular, benefit from ADNOC's support through tailored development programmes and easier access to tender opportunities, which promote entrepreneurship and innovation. ADNOC's drive to enhance local content aligns with international trends where national oil companies seek to boost domestic participation in their operations to create broader economic value. The UAE's approach via the ICV programme is seen as a benchmark for regional energy companies aiming to balance economic development with energy security. See also Global Trade Faces Contraction Amid Escalating Tariff Disputes Looking forward, ADNOC plans to maintain and potentially increase its procurement spending with domestic suppliers as it pursues ambitious expansion projects, including upstream development, refining capacity enhancements, and the rollout of low-carbon initiatives. These projects will likely demand further investment in local capabilities, particularly in cutting-edge technologies and sustainable practices. Dr Saleh Al Hashmi also pointed to ADNOC's commitment to integrating sustainability criteria into its procurement decisions. This reflects the company's broader environmental, social, and governance goals, which include reducing carbon emissions and promoting diversity and inclusion within its supply chain. The impact of ADNOC's procurement policies extends beyond economic metrics. By anchoring contract awards to local content goals, the company fosters skills transfer, knowledge sharing, and capacity building within the UAE workforce, addressing the nation's strategic need for human capital development. Private sector stakeholders have welcomed ADNOC's contract awards as a positive signal for business confidence and industrial growth. Several suppliers have reported increased investments in technology and workforce expansion to meet ADNOC's stringent requirements and future demand. These developments mark a continuation of ADNOC's role not just as a global energy producer but also as a catalyst for national economic transformation. Its use of procurement as a policy tool to stimulate the local economy exemplifies how state-owned enterprises can contribute to achieving broader government objectives in economic diversification and industrial sustainability.
Al Etihad
18-05-2025
- Business
- Al Etihad
400 UAE companies benefit from Dh65.7 billion contract awards as ADNOC boosts local economic growth
18 May 2025 17:55 ABU DHABI (WAM)Nearly 400 local suppliers, contractors and service providers have received contract awards from ADNOC valued at Dh65.7 billion in the first half of 2025 as the company deploys its purchasing power to boost socioeconomic growth, empower businesses and generate long-term value for the contracts span critical sectors such as drilling, logistics, operational support services, and engineering, procurement and construction (EPC). The contracts demonstrate how ADNOC is prioritising local businesses in its procurement to stimulate private-sector growth and strengthen the resilience of national supply chains through its hugely successful In-Country Value (ICV) Saleh Al Hashmi, ADNOC Director, Commercial & In-Country Value Directorate, said, 'The award of commercial contracts valued at Dh65.7 billion to a wide range of local suppliers emphasises the extent to which ADNOC's In-Country Value programme continues to propel economic and industrial growth for the UAE."Our contract awards create a ripple effect across the economy, helping us to drive productivity, competitiveness and highly-skilled private sector jobs for local talent. We encourage all our partners and stakeholders to collaborate with us and contribute to the UAE's industrial growth journey.'Among the key beneficiaries of the awards include NMDC Energy, Target Engineering, Al Dhafra Co-operative Society, Arab Development Establishment, Excel Astra Engineering, Robt. Stone, GISCO, and Euro Mechanical & Electrical Contracting. The contract awards reflect ADNOC's commitment to engaging capable national suppliers that can deliver value across its the next five years, ADNOC plans to channel an additional Dh200 billion ($54.5 billion) into the UAE economy through its ICV program. The company is also aiming to locally manufacture Dh90 billion ($24.5 billion) worth of products in its procurement pipeline by broaden access to its commercial opportunities, ADNOC recently launched the Make it with ADNOC mobile app which provides visibility into the company's purchasing needs. The app enables suppliers, SMEs and entrepreneurs to gain a clear pathway to capitalise on its long-term commercial in 2018, ADNOC's ICV programme continues to drive economic and industrial growth for the UAE and create private-sector jobs for Emiratis, with over 17,000 jobs created to established suppliers to emerging entrepreneurs, ADNOC invites all local businesses to capitalise on its procurement pipeline and contribute to the nation's long term prosperity. To learn more about ADNOC's commercial opportunities, visit the company's stand at the Make it in the Emirates Forum, which is taking place from May 19-22 at ADNEC in Abu Dhabi.
Al Etihad
07-05-2025
- Business
- Al Etihad
UAE insurance sector set for 4.9% annual growth rate amid transformation
8 May 2025 00:05 SARA ALZAABI (ABU DHABI)The UAE's insurance market is undergoing a period of transformation, with new dynamics reshaping the market's priorities and growth areas, a top expert told El Hout, CEO of Marsh McLennan covering the UAE, Qatar, Oman, and Egypt, said the market's growth is being driven by 'regulatory changes, technology adoption, changing consumer needs and inflow of international reinsurance capacity.'The UAE, he said, continues to lead in the Middle East in terms of insurance penetration. The total insurance premiums collected in the country amounted to 2.5% of its GDP, as compared to a regional average of 1.5%. Poised for continued innovation and risk diversification over the next five years, the UAE insurance sector 'aspired to expand at a compounded annual growth rate (CAGR) of 4.9% from $14.1 billion to $17.9 billion (Dh65.7 billion) in 2028," El Hout said. 'Market players continue investing in AI and digital solutions while expanding coverage offerings for emerging risks and challenging risks as well the new risks interconnectivity dynamics.'Health insurance remains the fastest-growing segment in the market, outpacing property and casualty (P&C), El Hout said.'This [trend] is driven by the implementation of mandatory health insurance regulations in Abu Dhabi and Dubai, and now boosted by the Northern Emirates. Furthermore, in January 2025, the Dubai Health Authority (DHA) increased the minimum health coverage requirements, further contributing to this growth. The rising utilisation of health insurance programmes ... has also led to increased premium volumes.'Health insurance demand is growing in the corporate and individual markets due to increased competition for employee benefits, broader coverage needs, and shifts toward preventative care in the post-pandemic world, according to a Marsh McLennan UAE companies are also offering custom-made insurance plans to tackle workforce-related challenges - from employee wellness and psychological health to staff turnover, El Hout added. The expert went on to shed light on how the regulatory landscape has evolved significantly for the country's insurance market.'The new mandates around consumer protection, data privacy/protection, money laundering, corporate governance, etc… are set to create more confidence in the market. It would be great to see market consolidations in the future creating players that can deliver more value to the clients and shareholders,' he said. Use of AI, Smart Tech Artificial intelligence and advanced analytics have been enhancing insurance providers' operations, particularly in claims management and fraud detection, El Hout said. 'Some insurers have started leveraging AI-driven platforms to automate claims processing, which reduces turnaround times and improves customer experiences. Additionally, predictive analytics is being gradually deployed to identify suspicious claim patterns and prevent fraudulent activity,' he the sector embraces digitalisation, however, new and 'mutating' risks are shaping the business strategies, El Hout said. 'Cybersecurity threats, supply chain vulnerabilities, and climate-related exposures are now at the forefront, prompting the creation of specialised products and risk assessment/mitigation models and solutions. The adoption of digital assets, new technologies and remote workforces has also introduced new risk considerations.'El Hout stressed the importance of constant reinvestment in technology and talent to improve the delivery of services and offer agile, customer-centric solutions. 'Continued investments in technology as well as in human capital are the key to success,' he said.
Khaleej Times
29-04-2025
- Business
- Khaleej Times
UAE to post surplus as lower oil prices strain GCC budgets in 2025
Lower oil prices are set to challenge fiscal balances across the GCC, with most economies facing wider budget deficits in 2025, according to Emirates NBD, a leading GCC bank. However, the UAE is expected to buck the trend, maintaining a budget surplus, albeit smaller than previously forecast, bolstered by its diversification efforts and prudent fiscal policies. The broader implications of falling oil prices underscore the urgency of economic diversification across the region, with the UAE serving as a model for resilience. Emirates NBD has revised its 2025 oil price forecast to an average of $68 per barrel, down from a previous estimate and below the GCC's weighted average fiscal breakeven oil price of $74 per barrel (excluding Qatar). This downgrade signals deeper deficits for most GCC economies, with the bank now projecting a weighted average budget deficit of 3.6 per cent of GDP in 2025, compared to just 1 per cent in 2024. The UAE, however, remains a standout, with a forecasted surplus of 1.8 per cent of GDP, down from an earlier projection of 2.7 per cent and a 2024 surplus of 3.4 per cent. Daniel Richards, senior economist at Emirates NBD, emphasised the region's resilience despite fiscal pressures. 'The negative impact on non-oil growth will be limited in the near term, thanks to diversification-focused investment programs,' he said. 'Lower oil prices highlight the critical role of these strategies and recent tax reforms, such as the introduction of VAT and corporate income tax. Low debt levels across the GCC also provide substantial borrowing capacity to manage deficits.' The UAE's fiscal strength is underpinned by its diversified economy and strategic investments in sectors like tourism, technology, and renewable energy. According to the UAE's Federal General Budget Annual Report, 2024 revenues reached Dh65.7 billion ($17.9 billion), with expenditures at Dh 64.1 billion ($17.5 billion), yielding a surplus of Dh1.6 billion ($436 million). For 2025, the UAE cabinet has approved a balanced federal budget of Dh71.5 billion ($19.5 billion) for both revenues and expenditures, reflecting an 11.5 per cent increase in spending. While the federal budget represents only a portion of total spending —individual emirates like Abu Dhabi and Dubai maintain their own budgets— it signals robust government investment and revenue collection efforts. Highlighting the UAE's proactive approach, economists argue that the Arab world's second-largest economy's ability to maintain a surplus, even with lower oil prices, reflects its success in reducing oil dependency. 'Investments in non-oil sectors, coupled with tax reforms, have created a buffer against oil market volatility,' one analyst said. In contrast, Saudi Arabia faces a steeper challenge. Emirates NBD projects a 2025 budget deficit of 6.0 per cent of GDP, equivalent to $66.9 billion, up from 5.2 per cent previously and significantly higher than the Saudi government's 2.3 per cent forecast. With a breakeven oil price of $97.5 per barrel, far above current levels, and ongoing production cuts, Saudi Arabia's fiscal strain is evident. Total revenues are expected to fall to $310.4 billion in 2025 from $335.7 billion in 2024, driven by lower oil income, despite growth in non-oil revenues. The government's share of Aramco's dividend, a key revenue source, is projected to drop from $124 billion in 2024 to $85.3 billion in Arabia's spending is forecasted at $377.3 billion, exceeding the government's $342.7 billion projection. While current expenditure dominates at 86 per cent of the budget, major projects like NEOM and Vision 2030 initiatives are largely funded through the Public Investment Fund, softening the budget's exposure to spending cuts. 'Saudi Arabia's fiscal outlook remains challenging, but its non-oil revenue growth and alternative funding mechanisms provide some flexibility,' said Karen Young, a senior fellow at the Middle East Institute, in an interview with Reuters. The GCC's reliance on oil underscores the need for sustained diversification. The UAE's success in fostering non-oil growth—through initiatives like Dubai's D33 economic agenda and Abu Dhabi's green energy projects — offers a blueprint. 'The UAE's diversified revenue streams and low debt levels position it to weather oil price shocks better than its neighbors,' said Jim Krane, an energy expert at Rice University's Baker Institute, in a statement to regional publication.
