Local Factories, Global Impact: UAE Rewires Energy Supply

UAE invests in local oilfield factories, cutting import reliance and adding 3,500 skilled jobs across four emirates.

30 May 2025

The United Arab Emirates is adding a fresh chapter to its energy strategy. State oil giant ADNOC and local partners have unveiled a $817m (AED 3bn) investment to build new factories across the country. The move aims to shorten supply chains, cut reliance on imports and create 3,500 skilled private-sector jobs.

Supply disruptions and rising global costs have encouraged the shift. By moving production from Europe and Asia to Abu Dhabi, Dubai, Sharjah and Umm Al Quwain, the UAE plans to meet more of its oilfield needs at home. The new factories will produce pipeline coatings, pressure vessels and specialist fasteners, all vital to the country’s oil and gas operations.

“This investment strengthens the UAE’s industrial capabilities while supporting our growth strategy,” said Yaser Saeed Almazrouei, ADNOC’s executive director for people, commercial and corporate support. “It also creates high-skilled job opportunities for our people.”

The plan promises benefits beyond faster deliveries. Building oilfield equipment locally shields the UAE from volatile markets and allows for designs suited to the Gulf’s harsh climate and complex drilling demands. International technology partners are also setting up production in the UAE, bringing advanced techniques and know-how.

The shift could unsettle established supply patterns. Firms that once served the UAE from abroad may find themselves edged out as local producers expand. But ADNOC seems keen to build not just factories but an industrial base strong enough to anchor its energy ambitions.

As the UAE boosts domestic production and employment, it is also reinforcing its grip on the energy value chain. The country’s latest investment marks a quiet but significant step towards greater economic resilience.