Adnoc and Emerson have partnered to increase oil and gas manufacturing in the United Arab Emirates

Emerson announced on Monday that the arrangement will cover the company's current and future manufacturing capacities for valves, programmable logic controllers, and machine condition monitoring, all of which offer a comprehensive view into the machinery's well-being.

“We are ready to work with investors and suppliers to enable them to set up, or expand, manufacturing in the UAE and we invite local and business partners to grasp the significant opportunities this will create,” Saleh Al Hashmi, commercial and In-Country Value director of Adnoc, stated.

He noted that as part of the Make it in the Emirates programme, Adnoc has identified Dh70 billion ($19.06bn) worth of products that may be manufactured locally. According to research firm Frost & Sullivan, the oil and gas automation industry is expected to develop at a CAGR of 7.5% between 2018 and 2025, reaching $24.6 billion by that year. To achieve its goal of becoming a worldwide industrial centre by 2031, the United Arab Emirates (UAE) introduced its industrial strategy, "Operation 300bn," last year. By increasing output in 11 priority sectors, bolstering the growth of national industries, attracting foreign investment, modernising legislation, and ensuring the availability of dedicated financing for local industrial companies, the 10-year plan aims to increase the industrial sector's contribution to the country's gross domestic product from Dh133bn in 2021 to Dh300bn in 2031. Adnoc inked contracts worth up to Dh35bn with 25 firms last week to encourage investment in domestic production of essential goods such pressure vessels, compressors, and pipeline inspection gauges.

UAE leaders announce plans to boost local manufacturing “We are delighted to partner with Adnoc to explore avenues and leverage our existing local manufacturing of equipment in the UAE, and we look forward to contributing to the development of the energy sector in the nation,” Vidya Ramnath, president of Emerson Middle East and Africa, stated.

Emerson, situated in the United States, provides automation solutions to help process, hybrid, and discrete manufacturers enhance operations, safeguard employees, decrease emissions, and meet their sustainability objectives. Investing Dh600bn in clean and renewable energy over the next three decades is part of the United Arab Emirates' (UAE) strategy to increase oil production to 5 million barrels per day by 2030 and achieve carbon neutrality by 2050. The Emirates are developing a strategy to become a leading exporter of hydrogen and capitalise on the growing demand for this clean energy source. In the future years, as economies and industries transition to a low-carbon world to prevent climate change, hydrogen, which can be produced from both renewable energy and natural gas, is projected to play a vital role. It can be found in a wide range of colours, from blue and green to grey. Hydrogen in the blue and grey range is created using natural gas, while green hydrogen is obtained through electrolysis of water. According to Fitch Solutions, the value of the worldwide hydrogen market will increase from $129 billion in 2017 to $183 billion in 2023.