The Rules for EPC Procurement in the UAE Just Changed
In May 2026, ADNOC launched its Industrial Resilience Programme. It came with AED 200 billion (about USD 55 billion) in project awards planned for 2026 to 2028, the first major tranche of a USD 150 billion five-year capex plan (The National).
The headline for EPC contractors is simple. ADNOC now expects locally made products first. For anyone building or bidding on an ADNOC project, that changes how piping packages are planned, sourced and scored.
This guide explains the new initiatives in plain terms and what they mean for pipes, fittings, flanges and valves.
What ADNOC Announced
The programme has four initiatives that matter most for contractors and suppliers:
| Initiative | What it does | What it means for EPC piping buyers |
| Local+ | EPC contractors must source from a list of more than 70 ADNOC-approved national manufacturers | Check the Local+ list before tendering any package a listed manufacturer can supply |
| ICV+ | Contractors earn extra In-Country Value credit for buying locally | Local sourcing now improves your commercial score, not just compliance |
| ADNOC Multiplier | Helps manufacturers raise the local content inside their products | Expect more UAE-made components to qualify over time |
| Build-to-Demand | Guaranteed offtake tied to set volumes and prices | More UAE capacity for high-demand items in the coming years |
The programme builds on ADNOC’s In-Country Value (ICV) initiative, launched in 2018. According to The National, ICV has produced AED 80 billion in local manufacturing agreements since 2022 and AED 4.5 billion in new factory investment.
Why It Happened Now
Supply-chain resilience is no longer a slogan in the Gulf. Shipping through the Strait of Hormuz has been severely disrupted through 2026. Al Jazeera reported in August that UAE port calls had fallen 69%, from 78 a day to 24 (Al Jazeera).
ADNOC’s commercial leadership has said openly that earlier ICV work helped keep operations running through that disruption. For EPC teams, the lesson is practical: materials already inside the UAE are worth more than materials on a vessel.
What Local+ Means for a Piping Package
Piping is rarely one purchase. A typical package mixes items that are made locally, items held in UAE stock and items that must come from overseas mills. Local+ affects each differently.
- Items made by a Local+ manufacturer. Here the rule is clear: check the list first and source locally where the product meets the technical requirement.
- Items held in UAE stock. Pipe, fittings and flanges already warehoused in the UAE avoid sea freight risk and support delivery dates. Traders and stockists also contribute in-country value through local warehousing, local staff and local services such as cutting, bevelling and testing.
- Items only available from approved overseas mills. Exotic alloys, large-diameter LSAW and some special forgings still come from abroad. For these, order early and plan for longer, less predictable shipping.
The practical move is to split the material take-off (MTO) into these three groups at the very start of procurement, not after the first round of quotes.
A 2026 Piping Procurement Checklist for EPC Teams
- Split the MTO into locally made, UAE stock and import-only items.
- Check the Local+ list for every category before issuing the RFQ.
- Ask every bidder for a valid ICV certificate and include it in the commercial evaluation.
- Confirm mill approval. ADNOC and other operators approve manufacturers, not just traders. Ask which mill made the material and whether it is on the project’s approved vendor list.
- Ask what is physically in stock today, with heat numbers and quantities, rather than “available”.
- Lock in documents early: EN 10204 3.1 or 3.2 mill certificates, third-party inspection (TPI) requirements and the manufacturer’s data book format.
- Build buffer into import lead times. Routing, port congestion and war-risk surcharges can change quickly.
- Consolidate. One supplier who can bundle pipe, fittings, flanges and accessories reduces the number of shipments, inspections and paper trails to manage.
For the full step-by-step process from MTO to site delivery, see our complete guide to piping material procurement for EPC projects.
What This Means for Saudi Projects
Saudi Aramco runs its own localisation programme, IKTVA (In-Kingdom Total Value Add). The logic is the same as ADNOC’s ICV: operators reward suppliers who keep value, stock and jobs in the country. Contractors working across both markets should plan for two separate local-content scorecards.
How JSS Pipes Supports EPC Contractors
JSS Pipes holds stock in the UAE and works with EPC procurement teams on project packages for oil and gas, petrochemical and power projects. Our project supply division can:
- review your MTO and flag what we hold in UAE stock today
- supply pipes, forged fittings and flanges and buttweld fittings as one consolidated package
- provide EN 10204 3.1 / 3.2 certificates and coordinate third-party inspection
- offer in-house cutting, bevelling and testing to add local value
Learn more about our piping supply for EPC contractors, or send us your MTO for a stock check.
FAQs
What is ADNOC Local+? Local+ is part of ADNOC’s Industrial Resilience Programme, launched in May 2026. It requires EPC contractors to source from a list of more than 70 ADNOC-approved UAE manufacturers.
What is ICV+? ICV+ gives contractors additional In-Country Value credit when they buy from local manufacturers.
How much is ADNOC spending on projects from 2026 to 2028? ADNOC plans AED 200 billion (about USD 55 billion) in project awards over 2026 to 2028, according to The National.
Do traders and stockists count toward ICV? In-Country Value looks at how much spending, workforce and investment stays in the UAE. Suppliers with UAE warehouses, staff and services contribute, but the score depends on each company’s ICV certificate.What does an EPC contractor do in oil and gas? An EPC contractor handles engineering, procurement and construction of a facility under one contract. Procurement includes buying all piping materials to the project specification and approved vendor list.
