Emirates Global Aluminium (EGA), the largest industrial company in the UAE outside oil and gas, has identified hundreds of millions of dirhams of annual procurement spend on imported goods that the company believes could be manufactured locally, contributing to the achievement of the UAE’s Operation 300bn industrial growth strategy, and growing the national economy.
The opportunities are for general materials, industrial equipment and spare parts that are commonly required across industries but are not currently manufactured in sufficient volume or at all in the UAE, a statement issued by EGA said.
EGA’s drive to further localise the procurement of materials is in line with Operation 300bn, the UAE’s strategy to more than double the size of its industrial sector by 2031 and Make it in the Emirates.
EGA’s procurement spend totalled over AED 17 billion in 2021, with 46 per cent supplied by local companies. Its largest expenditures are on raw materials, some of which can only be produced in countries with a natural resource endowment absent in the UAE.
Last year, EGA joined the Ministry of Industry & Advanced Technology’s In-Country Value programme, which aims to redirect public and private procurement of products and services to the local economy. EGA prioritises local suppliers whenever they are commercially-competitive and meet the company’s quality and sustainability requirements.
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “At EGA we aim to double our absolute contribution to the economy of the UAE by 2040, and local procurement is part of that. We procured over AED 8 billion of goods and services in the UAE last year. We want to stimulate the development of new manufacturing in the UAE to meet more of our demand to boost this local spending further.”
The opportunities EGA has identified include industrial filtration and purification equipment, structural materials and pipes, metal tapping accessories and casting moulds, valves, electrical equipment such as sockets and wires, gaskets and seals, mobile equipment spares, measuring equipment, and drive components.
EGA is separately working with the Ministry of Industry & Advanced Technology to highlight to potential investors the opportunities to develop UAE production of some major raw materials the company needs that could be locally produced, where EGA’s long term demand could make these projects viable.