How to Set Up a Manufacturing or Supply Company in Abu Dhabi to Win ADNOC Contracts (2026 Guide)

Setting up a manufacturing company in Abu Dhabi to win ADNOC contracts: licence, ICV and supplier registration
Table of Contents

Updated: 26 October 2026

On 25 October, at the second Make it with ADNOC Forum in Abu Dhabi, ADNOC published what amounts to a shopping list: more than 200 products and spare parts it currently buys from abroad, worth over AED 60 billion through 2030, that it wants made in the UAE instead.

For anyone deciding whether to set up here, the procurement rules that came with the list matter more than the headline number. From 1 November, ADNOC scores bids 70% on commercial terms and 30% on In-Country Value (ICV). Supplier registration that used to take weeks now takes about a day. And contracts under AED 2 million no longer need an ICV certificate at all.

That changes the maths. A trader reselling imported pipes now gives away part of the score on every bid. A company that makes or assembles something here has an edge it didn’t have a month ago. This guide covers what ADNOC announced, which licence to get, the factory approvals, ADNOC registration and ICV, and the order to do it all in.

What ADNOC announced on 25 October

WhatDetail
SizeMore than AED 60 billion of local manufacturing opportunities through 2030
Products200+ products and critical spare parts across drilling equipment, electrical and automation systems, chemicals, catalysts, piping and heavy machinery. Named examples include electrical submersible pumps, oil country tubular goods, seamless pipes and compressors
Bid scoringFrom 1 November 2026, a single evaluation weighted 70% commercial and 30% ICV
Smaller contractsUnder AED 2 million: no ICV requirement. Under AED 50 million: no ICV retention
RegistrationSame-day registration, half the documents, no pre-qualification for 60% of service categories, one platform, AI checks on uploaded documents
Local+More than 100 approved UAE manufacturers, up from 70 at the May launch. Contractors on new projects must buy eligible products from the list
PartnersAgreements with the Abu Dhabi Investment Office (ADIO) and KEZAD Group, and financing support through the National Industrial Resilience Fund with the Ministry of Industry and Advanced Technology (MoIAT)

The AED 60 billion is the value of products ADNOC wants made locally. It isn’t a pile of contracts waiting to be handed out, and nobody gets an order just for opening a factory. But ADNOC has a track record here. It says it has already reached AED 80 billion of its AED 90 billion local manufacturing target for 2030, with more than 130 products made locally and 95 factories built or expanded along the way, according to The National.

One note on the figures. Some reports of the forum gave the contract thresholds in dollars. The National and ADNOC’s own announcement use dirhams, so we’ve used dirhams here. ADNOC’s detailed guidance to suppliers is the final word.

Why this changes the setup decision

Under the rules ADNOC is retiring, ICV worked a bit like a tiebreaker. The bidder with the highest ICV score was asked to match the lowest price. From November, ICV is 30% of the score on every contract above AED 2 million.

ADNOC hasn’t published exactly how an ICV percentage turns into points. Still, with nearly a third of the score at stake, a big gap in ICV can now outweigh a modest gap in price. An importer with a low ICV score bidding against a local assembler with a high one is starting from behind.

Local+ goes further. For products on that list, contractors bidding on new ADNOC projects have to buy from approved UAE manufacturers. If your product is on the list and you aren’t, your price doesn’t come into it.

Then there’s the AED 2 million exemption, which is how most new companies will get in. You can’t get an ICV certificate until you have audited accounts, and a company in its first year doesn’t have any. Small contracts let you start supplying ADNOC while that first year runs.

If you want a rough idea before you invest, MoIAT now lets companies estimate their ICV score ahead of certification, Gulf News reported this month. It’s worth running the numbers on your planned setup, not just your current business.

KEZAD or Abu Dhabi mainland: which licence?

Most manufacturers aiming at ADNOC end up choosing between KEZAD and an Abu Dhabi mainland licence from the Department of Economic Development (ADDED).

KEZADAbu Dhabi mainland (ADDED)
Best forFactories, warehousing and exporters that want a plot or industrial unit near Khalifa PortCompanies that will also sell, install or service across Abu Dhabi, or work directly for government entities
Foreign ownership100%100% for most industrial activities
Manufacturing approvalMoIAT approval neededMoIAT approval needed
Working onshoreA mainland branch or permit is needed for regular onshore workDirect
Corporate Tax0% on qualifying income if the Qualifying Free Zone Person conditions are met, otherwise 9%9% on taxable income above AED 375,000. Small Business Relief if revenue is AED 3 million or less, for tax periods ending by 31 December 2029

A few things to know about each route.

KEZAD (Khalifa Economic Zones Abu Dhabi) is part of AD Ports Group, and you’ll still see parts of it called by the older name, KIZAD. ADNOC signing an agreement with KEZAD Group at the forum is a fairly clear signal of where it expects new factories to go.

On tax, manufacturing and processing of goods are qualifying activities for a Qualifying Free Zone Person. To keep the 0% rate you need real substance in the zone, audited financial statements, and non-qualifying income within the de minimis limits. Our guide to Qualifying Free Zone Persons explains the conditions.

A free zone company isn’t locked out of the mainland. Since Federal Decree-Law No. 20 of 2025, free zone companies can open mainland branches, subject to licensing approval.

If you already have a company in Dubai or Sharjah, you probably don’t need to start again. ADNOC’s Supplier Hub lists a licence from an Abu Dhabi authority, with the right activities, among its requirements for local suppliers, so the usual answer is an Abu Dhabi branch. Our pages on business setup in Abu Dhabi, Abu Dhabi free zones and the Abu Dhabi trade licence cover the general options.

Factory approvals from MoIAT

Getting the licence is the quick part. Manufacturing also needs MoIAT’s industrial approvals, and those take longer.

MoIAT’s published requirements for initial approval include:

  • a certificate from the local licensing authority (KEZAD or ADDED)
  • the trade licence and the owners’ identification documents
  • at least 10 employees
  • manufacturing facility capital of at least AED 250,000
  • compliance with industrial safety, public health and environmental rules

Depending on what you make, expect environmental and civil defence approvals on top.

In practice, the delays rarely come from the paperwork. They come from the site: plot allocation, fit-out, utilities and the inspection before production starts. Ask the zone or ADDED for the full approval sequence for your exact activity before you sign a lease. A unit that works for a warehouse won’t necessarily work for chemical blending.

We cover the industrial licence itself, including how the Dubai process compares, on our industrial licence page.

Registering as an ADNOC supplier

From November, registration, due diligence and pre-qualification sit on one platform, and you register once. ADNOC says registration can now be done the same day, the documents it asks for have been cut by half, and AI checks what you upload. There’s no fee to register.

Pre-qualification has been dropped for 60% of service categories. If you manufacture technical products, though, expect product qualification and technical approvals. Those are what decide whether you can get onto Local+.

ADNOC didn’t publish the new document checklist at the forum. Check the Supplier Hub on the day you apply rather than relying on older guides, ours included.

ICV certificates: what a new company needs to know

An ICV certificate isn’t a form you fill in. It’s a score worked out from your audited financial statements using MoIAT’s ICV template, and it’s issued by a MoIAT-approved certifying body, usually an audit firm. MoIAT’s service page puts processing at 14 to 28 working days once your documents are complete.

The score rewards money that stays in the UAE: spending with local suppliers, goods made here, investment in UAE assets and Emirati staff. That’s why a factory scores better than a trading company, even when both sell the same pump.

How the new ADNOC rules use it:

  • Contracts under AED 2 million don’t need an ICV certificate.
  • Contracts from AED 2 million upwards are scored on the 70/30 model.
  • Contracts under AED 50 million no longer carry ICV retention. On larger contracts, ADNOC asks for an ICV improvement plan.

ICV retention is also now automated. You upload your certificate and ADNOC’s system works out your obligation and processes payments. ADNOC says that part is already live.

The gap new companies have to plan for is year one. No audited accounts means no certificate. The sensible order is to bid on small contracts, get your first audit done promptly after your financial year ends, and certify straight after.

For the certification process itself, see our pages on ADNOC ICV certification and who needs an ICV audit.

What to budget for

We haven’t quoted package prices here. Fees vary by zone, plot and activity, and the figures published online disagree with each other by a wide margin. These are the cost lines to ask about:

  • licence and MoIAT fees, every year
  • plot, warehouse or industrial unit lease
  • fit-out and machinery, usually the biggest number by far
  • visas and salaries for at least 10 employees
  • an annual audit, which you need for ICV and for Qualifying Free Zone status
  • Corporate Tax registration and filing, and VAT once your taxable supplies pass AED 375,000

Ask for a written quote covering the first three years. The year-one price is rarely what you’ll pay in year two.

Step by step

  1. Check your product against ADNOC’s list of 200+ products and the Local+ categories. If your finished product isn’t there, a component or spare part might be.
  2. Choose KEZAD or the Abu Dhabi mainland, based on where you’ll sell and work.
  3. Reserve the trade name, submit shareholder documents and get initial approval.
  4. Apply for MoIAT approval and secure the plot or unit.
  5. Receive the licence, open the bank account and apply for visas.
  6. Register for Corporate Tax. Under current FTA timelines, new companies have three months from incorporation.
  7. Register on ADNOC’s Supplier Hub.
  8. Bid on contracts under AED 2 million while your first financial year runs.
  9. Get your first audited financial statements and apply for an ICV certificate.
  10. Apply for Local+ once your product is qualified. Register for VAT as soon as you pass AED 375,000 of taxable supplies, which a single industrial order can do.

Common mistakes

  • Setting up as a trading company and expecting the ICV weighting to help. For importers, it works the other way.
  • Picking a free zone outside Abu Dhabi, then finding that ADNOC’s local supplier registration asks for an Abu Dhabi licence.
  • Signing a plot lease before MoIAT confirms your activity is allowed on that site.
  • Budgeting for the licence and forgetting the 10-employee minimum.
  • Treating the ICV certificate as paperwork. It’s an audit result, and the score depends on how you’ve spent money all year.

How A&A Associate can help

We set up companies in KEZAD and on the Abu Dhabi mainland, handle industrial licence and MoIAT applications, and open Abu Dhabi branches for companies already licensed elsewhere in the UAE. We can support your ADNOC supplier registration, and our team on the main site helps with ICV certification and the audit behind it. We also handle visas, bank account applications, Corporate Tax, VAT and bookkeeping.

Tell us what you make and who you want to supply. We’ll tell you which licence fits, which zone makes sense, and roughly what your ICV score could look like after your first audit.

Frequently asked questions

What did ADNOC announce in October 2026?

At the second Make it with ADNOC Forum on 25 October 2026, ADNOC announced more than AED 60 billion of local manufacturing opportunities through 2030, covering over 200 products and spare parts. It also changed how it scores bids and registers suppliers, with the new rules starting on 1 November 2026.

What is ADNOC’s new 70/30 ICV model?

From 1 November 2026, ADNOC evaluates commercial and ICV offers together, with 70% of the score for commercial terms and 30% for ICV. It replaces the old approach, where the bidder with the highest ICV score was asked to match the lowest price.

Do I need an ICV certificate to supply ADNOC?

Not for contracts below AED 2 million, which are exempt from ICV requirements. Above that, the 70/30 model applies. Contracts below AED 50 million no longer carry ICV retention, while larger contracts may also need an ICV improvement plan.

Can a Dubai company register as an ADNOC supplier?

ADNOC’s Supplier Hub lists a licence from an Abu Dhabi authority, with the right activities, among its requirements for local suppliers. Companies licensed in Dubai or Sharjah usually open an Abu Dhabi branch rather than set up a new company. Check the current requirements on the Supplier Hub before applying.

Is KEZAD better than Abu Dhabi mainland for a factory?

KEZAD suits factories, warehousing and exporters that want a plot near Khalifa Port, and ADNOC signed an agreement with KEZAD Group at the October forum. The mainland suits companies that will also sell, install or service across Abu Dhabi. Both need MoIAT approval for manufacturing.

What does MoIAT require for a manufacturing facility?

MoIAT’s published requirements include a certificate from the local licensing authority, a trade licence, the owners’ identification documents, at least 10 employees, manufacturing facility capital of at least AED 250,000, and compliance with industrial safety, public health and environmental rules.

How does a new company get an ICV certificate?

An ICV certificate is based on audited financial statements, so a new company has to complete its first financial year and audit before it can be certified. A MoIAT-approved certifying body issues the certificate. Until then, contracts under AED 2 million are open to you without one.

What is ADNOC’s Local+ programme?

Local+ is a list of approved UAE manufacturers. Contractors bidding on new ADNOC projects must source eligible products from manufacturers on the list. It had more than 100 manufacturers after the October 2026 forum, up from 70 when it launched in May.

How long does it take to set up a manufacturing company in Abu Dhabi?

The licence itself can be quick. MoIAT approvals, plot allocation, fit-out and inspection take longer, often several months, depending on the product and the site. Once you’re licensed, ADNOC registration now takes about a day.

Does a manufacturing company in KEZAD pay Corporate Tax?

It can pay 0% on qualifying income if it meets the Qualifying Free Zone Person conditions, and manufacturing and processing of goods are qualifying activities. It needs adequate substance in the zone, audited financial statements and non-qualifying income within the de minimis limits. Otherwise, the standard 9% rate applies to taxable income above AED 375,000.

Disclaimer: This article is for general information only. It is based on ADNOC’s announcements at the Make it with ADNOC Forum as reported by The National, Gulf News and the Abu Dhabi Media Office, and on MoIAT and ADNOC Supplier Hub information, as checked on 26 October 2026. ADNOC procurement rules, MoIAT requirements, KEZAD and ADDED licensing terms and tax rules can change. Confirm current requirements with ADNOC’s Supplier Hub, MoIAT, the relevant licensing authority and the Federal Tax Authority, or take professional advice before investing.

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Robin Philip
Robin Philip is the Founder and CEO of A&A Associate, one of the largest consultancy firms that built a strong foothold in the UAE’s accounting and auditing sector. After building a solid reputation for delivering reliable and accurate financial services, Robin identified a growing demand for comprehensive business support in the UAE's dynamic market.

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