Insight into how Abu Dhabi’s 2020 economic vision is producing regional leaders in manufacturing, demand for UAE products and career opportunities in the booming emirate.
In 2009, HH Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, announced the Abu Dhabi Economic Vision 2030.
The plan to reshape the emirate’s economy included the decision to decrease its reliance on local oil exports as a source of economic activity and transform it into a knowledge-based exporter of goods and services in the future.
In doing so, other local industries would educate and train the national workforce, opening them to more opportunities in Abu Dhabi’s local and international industries.
Since Abu Dhabi set its sights on the 2030 Economic Vision, things have already become much clearer. The emirate’s wealth has given it the ability to expand into a wide variety of services as well as manufacturing and technology industries.
Tawazun Precision Industries (TPI), a subsidiary of Tawazun Holdings, the investment arm of the Offset Program Bureau, arguably entered the manufacturing industry at the
perfect time.
The firm, which began operations in 2007, was originally a military and sporting weapons parts manufacturer, striving to produce at a high quality within the sector. The company then expanded into the oil and gas segment in mid-2010 and hasn’t looked back.
Drawing on its military as well as its aeronautics divisions, particularly with regards to its competencies in fixture manufacturing and titanium components, the company manufactures-to-print the designs for drill-bits, collars, ball valves and other parts which it receives from a number of its clients – including Weatherford, Baker Hughes and Al Mansoori.
“TPI today operates by supporting international and national oil companies, mainly with their upstream activities in exploration and production,” says Osama Amir Fadel, head of the oil and gas division.
“Basically our role is to support them with manufacturing and machining needs to produce their components,” he continues.
“We provide high standard manufacturing capabilities to many companies today which are active in the region that want the quality service we provide,” he said.
The company currently works with 40-50 companies including major OEMs and other local companies. These partners submit designs and drawings for TPI to manufacture. The company aims to manufacture products at the same level of quality within an industry-competitive time frame of two weeks to a month.
“So our main competencies lie in providing the high standard quality products which we are proud of and which we are trying to promote here,” says Amir Fadel.
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The company located within Abu Dhabi emirate, says that the key distinguishing factor that marks it out from competitors is the scale of research and development that it can actually engage in with its customers.
“We don’t just say ‘okay you bring the design and we manufacture for you’, we ask them ‘what do you think for the future?’ and we are ready to engage with them in their future R&D,” says Amir Fadel.
“We also provide the complimentary services that are needed for metallic manufacturing. So under one roof we can actually provide turnkey and other services,” says Amir Fadel.
TPI is currently engaged in product research development with a number of OEMS. “They are saying ‘we have this component, we want to develop it, make it work better’ or ‘we used to manufacture overseas and would like to bring it here,” says Amir Fadel.
TPI’s entry into the manufacturing industry may be a precursor for things to come in Abu Dhabi’s economy on two different levels. First, it is bringing high-quality manufacturing work to the emirate at a competitive price at a crucial time in the oil and gas economy.
Second, it is paving the way for more advanced research and development capabilities within the country.
This is particularly due to the fact that by increasing its partnership role in the research and development of parts, it provides UAE nationals with specific skills training and practical experience they might not receive otherwise.
The company has developed an in-house, three-phase, three month training programme which gives Emirati women opportunities to be trained in basic engineering, English
and mathematics.
Once completed, the programme can lead to employment within Tawazun’s portfolio
of companies.
Approximately 35% of the oil and gas segment’s 300 employees are UAE Nationals. With this number, the company is able to operate on a 24-hour basis.
TPI says that its competitive model penetrates the manufacturing market at a time when competitors in the industry are consistently burdened with orders that sometimes exceed their production capabilities.
“There is huge pressure on the OEMs and international companies to lower their costs. In order to do this, they have to find capable suppliers, who also come with equipment, to compliment their activities in the region and overseas,” says
Amir Fadel.
In addition to costs, the company believes it also competes on quality. Seeing itself as more than just a machine shop, TPI aims to provide complimentary services such as surface and heat treatment on components, providing a guarantee service to the OEM.
Speed and responsiveness are equally important to TPI. According to Amir Fadel, success in the oil and gas parts manufacturing industry is about how dependable you are in manufacturing urgently and developing with quality.
“Our optimisation never stops and we are committed to optimisation on all fronts” says Amir Fadel, “not just in research and design but with the processes to improve our manufacturing capabilities.”
