NMDC Energy, a leading UAE-based company specializing in engineering, procurement, and construction (EPC) services, is making waves with its bold expansion plans in the UAE and Saudi Arabia. The company recently signed a memorandum of understanding (MoU) with Shanghai Hilong Shine New Materials Company Limited, a Chinese firm known for its expertise in high-end coating and anti-corrosion materials. This joint venture (JV) aims to strengthen industrial and energy sectors in both countries, marking a significant step toward regional growth and innovation. Announced at the Make it in Emirates forum in Abu Dhabi, this deal highlights the UAE’s growing appeal as a hub for international business collaborations.
This article dives into the details of NMDC Energy’s expansion, the significance of the joint deal, and its potential impact on the UAE and Saudi Arabia’s industrial landscape.
What Is NMDC Energy?
NMDC Energy, formerly known as National Petroleum Construction Company, is a powerhouse in the EPC sector. Based in Abu Dhabi, the company provides services like fabrication, onshore commissioning, and offshore construction for oil and gas fields. With a fabrication yard in Saadiyat and a robust offshore construction division, NMDC Energy has built a strong reputation in the Arabian Gulf and beyond. Its recent financial performance is impressive, with net profits rising to AED 217 million in Q1 2025, up from AED 173.96 million in Q1 2024.
The company’s expertise and strategic partnerships make it a key player in the region’s energy sector. This new joint deal with Hilong is a natural extension of its mission to drive innovation and growth.
The Joint Venture with Shanghai Hilong Shine
A Strategic Partnership
The MoU between NMDC Energy and Shanghai Hilong Shine New Materials Company Limited is a strategic move to combine expertise and resources. Hilong, headquartered in China, specializes in high-end coating and new materials for industrial anti-corrosion solutions. This collaboration will focus on establishing a joint venture to enhance corrosion protection for assets in the UAE and Saudi Arabia, critical for industries like oil, gas, and energy infrastructure.
The agreement was signed during the Make it in Emirates forum, a platform that showcases the UAE’s industrial and economic potential. Ahmed Al Dhaheri, CEO of NMDC Energy, emphasized that this partnership reflects the UAE’s competitiveness and its ability to attract global players.
Why This Matters
Corrosion protection is vital for maintaining the longevity and safety of energy infrastructure, especially in harsh environments like the Gulf. By combining NMDC Energy’s EPC expertise with Hilong’s advanced coating technologies, the joint venture aims to deliver cutting-edge solutions that enhance asset durability and efficiency. This move not only strengthens industrial capabilities but also positions both companies as leaders in the region’s energy transformation.
NMDC Energy Expansion in the UAE
Building on a Strong Foundation
NMDC Energy is no stranger to large-scale projects in the UAE. The company has a backlog of projects worth over AED 56 billion (approximately $15 billion), including recent wins in the UAE and Taiwan valued at $3.5 billion since early 2025. Its fabrication yard in Saadiyat and its offshore construction division are key assets that support its expansion efforts.
The joint venture with Hilong will further bolster NMDC Energy’s presence in the UAE. By focusing on advanced materials and corrosion protection, the company is aligning with the UAE’s vision to become a global hub for innovation and technology. This is particularly relevant as Abu Dhabi aims to lead in artificial intelligence (AI) and energy infrastructure, with significant investments in AI data centers and energy projects.
Recent Achievements
NMDC Energy’s recent extension of a three-year framework agreement with Saudi Aramco, with an option for an additional three years, underscores its strong position in the region. This deal, combined with the Hilong partnership, signals NMDC Energy’s commitment to delivering high-value projects that support the UAE’s economic diversification.
Expanding into Saudi Arabia
A Growing Presence in the Kingdom
Saudi Arabia is a key market for NMDC Energy’s expansion. The company is set to begin operations at a new manufacturing center in Ras Al-Khair in June 2025, a move that will enhance its ability to serve the kingdom’s energy sector. This facility will focus on pipeline manufacturing and other critical infrastructure, aligning with Saudi Arabia’s Vision 2030 goals to diversify its economy and reduce reliance on oil.
The joint venture with Hilong will also play a crucial role in Saudi Arabia. By introducing advanced anti-corrosion technologies, NMDC Energy aims to support the kingdom’s ambitious infrastructure projects, including those tied to AI and energy innovation. Saudi Arabia’s $600 billion investment commitment to the U.S., announced during President Trump’s recent Gulf tour, highlights the kingdom’s focus on technology and energy partnerships, creating a favorable environment for NMDC Energy’s growth.
Strategic Importance
The collaboration with Hilong positions NMDC Energy to tap into Saudi Arabia’s growing demand for advanced industrial solutions. As the kingdom invests heavily in AI data centers and energy infrastructure, NMDC Energy’s expertise in EPC services and corrosion protection will be in high demand. This partnership also strengthens economic ties between the UAE, Saudi Arabia, and China, fostering a collaborative approach to regional development.
Broader Implications for the Region
Economic Growth and Innovation
The NMDC Energy expansion through this joint deal is more than just a business move—it’s a catalyst for economic growth in the UAE and Saudi Arabia. The partnership aligns with both countries’ ambitions to become global leaders in technology and energy. For the UAE, it reinforces Abu Dhabi’s goal of becoming an AI hub, while for Saudi Arabia, it supports Vision 2030’s focus on economic diversification.
The deal also highlights the Gulf’s growing appeal to international companies. As Al Dhaheri noted, the UAE’s industrial and energy sectors are a “magnet for international players” seeking to do business in the region. This collaboration with Hilong is a testament to the UAE’s ability to foster global partnerships that drive innovation.
Job Creation and Sustainability
The joint venture is expected to create jobs and boost local economies in both the UAE and Saudi Arabia. By investing in advanced manufacturing and corrosion protection, NMDC Energy is contributing to sustainable development in the energy sector. This is particularly important as both countries transition toward cleaner energy and more resilient infrastructure.
Challenges and Opportunities
Navigating a Competitive Landscape
While the NMDC Energy expansion is promising, it comes with challenges. The energy and industrial sectors in the UAE and Saudi Arabia are highly competitive, with numerous global players vying for market share. NMDC Energy will need to leverage its expertise and partnerships to stay ahead.
Additionally, the success of the joint venture will depend on effective collaboration between NMDC Energy and Hilong. Aligning goals, technologies, and operations across two countries and cultures will require careful planning and execution.
Opportunities for Growth
Despite these challenges, the opportunities are immense. The UAE and Saudi Arabia are investing heavily in infrastructure, AI, and energy, creating a fertile ground for companies like NMDC Energy. The joint venture with Hilong positions the company to capitalize on these investments, offering innovative solutions that meet the region’s evolving needs.
What’s Next for NMDC Energy?
Upcoming Projects
NMDC Energy’s expansion plans don’t stop with the Hilong joint venture. The company is already working on projects worth billions in the UAE, Saudi Arabia, and Taiwan. Its manufacturing center in Ras Al-Khair is set to become a key hub for pipeline production, further solidifying its presence in Saudi Arabia.
Long-Term Vision
Looking ahead, NMDC Energy aims to strengthen its position as a leader in the EPC and energy sectors. By investing in advanced technologies and strategic partnerships, the company is well-positioned to drive innovation and growth in the UAE and Saudi Arabia. The collaboration with Hilong is just the beginning of what promises to be an exciting chapter for NMDC Energy.
Conclusion
The NMDC Energy expansion through its joint venture with Shanghai Hilong Shine New Materials Company Limited is a bold step toward transforming the UAE and Saudi Arabia’s industrial and energy landscapes. By combining expertise in EPC services and anti-corrosion technologies, this partnership promises to deliver innovative solutions that support economic growth and sustainability. As both countries continue to invest in technology and infrastructure, NMDC Energy is poised to play a pivotal role in shaping the region’s future. With a strong track record and ambitious plans, the company is ready to make its mark on the global stage.
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