The In-Country Value program initiated by ADNOC in 2018 is a procurement-led ingenuity. It is planned to accomplish the ideal value from the UAE’s oil and gas resources. The ADNOC In-Country Value (ICV) Program has now extended beyond oil and gas to include diverse sectors. It is now implemented by the Ministry of Technology and Advanced Technology (MoIAT). In this article, we will discuss the important aspects of the ADNOC In-Country Value (ICV) Program.
What are the components of the ADNOC In-Country Value (ICV) Program?
The ADNOC In-Country Value (ICV) Program encourages local investment, generating jobs, and developing sustainable financial growth. Some of the key components are;
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ICV Criteria and Assessment
The main component of the ICV Program is its evaluation criteria. It evaluates the input of companies to the local economy. These criteria comprise;
- The percentage of local spending on goods and services
- The employment of UAE nationals
- The investments in local infrastructure and technology
ADNOC evaluates these factors through a consistent ICV certification process. It offers a measurable score reflecting a company’s assurance of in-country value.
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Qualified Activities and Investments
Companies have to be involved in activities that directly contribute to the UAE’s economic development to qualify for ICV consideration. This comprises;
- Resident procurement of materials and services
- Partnerships with UAE-based businesses
- Investments in expertise and skills growth
The ADNOC In-Country Value (ICV) Program highlights the standing of supporting local supply chains and improving the competencies of regional industries.
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Reporting and Documentation
Companies considering to be involved in the ICV Program are mandated to submit comprehensive reports that present their ICV inputs. This involves;
- Providing data on local spending
- Employment figures
It is important to know that precise and transparent reporting is key to maintaining compliance with ICV obligations and accomplishing an auspicious ICV score.
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ICV Certification and Scoring
Upon assessment, companies receive an ICV score. It reflects their complete input ratio to the UAE economy. This score is used in ADNOC’s procurement and contracting processes. This ICV score affects the selection of suppliers and partners. Higher ICV scores can help businesses pave a smooth path towards more auspicious contract terms and augmented openings within ADNOC’s projects.
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Support and Guidance
ADNOC offers support and direction to help companies comprehend and fulfill ICV obligations. This includes;
- Workshops
- Training sessions
- Advisory services
This support helps businesses to improve their ICV performance and navigate the certification process.
What are the Benefits of the ADNOC In-Country Value (ICV) Program?
Some of the prominent Benefits of the ADNOC In-Country Value (ICV) Program are;
- ADNOC In-Country Value (ICV) Program boosts companies to capitalize on resident businesses and set-ups. It enhances the UAE’s economic development.
- ADNOC In-Country Value (ICV) Program encourages the hiring of UAE residents. It supports condensed redundancy and boosts local talent development.
- Companies with higher ICV scores have open access to a competitive advantage in ADNOC’s procurement and contracting processes.
- ADNOC In-Country Value (ICV) Program improves perceptibility and opportunities for local suppliers and service providers to participate in ADNOC projects.
- ADNOC In-Country Value (ICV) Program boosts the implementation and expansion of advanced technologies within the UAE. It fosters modernization and technical progression.
- ADNOC In-Country Value (ICV) Program supports the execution of best practices and local solutions.
- It also enables partnerships between global companies and local businesses as well as firming the local supply chain.
Conclusion
As of December 2019, the ADNOC In-Country Value (ICV) Program has expanded more than AED 44 billion back into the UAE’s economy. It has put more than 1,500 Emiratis in the private sector. ICV Certification is mandatory where goods are manufactured, generating revenue from outside UAE, investment, expat contribution, Emiratization, and development in investment, among others. It is important to know all the important aspects related to the ADNOC In-Country Value (ICV) Program. Businesses in the UAE face some issues. It is suggested to avail help from FAR Consulting Middle East. They are well-proficient to address all the issues promptly.