Creating Local Opportunity

In-Country Value (ICV) Programs

FOCUS AREA

READING TIME

Share

Share on facebook
Share on twitter
Share on linkedin

Abu Dhabi National Oil Company (ADNOC) announced in November 2017 the company’s new In-Country Value (ICV) program for ADNOC group companies. There are three major goals for this program. The first is Emiratization, or creating more employment opportunities for Emiratis in the private sector. The second is supporting the U.A.E.’s goal of economic diversification by sourcing goods and services within the U.A.E. The third is the consideration of localizing strategically critical parts of the value chain for certain categories.

Since the implementation of this program in 2018, companies that are ADNOC suppliers have declared their ICV achievement – also known as an ICV Certificate – with regards to the prior fiscal year. This ICV assessment is a measure of the degree to which a firm contributes to the aforementioned goals, and it is a critical part of ADNOC’s tender appraisal and award process. As such, new bids are looked upon more favorably if they are associated with a company that locally manufactures goods, procures local goods and services, or hires Emirati nationals.

In February 2020, ADNOC and the Abu Dhabi Department of Economic Development (ADDED) announced that the two organizations signed a Memorandum of Understanding (MoU) to enhance cooperation with each other and help drive ICV. ADDED will both integrate and standardize ADNOC’s ICV Certification program across the government’s procurement process. With this MoU, companies can make a one-time application for a unified ICV certificate that will be applicable for the Abu Dhabi Government’s commercial evaluation of goods and services procurement.

The U.S.-U.A.E. Business Council has provided vital information about this ICV program through its regular media digests and supplementary materials such as its report on the U.A.E.’s oil and gas sector. At the same time, the Council has helped shape the evolution of this program by communicating the views of industry to key stakeholders and creating forums where industry can directly engage with the architects of this program.