In-Country Value (ICV)
In 2018, the Abu Dhabi National Oil Company (ADNOC) introduced a procurement led In-Country Value (ICV) programme to encourage Emiratization, GDP diversification and strategic considerations.
The main objective of the ICV Certificate is to improve participation of the private sector, facilitate the diversification of Gross Domestic Product (GDP) and localize critical parts of the supply chain.
Abu Dhabi Department of Economic Development (ADDED) had launched the Abu Dhabi Local Content Program (ADLC) with the following objectives:
- GDP growth
- Human Capital Development
- Technology Adoption
The previous ADLC formula (implemented by ADDED) had now been modified for the calculation of the ICV Score. The formula is divided into the following attributes, where the amount spent across the UAE level will now be considered as added value. The calculation methodologies are explained in detail in the relevant sections.
- Goods Manufacturer – Industrial Suppliers
- Third Party Spend i.e. for Services Providers/Non-Industrial Suppliers
- Investments
- Emiratization
- Expatriate Contribution
- Bonus – i) Revenue from outside UAE, ii) Emirati Head count and iii) Investment Growth
ADNOC will use ICV scores to rank local companies during the procurement/awarding process, with the contract being typically awarded to the local company with lowest bid and highest ICV score. It is of critical importance therefore for local companies to properly reflect their ICV score and ensure they are up to date with their calculations and certification.
Considering the importance, TELECTRON successfully certified for ADNOC In-Country-Value (ICV) program.