Abu Dhabi National Oil Company (ADNOC) implements In-Country Value (ICV) Program
ADNOC is one of the world’s leading energy providers based in Abu Dhabi, the capital city of the UAE. ADNOC is a catalyst for growth and diversification in the Emirate and is committed to driving forward socio-economic objectives.
What is ADNOC ICV – In Country Value?
The ADNOC company has launched an in-country value (ICV) program which is currently in its implementation stage. In-Country Value (ICV) program with the objective of growing and diversifying the UAE’s economy and creating opportunities for UAE nationals in the private sector. As part of ADNOC’s ICV program, all ADNOC suppliers are required to declare their ICV achievement (ICV Certificate).
ADNOC requires an annual third-party verification of the numbers of the ICV Certificate to be conducted. The program aims to drive optimal value from oil and gas reserves, increasing the ICV contribution and supporting the private sector to support growth and diversification of the UAE economy.
The procurement-led initiative for ADNOC’s suppliers will focus on three key areas; diversification through expenditure on local goods and services; personal development for UAE Nationals in the private sector and localisation of capabilities for critical supply chain functions within the industry. The ICV program offers suppliers new opportunities to conduct business with ADNOC group.
ADNOC’s capital spend over the next five years will generate opportunities for companies to grow alongside ADNOC, as international companies work more closely with SMEs to maximise use of local products, manufacturing, services and infrastructure.
As part of ADNOC’s ICV program, all ADNOC suppliers are required to declare their ICV achievement (ICV Certificate) and their certified ICV score for the previous financial year, demonstrating how they are helping to deliver ICV. Business partnerships with ADNOC include an ICV assessment as part of the tender evaluation and award process.
The evaluation will examine the capabilities of the business within the UAE in areas including; Export of goods manufactured in the UAE; Third party spend (Procurement of goods and Sub-contractors); Local investment; Emiratization of workforce and Expatriate contribution.
Suppliers will be required to complete the Supplier Submission Template and approach one of the ADNOC certification bodies to obtain their ICV certificates. The ICV certificate will be issued only by ICV Approved Auditors/Audit Firms. ICV Cerificates will only be issued by the approved auditors on the basis of the Audit Report issued by external auditors /audit firms which are approved audit firms in UAE.
Alya Auditors is on such Approved Audit Firms in the UAE and we can provide you quality audit report for receiving the ICV Certification.
ADNOC will continue to develop the ICV strategy by various initiatives to include; working with suppliers to develop their long-term ICV strategies, identifying appropriate categories for which only SMEs will be invited to tender and facilitating training workshops for Emiratis to increase employability.
ADNOC’s ICV strategy is an extension of its 2030 growth strategy to “create a more profitable upstream and more valuable downstream business, as well as ensure an economic and sustainable supply of gas.”
Adnoc has propelled an in-country value (ICV) program to develop and broaden the uae’s economy and making open doors for uae nationals in the private segment. As a component of Adnoc’s ICV program, all Adnoc providers are required to proclaim their ICV accomplishment (ICV certificate).
ADNOC launched its ICV programme in 2018 to encourage private-sector partnerships and opportunities resulting from the company’s 2030 smart growth strategy, accelerate socio-economic development, improve knowledge-transfer and generate jobs for UAE nationals. More than 3,000 suppliers are certified in ADNOC’s ICV Programme, which serves as the primary enabler of ADNOC’s – and suppliers’ – contributions to the UAE’s socio-economic growth and development. The programme has driven more than AED 44 billion back into the UAE’s economy and enabled over 1,500 private-sector jobs for Emiratis since it was launched in 2018.
An ICV certificate needs to be obtained for each legal entity, which intends to participate in tender with ADNOC or any of its group entities.
The ICV Certificate shall be prepared based on latest audited financial statements.
The ICV certificate shall be valid for a period of 14 months from the date of initial issue the audit report based on which the certificate is issued.
Supplier shall be responsible to have the revised ICV certificate within 2 months of the issuance of audited financial statements.