A procurement-led project, the In-Country Value (ICV) program aims to maximize the value extracted from the oil and gas resources of the United Arab Emirates (UAE), which are now being extended to other industries. Following its 2018 launch by the Abu Dhabi National Oil Company (ADNOC), the initiative has been embraced by the UAE Ministry of Technology and Advanced Technology (MoIAT) to encourage a standardized certification procedure, which in turn promotes efficiency and widespread economic growth.
Key Objectives of the ICV Program
The ICV program focuses on three main objectives:
Table 1: ICV Program Objectives and Goals
| Objectives | Goals |
|---|---|
| GDP diversification | Increase expenditure on a growing variety of local goods and services |
| Emiratization | Create personal development opportunities for UAE Nationals in the private sector |
| Localization of strategic capabilities | Localize strategic capabilities for critical supply chain functions in the oil and gas industry |
The ICV Program’s Structure
The ICV program consists of two parts:
- ICV certification: All the entities participating in ICV program are united and work for one purpose of certification, which is directed by the Ministry of Industry and Advanced Technology (MoIAT). Every party willing to take part is to be considered for the ICV unified certificate, according to which all participating entities will use the same ICV certificate, which should be allowed by the certifying body to be issued only once for each legal entity.
- ICV implementation: The ICV implementation at the level of company or organization will differ. It defines the planned utilization of the certificate by every involved body. Therefore, all the concerned bodies are supposed to assess the ICV certificate based on their policy.
The implementation of the ICV strategy relies on the assistance and support of all involved in the process. MoIAT endorsed certifying bodies evaluate firms impact on the UAE economy and then issue the ICV certificate UAE. This official ICV certificate showcases the ICV score indicating the expenditure on products and services, investments, as well as Emirati recruitment and training efforts.
Benefits of Obtaining an ICV Certificate UAE
Companies in the UAE with an ICV certificate enjoy benefits, such as;
- New Business Opportunities: Securing an ICV certification can unlock business opportunities in both public and private sectors enhancing the likelihood of securing lucrative contracts and establishing fruitful partnerships.
- Competitive Edge: It sets a company apart from competitors making it a more attractive choice for customers or collaborators.
- Growth: The program encourages long term sustainability by encouraging companies to invest in local resources like Emiratis, infrastructure and technology laying a solid foundation for future expansion in UAE.
- Government Support: Businesses holding ICV certification can access various government incentives and initiatives. These include preferences given to ICV certified businesses in commercial transactions and government tenders.
- Credit as a Responsible Business Citizen: The ICV certified businesses ensure that they follow the best practices in business activities and maintain a positive relationship with their customers, partners, and investors.
- Strengthened Business Alliances: The main aim of the ICV program is to localize and invest in the UAE economy as a result of which the companies form strengthened relations with the local suppliers, partners, and customers.
- Better Corporate Social Responsibility (CSR): It aligns with a company’s effort to its CSR activities, reflecting a commitment by the company toward making a good impact in the community and supporting sustainable business practices.
- Cost Savings: In order to boost their ICV scores businesses purchase goods and services locally, make use of local resources, and hire local employees which ultimately save costs for businesses.
FAQs
1. What is the ICV program?
In 2018, the Abu Dhabi National Oil Company (ADNOC) launched the ICV program in line with its strategic scheme to derive the maximum value from UAE-produced oil and gas resources.
2. What are the strategic goals of the ICV program?
The ICV initiative includes key oil and gas chain operations towards home in order to build up strategic capability and diversify the revenue sources of the economy, along with encouraging Emiratization.
3. How ICV programs support UAE Vision 2021?
The ICV program contributes positively towards the UAE Vision 2021 in respect of national benefits that include the creation of a sustainable, diversified economy, knowledge-based, and innovation-driven one.
4. What will be the benefits to the suppliers from the ICV program?
The ICV program will benefit the suppliers by increasing competitiveness and improving opportunities for successful bids within those companies subscribed to the program while contributing to the development of the UAE economy.
Conclusion
In summary suppliers, in the UAE have an opportunity to contribute to the growth and success of the economy by participating in the ICV program. However obtaining certification can be an time consuming process. Seeking guidance from ICV certificate consultants can help suppliers navigate through certification requirements, improve their ICV score and enhance their contribution to the UAEs economy.