ADNOC ICV Program: Certificate, Score & Supplier Benefits

In 2018, Abu Dhabi National Oil Company (ADNOC) launched the In-Country Value (ICV) program to increase its ICV contribution through a procurement-led strategy. The initiative focuses on developing UAE nationals, choosing local suppliers, and localizing essential functions for the oil and gas sector. The purpose of this article is to explain all you need to know about the ADNOC-ICV program, including how to obtain ICV certificate in UAE and what benefits you’ll receive from it.

Updated note: The ICV framework first expanded through a unified certification process with government and semi-government entities, and in 2021 it was adopted at the national level under MoIAT. Today, the certification process is governed by MoIAT, while ADNOC continues to apply ICV within its supplier and tender evaluation process.

Key Objectives of the ADNOC ICV Program

The primary goals of the ADNOC ICV initiative are:

• Raising the amount of products and services purchased from vendors in the UAE
• Maximize employment opportunities for UAE citizens within ADNOC’s supplier chain.
• Encourage suppliers and manufacturers to build stronger local supply chains in the UAE.
• Strengthen the capacity for local production and service provision
• Educate and guide regional businesses
• Raises the oil and gas industry’s share of GDP in the United Arab Emirates

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ADNOC ICV Certification Requirements

The ADNOC ICV process is now aligned with the UAE National In-Country Value framework managed by the Ministry of Industry and Advanced Technology (MoIAT). While an ICV certificate may not always be mandatory simply to participate in ADNOC tenders, suppliers with a valid certificate and a stronger ICV score generally gain a competitive advantage during commercial evaluation. Businesses planning to work with ADNOC or other participating entities should therefore treat ICV certification as an important procurement-readiness requirement.

The ICV program has two parts: ICV certification and ICV implementation. The certification part is unified under MoIAT and aligned across participating entities, while ADNOC applies the certificate in its own tender evaluation process according to its ICV implementation guidelines.

Suppliers are generally required to obtain one ICV Certificate per legal entity, which can be used across ADNOC and other participating entities under the unified certification process.

A supplier’s contribution is assessed based on how much value the business adds to the UAE economy through local spending, investment, Emiratization, expatriate contribution, and eligible bonus factors.

ICV certificates are issued through MoIAT-authorized certifying bodies, which review the supplier’s submitted data and calculate the final score based on the applicable National ICV formula.

ICV Certificate Areas of Consideration

The final ICV score is calculated based on the applicable MoIAT formula. A higher score can strengthen a supplier’s position when competing for ADNOC and other participating-entity tenders.

Benefits of ICV Certification

Suppliers that have obtained an ICV Certificate have many advantages when competing for contracts with ADNOC and its affiliated companies:

• Opportunity to participate in ADNOC’s tenders
• Contract success is more likely when ICV assessment criteria are used in bids.
• More chances to do business as ADNOC seeks to offer contracts to qualified vendors
• Connections made possible via ICV’s matching forums and networking events
• Support and direction from ADNOC to enhance their ICV contribution

How ADNOC Uses ICV Scores in Tender Evaluation

In assessing offers from suppliers, ADNOC takes both financial and technical factors into account. A bidder’s ICV score is an independently assessed business metric. During the commercial review, bidders with higher levels of ICV Certification, such as Gold or Silver, benefit more than those with lower levels, such as Bronze, or no certification at all. 

For the purpose of technical bid evaluation, ADNOC has included ICV sub-criteria to further encourage suppliers to enhance their ICV contribution over time. Considerations for ICV are included in technical criteria such as “Implementation Methodology” or “Health, Safety, and Environment Plans” in order to evaluate the potential effects of the technological solution on ICV.

How Suppliers Can Improve Their ADNOC ICV Score

Suppliers doing business in the UAE might get an advantage and access more prospects with a better ICV score. To improve their ICV performance, companies may do the following:

• Increase National Workforce through Emiratization: Suppliers may improve their Emiratization score by hiring more UAE citizens and instituting training programs specifically for them. Companies may make a greater contribution to the national employment goals of the ICV program by implementing targeted activities to recruit and retain national talent.
• Outsourcing to Local UAE Suppliers: To enhance the In-Country Sourcing pillar score, it is helpful to identify local skills and outsource more goods and services locally. Companies may access a broader selection of components and services from within the UAE by conducting supplier development workshops to increase local vendor capabilities.
• Set Up Local Facilities: The establishment of local assembly or repair facilities, manufacturing factories, or both in the UAE results in the creation of local jobs and the transfer of technology. The dedication to the home market and economy is evident via these capital investments and infrastructure development projects.
• Invest in R&D: Businesses may aid the ICV program’s knowledge economy objectives by forming strategic partnerships with national institutions and universities to conduct research and tests. In addition to enhancing national skill sets, collaborative applied research initiatives are eligible for better R&D scores.
• Provide Training: Employees from the United Arab Emirates can improve their skills and competence for the workforce by receiving on-the-job training in technical and managerial areas. An organization’s commitment to developing industry talent is demonstrated via structured mentorship and skill development initiatives.
• Mentor SMEs: A great way to support local businesses is to form partnerships with smaller enterprises in the area. This may be done by subcontracting work or offering supply chain possibilities. Through this oblique link, SMEs are able to reap the rewards of bigger companies’ ICV accreditation and performance.

Conclusion:

In conclusion, suppliers should think about collaborating with expert ICV consulting companies in the UAE if they want to optimize their ICV scores and certification levels. When it comes to ADNOC bids, these specialists can guide you through the regulations, find the gaps, and provide tailored solutions to boost your contributions across all pillars of ICV certification.

Read More: What are the documents required for ICV in UAE?

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