The Abu Dhabi National Oil Company (ADNOC) has launched an In-Country Value (ICV) program from January 2018
Increase employment opportunities for the UAE nationals in the private sector.
2. GDP Diversification
Supporting UAE GDP with a view to diversify the United Arab Emirates economy by localizing more goods and services.
3. Strategic Considerations
Localizing important functionalities in the field of oil and gas.
After the implementation of the ICV program, Adnoc's suppliers are required to declare their ICV achievements with respect to the previous financial year. All ADNOC suppliers are now required to contact an ADNOC certification body for an ICV certificate and submit the suppliers' submission template. In the United Arab Emirates, the ICV certificate can only obtain from an ICV approved auditor or an audit firm. The ICV auditor/ audit firm will only issue an ICV certificate on the basis of the audit report of an entity issued by an approved external auditor or audit firm from the government of the United Arab Emirates.
⦁ Investment in UAE
⦁ Goods manufactured (for suppliers engaged in manufacturing)
⦁ Third-party spend (for service providers)
⦁ Expatriate contribution
⦁ Bonus for (i) Exports & (ii) Emirati headcount
The ICV Certificate will help and grant companies the opportunity for the first right of refusal in the tender process. Where companies which do not have ICV certificate will still be allowed to participate in Adnoc Group tenders, but their ICV score will be considered as zero in the bid evaluation, so they will be at a disadvantage as compared to those companies which have higher ICV score.
ICV certification is entirely based on the audited financial statements of the company as per IFRS (International Financial Reporting Standards). Financial statements should be two years older than certification year. Companies with multiple entities, each license within a group are considered as an independent legal entity even if ownership is the same for all.
But if companies have different branches in the same emirate with identical activities and ownership listed on the licenses, then one combined ICV certificate is allowed for the company in that emirate.
Inspire's team can help you obtain your ICV certificate within a short thurnaround time as we have a team of experts. Our first job is to make clients understand the ICV program and determine factors that affect the ICV score. Inspire's team then suggest procedure for improving the score.