1. Program Objectives:
Economic Diversification:
The primary objective of ADNOC ICV Certification is to diversify the UAE economy by fostering the growth of local industries and businesses associated with the oil and gas sector.
Local Workforce Development:
The program aims to boost the employment of UAE nationals and enhance their skills by creating job opportunities within the sector.
2. Key Components:
Local Content:
ADNOC ICV Certification evaluates the percentage of locally sourced goods and services in a company’s operations, encouraging the use of local suppliers and products.
Emiratization:
The program assesses the employment of UAE nationals within the organization, promoting Emiratization initiatives and contributing to the development of a skilled local workforce.
Knowledge Transfer:
ADNOC ICV Certification emphasizes the transfer of knowledge and technology to local entities, supporting the growth of indigenous capabilities.
3. Certification Criteria:
Supply Chain Engagement:
Companies seeking ADNOC ICV Certification must actively engage with local suppliers and integrate them into their supply chains.
Workforce Localization:
Achieving certification involves demonstrating a commitment to hiring and developing UAE nationals, contributing to the national agenda of building a capable and skilled workforce.
Technology Transfer:
Companies are encouraged to facilitate the transfer of technology and know-how to local entities, fostering innovation and sustainability.
4. Certification Process:
Assessment:
Companies undergo a comprehensive assessment to determine their ICV score, considering factors such as local spend, workforce localization, and technology transfer.
Benchmarking:
The ICV score is benchmarked against industry standards, and companies are classified based on their level of compliance and contribution to local value creation.
Periodic Review:
ADNOC ICV Certification is not a one-time process; companies are subject to periodic reviews to ensure ongoing compliance and continuous improvement.
5. Benefits of Certification:
Business Opportunities:
Certified companies gain a competitive edge in bidding for ADNOC projects, as the ICV score is often a criterion for awarding contracts.
Enhanced Reputation:
ADNOC ICV Certification enhances a company’s reputation as a socially responsible and locally committed business, positively impacting stakeholder perceptions.
Contribution to National Goals:
Certified entities actively contribute to the UAE’s economic diversification and Emiratization goals, aligning with the broader vision of sustainable development.
6. Challenges and Considerations:
Implementation Challenges:
Some companies may face challenges in adapting their operations to meet ICV criteria, requiring strategic planning and investment.
Continuous Improvement:
Maintaining ICV certification requires a commitment to continuous improvement, adapting to evolving standards and contributing progressively to local value creation.
7. Industry Impacts:
Sectoral Transformation:
ADNOC ICV Certification has a transformative impact on the oil and gas sector, driving a shift towards a more inclusive and sustainable industry.
Economic Resilience:
The program enhances the resilience of the UAE’s economy by reducing dependency on external sources and fostering a self-sustaining ecosystem.
Abu Dhabi’s role as the center of ADNOC operations and how businesses in the emirate benefit from ICV certification.
8. Future Outlook:
Expansion of ICV Initiatives:
The success of ADNOC ICV Certification has prompted discussions about extending similar initiatives to other sectors, further supporting the UAE’s economic diversification agenda.
Integration with Global Standards:
There are considerations to align ADNOC ICV Certification with global sustainability and corporate social responsibility standards, reinforcing the UAE’s position on the global stage.
Sharjah-based businesses can leverage ICV certification to access opportunities in the UAE’s energy sector while contributing to local economic growth.
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The strategic advantages for businesses operating in DAFZA and how ICV certification aligns with the zone’s focus on economic expansion and sustainability.
FAQs about ICV Certification
ICV Certification (In-Country Value Certification) is a program launched by the UAE government to boost the local economy by encouraging businesses to increase their contribution to the UAE’s GDP. It evaluates the extent to which a company supports the local economy through its operations, procurement, and hiring practices.
ICV Certification is mandatory for companies that wish to participate in tenders for government entities and large organizations such as ADNOC, Mubadala, and other UAE government-linked companies.
- Increased business opportunities: Companies with higher ICV scores have a competitive edge in government contracts.
- Support for local suppliers: Encourages businesses to prioritize local procurement.
- Economic growth: Promotes job creation and the use of local services.
The ICV score is calculated based on:
- Local spending on goods and services.
- Emiratization (employment of UAE nationals).
- Investment in the local economy, such as assets and facilities.
- Exports and contribution to GDP.
Typically, companies need to provide:
- Audited financial statements.
- Details of Emiratization levels.
- Local procurement and spending records.
- Other relevant data about operations and contributions to the UAE economy.
ICV Certification, spearheaded by ADNOC, seeks to elevate the UAE’s economy by nurturing local business engagement, prioritizing Emirati workforce inclusion, and facilitating knowledge transfer within the oil and gas sector.
The certification evaluates local involvement in operations, the proportion of Emirati employees, and the sharing of knowledge and technology with local entities.