In 2013, Oman's Ministry of Energy and Minerals initiated its ICV journey for the energy sector. Following suit, in November 2017, ADNOC introduced the UAE's In-Country Value (ICV) Program. Qatar adopted a similar program in 2020, led by Qatar Petroleum for Tawteen, encompassing strategic sectors beyond energy. Concurrently, Saudi Arabia introduced the In-Kingdom Total Value Add (IKTVA) program in 2015, led by Saudi Aramco.
Origins and Initiation of UAE In-Country Value (ICV) Program:
UAE In-Country Value Program was initially introduced by ADNOC in November 2017 and introduced for suppliers at the beginning of 2018 as a procurement-led program, designed to achieve optimal value from UAE’s oil and gas resources with the objective of Emiratization, GDP Diversification, and strategic supply chain localization at the national level.
In 2019, this program was expanded beyond oil and gas to include different sectors with an aligned certification process to ensure efficiency and broad-based growth of the UAE’s economy. This program was adopted by other government and semi-government entities including ALDAR Properties, MUBADALA investment company, Abu Dhabi Department of Economic Development, and Abu Dhabi Ports, in their procurement process.
In 2020 and 2021, many other companies like Etisalat, Abu Dhabi Rail, etc. Have adopted this program in their procurement process with the same objective of Emiratization, GDP Diversification, and strategic supply chain localization at the national level
Since 2021, the In-Country Value program has been announced as the “National In-country Value” program and adopted at the Federal level and a special Ministry has been put in place. This program is now supervised by MoIAT (Ministry of Industry & Advanced Technology) in UAE. The Ministry of Industry and Advanced Technology (MoIAT) was given the authority to play a crucial role in guiding the industrial landscape toward greater prosperity, which is where the idea for the ICV originated. It began with the realization that supporting regional industries would enhance social development in addition to economic prosperity.
The specific goals and objectives of the National ICV program are the same right from the start. The main objective was to make local industries more significant and to establish them as important characters in the story of the country's economy. The UAE did this to strengthen its industrial base, lessen its reliance on outside sources, and establish a structure that would be viable in the future.
1. Supply Chain Localization & GDP Diversification
One of the primary goals of the ICV Program is to provide significant support to local industries. This involves creating an environment where businesses operating within the country can thrive, innovate, and contribute substantially to economic development.
The ICV Program seeks to contribute to the overall economic performance of the country. By encouraging and facilitating increased local participation, the program aims to strengthen the GDP of the UAE.
The program aims to empower the Emirati Talent in UAE, i.e. to promote more and more Emirati employees in the private sector as well in UAE.
The In-Country Value Program has multifaceted objectives that span from boosting economic performance and supporting local industries to redirecting public spending and fostering innovation. These objectives collectively contribute to the overarching goal of creating a robust, self-sustaining, and resilient national economy.
The Role of Certifying Bodies
Approved Certifying Bodies, like BMS Auditing, are essential to the ICV program's operationalization. These organizations are in charge of assessing and endorsing suppliers according to the methods through which they boost the UAE economy. For suppliers, receiving the ICV Certificate serves as a badge of recognition for their dedication to the program's goals.
Certification and Participation
Certified suppliers, armed with their ICV Certificate, gain access to a network of Participating Entities within the program. This interconnected ecosystem facilitates collaboration and business transactions, fostering a sense of community among entities committed to advancing the ICV goals.
The ICV Score
The ICV score, a numerical indicator of a supplier's dedication to the program's main principles, is the central component of the ICV Certificate. This score represents all of the money spent on regional goods and services, investments, and initiatives to support the growth and recruitment of Emiratis.
As we reflect on the historical journey and objectives of the In-Country Value Program, it becomes evident that the UAE's commitment to economic independence is woven into the very fabric of this initiative. The ICV program is not merely a historical footnote; it's a strategic roadmap that has paved the way for a resilient, self-sustaining economic future for the United Arab Emirates.