ICV Certification in Abu Dhabi
What is ICV certification?
Abu Dhabi National Oil Company (ADNOC) implements In-Country Value (ICV) Program
ADNOC is one of the world’s leading energy providers based in Abu Dhabi, the capital city of the UAE. ADNOC is a catalyst for growth and diversification in the Emirate and is committed to driving forward socio-economic objectives.
What is ADNOC ICV - In Country Value?
The ADNOC company has launched an in-country value (ICV) program which is currently in its implementation stage. The program aims to drive optimal value from oil and gas reserves, increasing the ICV contribution and supporting the private sector to support growth and diversification of the UAE economy.
The procurement-led initiative for ADNOC’s suppliers will focus on three key areas; diversification through expenditure on local goods and services; personal development for UAE Nationals in the private sector and localisation of capabilities for critical supply chain functions within the industry. The ICV program offers suppliers new opportunities to conduct business with ADNOC group.
ADNOC’s capital spend over the next five years will generate opportunities for companies to grow alongside ADNOC, as international companies work more closely with SMEs to maximise use of local products, manufacturing, services and infrastructure.
As part of ADNOC’s ICV program, all ADNOC suppliers are required to declare their ICV achievement (ICV Certificate) and their certified ICV score for the previous financial year, demonstrating how they are helping to deliver ICV. Business partnerships with ADNOC include an ICV assessment as part of the tender evaluation and award process.
The evaluation will examine the capabilities of the business within the UAE in areas including; Export of goods manufactured in the UAE; Third party spend (Procurement of goods and Sub-contractors); Local investment; Emiratization of workforce and Expatriate contribution.
Suppliers will be required to complete the Supplier Submission Template and approach one of the ADNOC certification bodies to obtain their ICV certificates. The ICV audit will have to be undertaken by an authorised local audit firm.
Having a set up as a local Abu Dhabi LLC UAE Company with a 51% shareholder will increase your ICV score, although it will be necessary to obtain the ICV report for the 51% shareholder to get the full benefit. This is where using a corporate shareholder such as PRO Partner Group can assist. PRO Partner Group (PPG) already has full ICV registration and as such we can assist foreign companies in providing our own detailed ICV profile to combine with theirs.
For a 100% foreign owned Foreign Branch set up onshore, PRO Partner Group can act as the sponsor of the Branch. From preliminary discussions and detailed ICV scores to date it would appear that setting up as an LLC will generate a higher overall ICV score than a Foreign Branch, all other factors being equal, this is dues to the LLC being a true local UAE Company. It may be that some companies set up as a Foreign Branch at this stage may wish to transition to a full LLC if ICV is a significant consideration. There is a process to turn a Foreign Branch into an LLC – PPG can assist with this process and can additionally act as the 51% Local Corporate Shareholder, provide ICV support whilst ensuring the foreign company retains effective 100% control of all aspects of the Local LLC. Please contact a member of the Abu Dhabi team for further information.
ADNOC will continue to develop the ICV strategy by various initiatives to include; working with suppliers to develop their long-term ICV strategies, identifying appropriate categories for which only SMEs will be invited to tender and facilitating training workshops for Emiratis to increase employability.
ADNOC’s ICV strategy is an extension of its 2030 growth strategy to “create a more profitable upstream and more valuable downstream business, as well as ensure an economic and sustainable supply of gas.”
PRO Partner Group facilitates all the procedures and legalities involved in establishing and maintaining a commercial entity in the UAE, from Commercial Registration to Professional Corporate Nominee Services and Visas, Work Permits, CICPA Passes and more. Having assisted in the formation of over 400 companies in the Middle East, PRO Partner Group enable more businesses to capitalise on the regions prosperous economy.
For more information about ADNOC ICV Program and ADNOC SPC Approval (Supreme Petroleum Council Approval) as well as conducting business in Abu Dhabi, Licencing matters and PRO Services, please contact PRO Partner Group Abu Dhabi on +971 (0)2 448 5120 or email email@example.com
Abu Dhabi National Oil Company (ADNOC) implements In-Country Value (ICV) Program which is currently in its implementation stage. #ADNOC #ICV #InCountryValue #AbuDhabi #Oil #Gashttps://t.co/DIwvGZiOlj— PRO Partner Group (@PROPartnerGroup) November 5, 2018