The Abu Dhabi National Oil Company (Adnoc) has said that the AED400bn or $109bn capital investment it had previously announced making over the next 5 years will help generate opportunities for driving In-Country Value (ICV) and would help the company implement an enhanced localisation strategy.

The new policy is aimed at increasing the UAE oil major’s ICV contribution and strengthening its relationship with the UAE’s private sector. As part of the localisation goals of its Vision 2030 plan, Adnoc has off late been making a keen assessment of the ICV aspect of all tenders it is receiving for its projects from bidders, before engaging in business partnerships.

Adnoc hopes its proposed investment across its entire value chain will help create multiple opportunities for local companies, private sector players, and small and medium-sized enterprises (SME) to engage in business with Adnoc, thereby generating more local content.

The criteria which will be utilised to assess suppliers’ ICV contribution include goods and services sourced locally, employment and development opportunities for Emiratis, in country spend of subcontractors, supplier’s investment in the UAE, and expat contribution in the UAE, a statement from Adnoc details.

As part of the ongoing development of the ICV strategy, Adnoc will undertake a series of strategic initiatives including:

• Identifying suppliers and collaborating with them to develop their long-term ICV strategies
• Identifying appropriate categories for which only local SMEs will be invited to take part in the tender process
• Providing visibility of Adnoc’s future spend to incentivise and encourage supplier to enhance their investment in the UAE
• Facilitating focussed training programmes for Emiratis to increase the employability of local workforce.

To spread awareness about its recalibrated ICV strategy, Adnoc is planning to host workshops with suppliers to acquaint them with the company’s ICV guidelines and policies and explain how suppliers’ ICV contributions will be certified.

Adnoc says it has appointed a group of leading certifying bodies who will be responsible for verifying the ICV performance of all suppliers on an annual basis, or when required.

MEED understands the move to formally introduce an ICV accreditation aspect as part of its business policy is similar to the localisation ratings that Saudi Aramco awards to the contractors and suppliers it does business with based on their commitment and performance vis-à-vis the In-Kingdom Total Value Add (IKTVA) requirements.