FAQ about ADNOC in-country value (ICV) program in Dubai, UAE
The ADNOC ICV certification program in Dubai, UAE is an on-going activity that supports ADNOC’s ICV commitment by focusing on the choice of local suppliers, the advancement of UAE citizens, and, therefore, restriction of basic operations within the oil and gas industry.
Is the ICV certificate in Dubai, Abu Dhabi, Sharjah, UAE limited to small and medium-sized companies only?
No, the ICV certificate is not limited to the size of the company.
What are the economic benefits of the ICV certificate?
The United Arab Emirates aims to diversify the local economy, strengthen supply chains, increase Emiratization in the private sector, and transfer technical knowledge to the local companies that led to the introduction of the ICV program in Dubai, UAE.
It would drive GDP growth, introduce working for Dubai citizens in the private division, and give neighbouring organizations more potential for interest in ADNOC contracts and procurement.
How much does an ICV certificate cost?
The prices for the ICV certificates in Dubai, UAE may vary from one certifying body to another. ICV certificate platform allows the applicant to receive quotations from all the certifying bodies.
Is there a specific threshold in order to obtain certification?
The grade is evaluated based on the financial statements and there is no minimum score for participation in the tenders.
If the company has branches in more than 2 Emirates, is it possible to issue one ICV certificate?
Branches can be combined only if they exist in one Emirate and if their activities are identical. Branches in different Emirates need a different certificate for each license.
What does the ICV mean for existing and potential new suppliers?
ICV implies that both existing and prospective providers should conclude an assessment to decide on their eligibility for an ICV declaration. This authentication may be a show that providers are telling true ICV. By choosing qualified providers, ADNOC is currently working towards its country price targets.
How will the strategy affect the procurement process of ADNOC?
ADNOC has been taking into consideration the in-country value while selecting suppliers for the new tenders. Suppliers who hold certificates with a high ICV score will be favoured during the tender evaluation process.
What are the requirements for issuing an ICV certificate?
Audited and approved financial statements, along with other requirements requested by the certifying bodies.
What is the difference between ICV 3.0 and ICV 2.0?
ICV 3.0 is the standard certification that will be requested by all participating government entities for their purchases/procurements. ICV 2.0 is the older version of the ICV certificate which was used by ADNOC for their purchases.
Can a company located outside Abu Dhabi use its ICV certificate to bid on Abu Dhabi government tenders?
Yes, the certificate can be used by all companies, wherever they are, to participate in government tenders under the Abu Dhabi Local Content Program
What if a supplier cannot meet these requirements?
Providers who do not have ICV confirmation, in any case, can participate in the ADNOC tender but will be considered with zero ICV score, which at the end of the day receives less attention
Will the current contracts be renegotiated due to this schedule?
No. Existing contractors remain unaffected by changes to the ICV program.
How often will suppliers need to review their ICV certificate?
Providers will be relied upon to review their ICV certification within 14 months.
How will the price requirements be defined in the country?
In-country values characterized by classification:
Product and Material – The in-country value is the level of monetary respect within the Dubai between the combination process of goods and materials.
Administration – The in-country value is that a mix of monetary honour is included within the Dubai for segments under administrations.
For enquiries, call +971 5679 52590 / E-mail: info@aviaanaccounting.com
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