Launched in 2018, the ICV program maximizes value retention within the UAE, by increasing the in-country spend from our capital and operating investments. It nurtures an economic ecosystem that incentivizes international companies to work closely with local businesses and use local products, manufacturing facilities, people, services and infrastructure.
Emiratization: Create employment opportunities and development of skills for local talent in the private sector.
GDP Diversification: Drive GDP growth and diversification by sourcing local goods and services.
Strategic Considerations: Localize strategically critical links of our supply chain through private sector partnerships and collaborations.
Maximizing In-Country Value
We have made great progress on our ICV objectives through strategic partnerships, investments, and the commitment of our suppliers. Sustaining these efforts will ensure we realize our 2030 sustainability goal of achieving an ICV score of 50% across our full value chain.
Through our ICV program, our local spend has significantly increased year-on-year. ADNOC has driven more than $8 billion back into the UAE economy in 2020, bringing the total ICV local spend, since its launch in 2018, to $20.7 billion.
We are fulfilling our commitment to promote ICV in the private sector and develop a highly skilled and productive national workforce. The program has created more than 3,000 employment opportunities for UAE nationals since its launch.
To ensure continual improvement in the value created by the program, suppliers are required to be ICV-certified, based on an evaluation that takes account of goods manufactured in the UAE, the value of domestic third party spend and Emiratization record. Since the program’s launch in 2018, more than 5000 suppliers have been ICV certified. We conduct an annual verification exercise through globally respected certifying bodies to verify the suppliers’ ICV performance and improvements.
In 2019, we signed agreements to extend the reach of the ICV program to the logistics and construction sectors and explored targeted opportunities for collaboration in creating additional employment opportunities for UAE nationals in the UAE’s private sector. We also invested in several strategic partnerships that have stimulated additional commercial partnerships for local suppliers, expanded local manufacturing capabilities and improved transfer of knowledge, within the oil and gas sector.
Following the success of ADNOC’s ICV program, we have extended its impact and reach through agreements with the logistics and construction sectors. In 2020, we signed agreements with the Abu Dhabi Department of Economic Development aimed at integrating and standardizing ADNOC’s ICV certification program across the Abu Dhabi Government’s procurement process. We have also partnered with the Mubadala Investment Company and Emirates Nuclear Energy Corporation (ENEC), bringing together three of the UAE’s leading companies to explore opportunities for creating additional skilled employment for UAE nationals in the private sector, localizing strategically critical parts of the value chains and sourcing of goods and services within the UAE.
To further extend the impact of our ICV program, we introduced the small- and medium-sized enterprises (SMEs) initiative to enable their integration into the oil and gas supply chain.
We continually engage with our suppliers to support their compliance to ADNOC’s businesses practices and ensure sustainable supply chain Some of the ways we do this are:
- Virtual Workshops and forums: dialogue and feedback to extend ADNOC’s commitment to ethical business practices as defined in our Supplier and Partner Code of Ethics and HSE Management of Contractors.
- Supplier Support Service: hotline and email support for suppliers to communicate queries, suggestions and clarifications.
- Performance evaluations: reviews and audits to monitor compliance with performance standards, worker welfare expectations and HSE Plans.
Strategic PartnershipsOur transformation strategy has positioned ADNOC as a resilient and agile organization, able to respond quickly to the dynamics of the energy landscape in support of the UAE’s socio-economic development goals. This is has enabled us to maximize operational efficiency and capture synergies that have strengthened our overall performance.
We have also introduced innovative partnership opportunities to unlock and maximize value across our value chain.
Our expanded partnership and investment model has created more high-skilled jobs, attracted strategic foreign direct investment, introduced new contracts for the local private sector, and directly contributed to the UAE’s GDP. Since 2016, this has injected $65 billion in foreign direct investment into the UAE economy.
We have also leveraged these strategic partnerships to deliver value-add through technology and expertise that will ensure we continue to realize growth and strong returns for our shareholders.