ADNOC In Country Valuation Program in UAE launched in 2018 is a great endeavour by Abu Dhabi National Oil Company (ADNOC). The ICV program UAE initiative intends to boost the UAE’s economic growth and diversification by extracting the most value from its oil and gas reserves. Participating Entities (PE) can also localize their commercial operations and contribute to the UAE’s economic growth.
ICV’s Main Objectives
- Emiratization: the process of increasing Emirati job possibilities in the private sector.
- GDP Diversification: In order to foster diversification, more goods and services are purchased within the country.
- Strategic considerations: For certain types of businesses, critical elements of the value chain are localized.
The ICV Program UAE score is an important component of the Participating Entities (PE) bid evaluation, and it will give suppliers and vendors more weight in the award process. The ICV certification scheme also benefits entities that aren’t directly involved with the bids; ICV certified supplier “spend” that stays in the UAE or contributes to the UAE economy is incorporated into the ADNOC ICV valuation program in UAE.
Participating Entities actively urge suppliers to participate in an ICV review procedure in order to get an ICV certification. To compete in PE tenders, you do not need to have an ICV certificate. Suppliers who hold an ICV certificate, on the other hand, will have an edge throughout the tendering process.
Important Aspects in ICV Certification
- ICV certification is based on the businesses’ most recent audited IFRS financial statements, which must be no more than two years old at the time of certification.
- For newly created firms (less than ten months old) that do not have audited financial statements, management accounts for up to ten months of period can be used to calculate ICV.
- The ICV certificate is valid for 14 months from the date of the audited financial statements’ publication.
- ICV Scores are determined by measuring the economic value added within the country for the goods or services provided by the company, using a pre-defined methodology.
Goods manufactured, investment, Emiratization, expatriate contribution, revenue from outside the UAE, and investment development are among the areas evaluated for ICV certification. As a result, the ICV program has grown into a new business line that must be delivered from the UAE.
The ICV program UAE is a forward-thinking initiative that encourages expansion, diversity, and growth. BUCHPRUFER CONSULTANTS, established in 2007, has been assisting and providing devoted outsourcing services to ICV approved auditors in UAE in coordinating ICV certification in strict compliance with the ADNOC guidelines.