UAE’s state-owned oil firm Abu Dhabi National Oil Company (ADNOC) is reportedly expanding its in-country value (ICV) program to encourage post-COVID economic development in the region.
As part of this expansion, the company will drive over $43.5 billion (Dh160 billion) back into the UAE economy over the next 5 years, as it executes its capital expenditure (CAPEX) recently approved by Abu Dhabi’s Supreme Petroleum Council (SPC).
“ICV is a powerful mechanism for ensuring more economic value remains in the UAE from the contracts we award. In short, we want to make sure that what we spend here, stays here, and helps stimulate the growth of the private sector and the local economy. Your proactive involvement in nurturing the growth of the private sector is adding value to the UAE’s economy every day. ICV represents an important element of the new ministry’s strategy that will be rolled out in partnership with the private sector and coordination with all relevant stakeholders. Ultimately, the success of this strategy will depend on the close collaboration and engagement between the public and private sectors. Together, we will expand strategies that enable domestic manufacturing and enhance the growth of local content.”
“These will create more skilled job opportunities for Emiratis while advancing the UAE’s economic diversification. Importantly, our combined efforts will play an essential role in building resilience and driving the UAE’s post-COVID economic growth,” he further added.
The national oil company in the region, Saudi Aramco has made in-country value generation a key driver for stimulating growth in the private sector and boosting the development of local employment. Saudi Aramco, through its ‘In-Kingdom Total Value Add‘ initiative, aims to cover at least 70 percent of its Saudi Arabian firms’ procurement expenses by 2021.
Last year, ADNOC began its in-country value initiative by investing $4 billion (Dh18 billion), to ensure that local suppliers and businesses are engaged to support the domestic economy through its value chain. Dr. Al Jaber said that ADNOC is extending the program further, spending $1 billion (Dh5 billion) this year to more than 400 local micro, small and medium-sized enterprises (SMEs).
ADNOC said that the ICV program has pushed more than $20 billion (Dh76 billion) back into the UAE economy so far and generated over 2,000 private-sector employment possibilities for Emiratis. Over 4,200 suppliers through more than 20 certifying bodies have been accredited under the ICV scheme.