The Abu Dhabi National Oil Company (ADNOC) announced today, it will boost in-country value (ICV) to the United Arab Emirates (UAE) to support post-Covid economic growth through its hugely successful ICV program.
As part of this commitment, ADNOC will drive over AED160 billion ($43.6 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).
Delivering the opening remarks at ADNOC’s Private Sector and ICV Forum which had over 3000 virtual attendees, His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO said the ICV target represents a substantial financial spillover impact that will create more opportunities for the private sector and support post-COVID economic growth.
“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 local economy. Today’s forum is all about reinforcing the critical symbiotic relationship between ADNOC and the private sector to realize the simple goal of creating even more economic value for the UAE,” H.E. Dr. Al Jaber said.
Outlining the achievements recorded by the ICV program, H.E. Dr. Al Jaber stressed ADNOC is doubling down on ICV to deliver greater value to the UAE. This year, ADNOC spent AED 5 billion ($1.36 billion) on more than 400 local Micro, Small, and Medium Enterprises (MSMEs) through the program.
ADNOC’s ICV program is aimed at nurturing new local and international partnerships and business opportunities for the private sector, fostering socio-economic growth, and creating job opportunities for Emiratis. Launched in January 2018, the program has driven more than AED 76 billion ($20.7 billion) back into the UAE’s economy and created over 2,000 private-sector job opportunities for Emiratis. Over 4,200 suppliers are certified in the program which has more than 20 certifying bodies.
H.E. Dr. Al Jaber went on to thank ADNOC’s private-sector partners, contractors and suppliers that have integrated the ICV program into their procurement processes and continue to support the program.
“Your proactive involvement in nurturing the growth of the private sector is adding value to the UAE’s economy every day. You have all played a key role in shaping the program as a successful model for private sector growth that is now being adopted more widely by the government,” H.E. Dr. Al Jaber said.
The lessons learned from ADNOC’s ICV program over the last three years have been absorbed into the mandate of the new Ministry of Industry and Advanced Technology according to H.E. Dr. Al Jaber.
“ICV represents an important element of the new ministry’s strategy that will be rolled out in partnership with the private sector and in 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,” H.E. Dr. Al Jaber said.
Concluding his remarks, H.E. Dr. Al Jaber called on the private sector to join hands and identify “win-win growth opportunities, not only within ADNOC’s value chain but also across the entire UAE economy.”
Following H.E. Dr. Al Jaber’s speech, a ministerial panel session took place featuring H.E. Dr. Ahmed bin Abdullah Humaid Belhoul Al Falasi, Minister of State for Entrepreneurship and Small and Medium Enterprises; H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; and H.E. Mohammed Ali Al Shorafa Al Hammadi, Member of the Executive Council and Chairman of the Abu Dhabi Department of Economic Development (ADDED).
H.E. Dr. Al Falasi said: “ADNOC’s ICV program has proven to be a catalyst for entrepreneurship and SME growth in the UAE with over 400 SMEs benefiting from this program. I look forward to working closely with ADNOC to identify synergies that can accelerate the development of ecosystems that have a strong societal and economic impact for the UAE.”
H.E. Dr. Al Zeyoudi said: “The development of the petrochemical sector will play an important role in the UAE’s post-COVID economic recovery and will be a critical driver of our industrial growth and economic diversification. Through ADNOC and the ICV program, the UAE will continue to attract significant foreign direct investment to the country and serve as the partner of choice for investors across the hydrocarbon value chain.”
H.E. Al Hammadi said: “The Department of Economic Development has seen extremely promising results in terms of both economic activity and local content. Today, leading UAE businesses have adopted ADNOC’s ICV framework, helping to expand the ICV footprint to more than 4,200 suppliers. Adopting the ICV program in line with the the Abu Dhabi Local Content Program (ADLC) has boosted the program’s effectiveness in creating positive impact to the local economy, and will continue to do so in terms of providing new job opportunities for Emiratis as well as increase the rate of Emiratization. It also widens the prospects for local businesses to contribute to the growth of priority sectors such as agriculture and smart manufacturing. ADDED and ADNOC will keep building on the milestone we achieved early this year by unifying the process and standards for ICV certification, to increase their contribution to the development of the emirate’s local economy.”
At the forum, ADNOC announced that several international companies will establish manufacturing facilities in the UAE and expand existing facilities as part of their support for the ICV program.
Schlumberger is investing in two state-of-the-art facilities in the country. One of the facilities is a large-scale integrated workshop in the Industrial City of Abu Dhabi (ICAD) to support oil and gas projects and the other an advanced Cameron wellhead manufacturing facility where Schlumberger will manufacture, assemble, test and repair a full suite of oilfield equipment.
Marubeni, Tenaris, and Vallourec are developing and expanding threading facilities in the UAE while Baker Hughes is providing wellhead repair and maintenance activities as well as field services for customers across the Middle East from its wellhead facility in Abu Dhabi.
The forum also included a panel discussion on the expansion of ICV featuring H.E. Abdulla Al Maeeni, Representative of Ministry of Industry and Advanced Technology; H.E. Rashed Al Balooshi, Undersecretary of ADDED; and Talal Al Dhiyebi, CEO of Aldar.
Attendees were provided firsthand accounts of the impact of ICV on the private sector during a panel session with senior leaders from four companies: Ahmed Al Dhaheri, CEO of NPCC; Shamis Ali Al Dhaheri, Group Managing Director of Ali & Sons Holding LLC; Rashed Saif Jabr Al Suwaidi, Chairman of Horizon Energy, Horizon Group; and Guillermo Cobelo, Regional CEO of Tecnicas Reunidas.
The panelists shared their experiences as adopters of ADNOC’s ICV Program, including key achievements and areas of focus in the year ahead, especially as they – and other suppliers – look to drive deeper alignment with the UAE’s broader Emiratization efforts and initiatives.
Attendees also received details of investment opportunities for local businesses to partner with TA’ZIZ – ADNOC’s joint venture with ADQ – in the planned Ruwais Derivatives Park. The Ruwais Deriviativatives Park is a key part of ADNOC’s downstream expansion strategy launched in 2018. ADNOC also highlighted procurement opportunities across its full value chain that will support the delivery of its 2030 strategy.
Speaking at the forum, Omar Suwaina Al Suwaidi, Director, Commercial & ICV Directorate shared futured procurement opportunities across ADNOC’s value chain which will support the delivery of ADNOC’s 2030 strategy. He concluded the forum by outlining plans to build on the success of the ICV program to deliver greater value for the UAE.
