In-Country Value (ICV) program was introduced by ADNOC for its suppliers. The program aims to boost ADNOC’s ICV contribution in Dubai, UAE by focusing on local supplier selection, development of UAE Nationals, and the localisation of critical functionalities in the oil and gas industry.
From 1 April 2018, all suppliers of goods or services for ADNOC are to calculate and declare their certified ICV score for the previous financial year, to demonstrate how they are helping to deliver ICV. Certification of the ICV score in Abu Dhabi, UAE needs to be completed by an ADNOC approved certifying body, on an annual basis, and submitted by the supplier to ADNOC with each proposal they make.
Calculation of ICV scores in Dubai, Abu Dhabi, Sharjah, UAE
ICV scores in Dubai, UAE calculated by assessing the economic value added within the UAE for the goods or services offered by the company, according to a pre-defined methodology. The following areas to be considered:
Contribution: 50% contribution for calculating ICV Score for services
Formula: ∑ Value of good & services procured per vendor & subcontractor x ICV of the vendor & subcontractor + Emirati Cost + 0.6* Expat cost divided by Total Revenue
Contribution: 50% contribution for calculating ICV Score for goods
Formula: Manufacturing cost incurred with in UAE+ Emirati Cost + 0.6∗ Expat cost divided by Total Revenue
Contribution: 25% contribution for calculating ICV Score for goods and services
Formula: Net Book Value of Assets in UAE divided by Net Book Value of Total Assets (10%) and Top up 15% on progressive basis (USD 5M – USD 50M) (15%)
Contribution: 15% contribution for calculating ICV Score for goods and services
Formula: Up to AED 200K Salary & benefits – 2%, Above AED 200K till AED 20M –progressive, and Above AED 20M – 15%
Contribution: 10% contribution for calculating ICV Score for goods and services
Formula: In terms of head counts, progressive increase as follows: a) 1 to 5– 1 to 3%, b) 6 to 50 – 4 to 6%, c) 51 to 200 – 7 to 9% and d) Above 200 – 10%
Contribution: Maximum upto 5% contribution for calculating ICV Score for goods and services
Formula: [Total Annual revenue from outside UAE (Export Revenue) divided by Total Annual revenue from UAE (revenue from inside + outside customers) excluding Re – Exports] plus [No. of Emiratis/100]