The introduction of the nation’s ADNOC ICV Certification Services in Dubai and Abu Dhabi program gives companies a great chance to compete for tenders from government and semi-government agencies since the certification grants businesses a certain amount of weightage in tender evaluations. The Ministry of Industry and Advanced Technology launched the ICV certification in 2021.
In the year 2018 the ADNOC ICV Certification Services in Dubai and Abu Dhabi began a procurement-led ICV program, which included
- Corporate strategy,
- Localization of supply chains and
- The rise of local industries that are thriving and services
In addition, it attracts foreign investment in the country, boosting growth in the economy and optimizing exports creating lucrative job possibilities in the business sector, adding to change in the nation’s GDP as well as increasing R&D and spending on modern technology and accelerating privatization.
This blog explains ICV certification. ICV certification and describes its value to business entities within the UAE.
What is ICV Certification?
The UAE government’s National In-Country Value Program (ICV) supports the Minister of Industry and Technology’s responsibility to improve the effectiveness and sustainable growth of the UAE’s manufacturing sector.
The program examines the local manufacturing expenditure, local products and services investment, the hiring and education of Emiratis, and employment creation. The program encourages production in the UAE and redirects money spent on goods and services to the national economy.
Who is eligible to apply for the ICV Certification?
Any company, whether foreign or local, can obtain an ICV certificate by the ICV guidelines.
Tier-1 suppliers (suppliers supplying services or goods directly to Program Partners) might be required to disclose their ICV score in their tender appraisal and award procedure in the National ICV Program.
Lower and Tier 2 suppliers could be required to submit their ICV certificates to compete with Tier 1 suppliers in tenders.
Why is ICV Certification Require for Suppliers?
While an ICV certificate isn’t require for companies to partner with ADNOC, it adds value to the company for several reasons.
- The suppliers who sign up for the program stand to profit from the growing demand for local goods and services and the chance to contract with the government.
- Stakeholders and small and medium-sized businesses (SMEs) can gain from increased company growth because value chains are becoming more localized thanks to ICV. ICV program.
- ICV certification program is a great way to increase the number of suppliers in your area. ICV certification program opens up opportunities for local companies to create alliances with foreign companies looking to take advantage of a joint supply chain.
ICV certificate can still be part of tenders
- However, suppliers who do not possess an ICV certificate can still part of tenders, but the score they receive will be low, and they’ll be at a disadvantage compare to suppliers with a higher ICV score.
- ICV certificate holders ICV certificate can enjoy contractual advantages in partnership with federal agencies.
- For instance, every supplier who directly supplies goods or services to ADNOC and its members has to submit their ICV score along with ICV’s application (if required in the RFQ).at the time of tender bids. ICV certification is essential for any business participating in the ADNOC or group tender.
- In the same way, companies that do not engage directly in direct contact with ADNOC or other entities that participate but do work in Tier 1 supplier relationships for participating entities also need to obtain ICV certificates. ICV certificate. The ICV score evaluation shapes the ADNOC purchase initiative and creates an award policy.
Within the ADNOC award system, the bid evaluation process evaluates suppliers based on their ICV scores and awards the bidder with the highest score the first right to refuse.
It also means that bidders with ICV certificates are more competitive than suppliers without. Since more organizations join alliances with ADNOC to adopt ICV to support their procurement efforts, obtaining an ICV certificate is now essential.