Implications of ADNOC’s “In-Country Value Add” program (ICV) for Doing Business with ADNOC
The Government of Abu Dhabi announced a long-term plan for the transformation of the Emirate’s economy in November 2017, including to reduce reliance on the oil sector as a source of economic activity and a greater focus on knowledge-based industries. To support this effort, the Abu Dhabi National Oil Company (ADNOC) implemented an In-Country Value (ICV) program on January 1, 2018, with the objectives to diversify gross domestic product through increased expenditure on local goods and services, Emiratization, and personal development, and to ensure localization of strategic capabilities in the oil and gas industry. To compete for ADNOC contracts, as of April 1, 2018 all procurements require the submission of a certified ADNOC-ICV certificate that will be used to evaluate and select the contract awardee. This article provides an overview of ADNOC’s ICV requirements, their impact on the procurement process, and related foreign investment considerations.