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Abu Dhabi’s ADNOC to spend over Dhs18bn on local market by year-end

Abu Dhabi’s ADNOC to spend over Dhs18bn on local market by year-end

The Abu Dhabi firm is looking to boost local spending under its ICV programme, launched earlier this year

Abu Dhabi National Oil Company (ADNOC)’s spend on local goods and services is expected to reach over Dhs18bn by the end of 2018, the company announced on Thursday.

The local spend is part of ADNOC’s in-country value (ICV) initiative and marks a ‘significant year-on-year increase’, a statement said.

The ICV programme, launched in January 2018, aims to encourage private sector partnerships and opportunities under the company’s 2030 smart growth strategy, boost socio-economic development, improve knowledge-transfer and generate jobs for UAE nationals.

Around 1,500 local suppliers have obtained ICV certification. The evaluation criteria takes account of goods manufactured in the UAE, the value of third-party spend in the country, a company’s investment in the UAE and its emiratisation record, as well as the contribution of expatriate employees, who are based in the country, to the UAE economy.

The evaluation also takes account of a supplier’s future plans to increase ICV, as well as operating costs, along with any exports created.

Looking ahead, ADNOC said its spend on local goods and services is expected to increase even further in the coming years as recently awarded contracts progress to the implementation phase.

As part of its procurement forecast, ADNOC also disclosed that tenders will be issued in the areas of fabrication, FEED engineering, engineering and construction, drilling equipment and services, gas turbines, heat exchanges, instrumentation, thermal equipment, and vessels and tanks.

Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “Our ICV programme is already making an important contribution by creating business and investment opportunities in the private sector, increasing the purchase of local goods and services and the employment of UAE nationals, and developing the knowledge sector.

“With ICV now included as part of all tender evaluations and award processes, the amount of ICV created will continue to increase,” he said.

The ICV initiative is part of ADNOC’s 2030 smart growth strategy, which was recently approved by Abu Dhabi’s Supreme Petroleum Council.

Under the plan, ADNOC will invest Dhs486bn between 2019-2023 to create new employment opportunities for UAE nationals and further increase the use of local products, manufacturing and assembly facilities, services and infrastructure.

The ICV programme will also support the economic objectives of the ‘Tomorrow 21’ economic growth strategy announced by Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed, the statement added.

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