ADNOC SIGNS DEAL TO PROVIDE BOOST FOR LOCAL COMPANIES

▶ Criteria such as Emiratisation record will be considered before major contracts are awarded

As part of the Dh50 billion Ghadan 21 stimulus initiative, a deal has been struck to provide UAE companies in the emirate with more opportunities, improve transparency, create jobs and accelerate the private sector’s contribution to the Abu Dhabi economy.

On Tuesday, the Abu Dhabi Department of Economic Development and the Abu Dhabi National Oil Company signed a preliminary agreement to extend Adnoc’s local supplier certification programme across the government’s procurement procedures.

The in-country value programme (ICV) was developed by the state-owned energy company to support the local economic trickle-down effect through contracts it awards for projects, which are typically worth billions of dirhams.

Under the programme, companies would be certified based on their contribution to the country’s economy and this certification will help them win jobs from Adnoc. The certification is now set to apply across the public sector.

“Our partnership with Added to unify the process and standards for ICV certification will deepen the impact of the ICV initiative we launched, driving economic diversification and further catalysing the UAE and Abu Dhabi’s socioeconomic development,” said Dr Sultan Al Jaber, Minister of State and Adnoc group chief executive.

“This agreement will help stimulate more commercial opportunities for local companies and create more private-sector jobs for UAE nationals,” he said.

ICV certification takes into account goods produced or manufactured locally, the value of spending on locally-procured products and services, a company’s local investment, its Emiratisation record and expatriate employees’ contribution to the national economy.

Adnoc launched the ICV programme two years ago to coincide with its own 2030 smart growth strategy, which involves significant spending and investment. More than 3,000 suppliers have been certified so far and the programme has added Dh44 billion into the

UAE economy and created more than 1,500 private-sector jobs for Emiratis.

“We wanted to standardise the measures followed by both Adnoc’s ICV programme and Added’s Local Content programme to enhance the ease of doing business in Abu Dhabi and at the same time promote In-Abu Dhabi Value investments,” said Mohammed Ali Al Hammadi, chairman of Added.

“This initiative reflects the drive to consolidate efforts among government and semi-government entities to support the growth of the private sector, and direct government spending towards the development of local content.

“Added is proud to be supporting Ghadan 21’s goal of transforming Abu Dhabi’s economy,” he said.

Last year, Added introduced the Abu Dhabi Local Content initiative to encourage private sector companies to participate in government tenders to increase their economic contribution in the emirate.

The new measures follow Abu Dhabi government’s plans to issue tenders worth Dh10bn under the public-private partnership model to boost infrastructure investment in the UAE capital.

The tenders announced last week are part of a measures dedicated to increasing the use of PPPs and encouraging private sector involvement through the Ghadan 21 programme launched last year by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council.

Ghadan 21 has facilitated a series of initiatives, including the launch of a new technology centre, Hub71, at the Abu Dhabi Global Market, now home to 39 start-ups. A Ventures Fund worth Dh535 million was also established to boost start-ups.

It will help stimulate more commercial opportunities for local companies and create private-sector jobs for UAE nationals DR SULTAN AL JABER Minister of State and Adnoc group chief executive