Deloitte joins list of official certifiers for ADNOC's in-country value programme

24 April 2019 Consultancy-me.com

Deloitte has joined a list of official certifiers for ADNOC’s ‘in-country value’ programme, which ensures that suppliers are delivering benefits to the economy of the UAE.

The Abu Dhabi National Oil Company (ADNOC) and the local branch of global professional services giant Deloitte have signed an MoU for the Big Four leader to serve as an official assessment and certification body for ADNOC’s ICV programme (in-country value) – which seeks to support the Emirate’s economic diversification and national employment or “Emiratisation” efforts.

Launched at the beginning of last year, ADNOC’s ICV programme requires that suppliers are evaluated on an annual basis by a third-party verification body as to ICV performance, which includes consideration of elements such as local investment and employment as well as the source of manufactured goods and third-party spending, with the company’s ICV rating in turn forming an integral part of ADNOC’s tender evaluation and award process.

Following a successful first year of the programme – during which ADNOC contends AED 18 billion was returned to the UAE economy through its spending on local goods and services, the state-owned oil company has now doubled its roster of official ICV evaluators to 12 bodies, including newcomers Deloitte – with Deloitte now joining fellow Big Four firms KPMG, PwC and Ernst & Young, as well as Baker Tilly, Ardent and Protiviti.

“Deloitte is honoured to be one of ADNOC’s certifying bodies, working closely with ADNOC to implement this programme across the UAE,” said Deloitte UAE regional managing partner Mutasem Dajani. “Verifying suppliers’ ICV performance and ascertaining they meet ADNOC’s requirements will drive opportunities for local businesses in the emirates in line with ADNOC’s 2030 growth strategy,” he noted.

According to ADNOC, the expansion follows increasing interest among suppliers both locally and globally, with more than 2,000 having already obtained ICV certification ADNOC business and commercial support director Rashed Saud Al Shamsi; “We’re pleased with the constructive and positive feedback we’ve received from our partners and suppliers this past year, and we look forward to driving even more in-country value in the years ahead.”

There also appears room for much greater growth. In response to estimates that 20,000 oil & gas suppliers in the wider ADNOC network could be affected, PwC last year said; “not only are direct suppliers to ADNOC required to prepare and have accredited their own ICV scores, the calculation requires them to include the accredited ICV scores of their own suppliers and sub-contractors.” The impact of the programme then trickling all the way down the supply chain.

Al Shamsi continues; “The launch of ADNOC’s In-Country Programme was a critical step in catalysing our nation’s progress and development. That is why we’re proud to be deploying a total of 12 leading certification companies – some local, others global – all experts in their field, committed to serving our community of suppliers as they help us advance our in-country value programme’s mission to drive national prosperity and growth.”