The Abu Dhabi National Oil Company (ADNOC) announced its In-Country Value (ICV) Program has driven more than AED 26 billion ($7 billion) back into the UAE economy in 2019, bringing its total ICV spend, to date, to AED 44 billion ($12 billion). The amount that ADNOC and its contractors spend on local products, manufacturing, assembly facilities, services and infrastructure is expected to increase further as ADNOC continues to deliver against its AED 486 billion capital expenditure (CAPEX) plan for 2019-2023.
The news was announced at ADNOC’s 4thannual Business Partnership Forum, where the company thanked the private sector for capitalizing on a wide range of commercial opportunities across the marketplace and for embedding ICV into their procurement processes, helping to ensure that ADNOC – and its supplier community – remains a primary contributor to the UAE’s socio-economic growth and development.
Addressing Forum attendees, H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “For the past 48 years, ADNOC has been the backbone of the UAE economy. In line with the economic objectives set forth in ‘Tomorrow 21’, the Abu Dhabi blueprint for economic growth, ADNOC will maintain a robust, profitable relationship with our community of suppliers to ensure we, together, realize the UAE Leadership’s bold vision.
“ADNOC’s In-Country Value Program underpins this entire effort. It symbolizes our unwavering commitment to supporting local businesses and reaffirms our role as the primary driver of the UAE’s socio-economic development, economic diversification and GDP growth. In partnership with the private sector, ADNOC will continue to stimulate more commercial opportunities for suppliers, improve the transfer of knowledge within the oil and gas sector and create more private-sector employment opportunities for UAE nationals – all of which will help to secure our nation’s prosperous future,” H.E. Dr. Al Jaber added.
To deepen the impact of the ADNOC ICV Program, H.E. Dr. Sultan Al Jaber announced the launch of the company’s small- and medium-sized enterprises (SMEs) initiative. This initiative will focus on enabling the UAE’s SME resources to participate in the growth of ADNOC and the UAE economy. The structured to more effectively – and quickly – integrate SMEs into the oil and gas supply chain.
Speaking in an Emiratization-focused one-on-one discussion at the Forum, H.E. Fareda Al Ali, Assistant Undersecretary for Human Resources Employment at the UAE Ministry of Human Resources and Emiratization, discussed the profound socio-economic impact of ADNOC’s ICV Program – particularly, as it relates to Emiratization – praising ADNOC for its role in enabling more than 1,500 private-sector job hires for UAE nationals since the Program’s launch in January 2018.
The session with H.E. Farida Al Ali was followed by a panel discussion with senior leaders from five strategic suppliers: Abdulla Nasser Al Mansoori, Chairman, Almansoori Specialized Engineering; Christian Cravedi, Senior Vice President and Hub Manager, IMEA, ABB; Ghassan Mirdad, President, Eastern Middle East, Schlumberger; Masaood Rahma Al Masaood, Vice Chairman, Al Masaood Oil Industry Supplies & Services; and Yousef Al Nowais, Chairman & Managing Director, Arab Development. Panellists shared their experiences as early adopters of ADNOC’s In-Country Value Program, including key achievements and areas of focus in the year ahead, especially as they – and other suppliers – look to drive deeper alignment with the UAE’s broader Emiratization efforts and initiatives.
Attendees also received an update on the execution of ADNOC’s AED 165 billion Downstream Investment Plan, which will transform Ruwais into one of the world’s leading integrated petrochemicals complexes. They learned how this growth will enable new opportunities for the local private sector and were presented with shortlisted opportunities that could be pursued. As part of its commitment to support this process, ADNOC has proactively screened – based on market- and techno-economic considerations – these opportunities, which represent a natural extension of the various value chains developing in Ruwais.
At the Forum, ADNOC announced that, in addition to providing the required feedstocks for these prospective projects, it is also creating a private-sector ecosystem that will nurture the growth of SMEs through the Ruwais Derivatives and Conversion Parks. Investors will be able to benefit from the existing infrastructure, with power, gas, steam, water, waste treatment and other utilities enabled by ADNOC. They will also have access to Ruwais’s expanding residential community and offerings, which includes attractive living accommodations for investors, their employees and families.
Over the course of the last three years, ADNOC’s Group Procurement function has implemented an innovative Group-wide transformation program to ensure the company proactively responds to market dynamics, captures commercial opportunities and optimizes its value chain as ADNOC delivers against its five-year business plan and its 2030 smart growth strategy.