In 2018, the Abu Dhabi National Oil Company (Adnoc) introduced a procurement led In-Country Value (ICV) programme to encourage Emiratisation, GDP diversification and strategic considerations.
Then, earlier this year, following the success of the programme and in line with the economic goals of the government accelerator programme, Ghadan 21, the Abu Dhabi Department of Economic Development (ADDED) joined hands with Adnoc and launched the concept of a unified ICV certification process for suppliers in the UAE.
Aldar Properties and Abu Dhabi Ports had last year joined the unified ICV certification process and, along with Adnoc, and ADDED, are now referred to as Participating Entities. Adnoc has also signed agreements with Mubadala Investment Company and Emirates Nuclear Energy Corporation (ENEC) to partner on the programme. More entities are expected to join the ICV certification platform soon.
The unified ICV programme aims to consolidate the ICV certification process in a single ICV certificate that can be used by a supplier who intends to be part of the procurement process of the Participating Entities, whether as a primary or secondary supplier.
“The main objective of the ICV Certificate is to improve participation of the private sector, facilitate the diversification of Gross Domestic Product (GDP) and localise critical parts of the supply chain. In simple words, the supplier's spend that remains within the UAE or contributes to the UAE is calculated and considered as In-Country Value,” says Peeyush Joardar, Partner – ICV & Audit at MBG Corporate Services, one of the approved certifying bodies in the UAE.
As of December 2019, the Adnoc ICV programme has driven more than Dh44 billion ($12 billion) back into the UAE’s economy and has put more than 1,500 Emiratis in the private sector. More than 3,000 companies in the UAE are ICV certified.
Areas considered for ICV certification include goods manufactured, investment, Emiratisation, expatriate contribution, revenue from outside the UAE, and growth in investment, among others. The ICV programme has therefore evolved a new business line and has to be provided from the UAE.
The ICV certificate also helps companies and grants them the opportunity for the first right of refusal in the tender process. While companies who do not possess the ICV certificate will still be allowed to participate in Adnoc Group tenders, their ICV score will be considered as zero in the bid evaluation and they will be at a disadvantage compared to those with a higher ICV score.
“We can help you obtain your unified ICV certificate within a short turnaround time and have a team of experts with a track record of issuing ICV certificates across multiple industries,” he says. “Our job is to first make clients understand the ICV programme and determine factors that affect the ICV score. We then suggest steps for improving the score, including making recommendations about restructuring in organisational processes, legal entity consolidation, investment planning, supply chain optimisation and manpower rationalisation.”
ICV certification is based entirely on the audited financial statements of the company as per International Financial Reporting Standards (IFRS). Financial statements should not be older than two years from the certification year. And for companies with multiple entities, each licence within a group is considered an independent legal entity even if ownership is the same.
“But if a company has different branches in the same emirate with identical activities and ownership listed on the licences, then one combined ICV certificate is allowed for the company in that emirate,” he explains.
Once attained, the ICV certificate is valid for a period of 14 months from the date of issue of audited financial statements. The supplier can get re-certification done during the validity of the ICV certificate if he chooses to, using the same audited financial statements, but the validity of 14 months from the first issue will remain the same.
MBG Corporate Services has set up dedicated in-house teams in Abu Dhabi, Dubai and Sharjah to help and arrange ICV certification. Established in 2002, MBG Corporate Services provides solutions and strategies that drive business transformation. With its headquarters in Singapore, and more than 150 staff working in its UAE office, the company works with clients across Asia, Europe and the Middle East. It has 16 global offices spread across six countries.
For more information about how MBG Corporate Services can help with your ICV certification, click here, email uae@mbgcorp.com or WhatsApp +971 52 640 6240
Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
RESULTS
6.30pm: Longines Conquest Classic Dh150,000 Maiden 1,200m.
Winner: Halima Hatun, Antonio Fresu (jockey), Ismail Mohammed (trainer).
7.05pm: Longines Gents La Grande Classique Dh155,000 Handicap 1,200m.
Winner: Moosir, Dane O’Neill, Doug Watson.
7.40pm: Longines Equestrian Collection Dh150,000 Maiden 1,600m.
Winner: Mazeed, Richard Mullen, Satish Seemar.
8.15pm: Longines Gents Master Collection Dh175,000 Handicap.
Winner: Thegreatcollection, Pat Dobbs, Doug Watson.
8.50pm: Longines Ladies Master Collection Dh225,000 Conditions 1,600m.
Winner: Cosmo Charlie, Pat Dobbs, Doug Watson.
9.25pm: Longines Ladies La Grande Classique Dh155,000 Handicap 1,600m.
Winner: Secret Trade, Tadhg O’Shea, Ali Rashid Al Raihe.
10pm: Longines Moon Phase Master Collection Dh170,000 Handicap 2,000m.
Winner:
RESULT
Kolkata Knight Riders 169-7 (20 ovs)
Rajasthan Royals 144-4 (20 ovs)
Kolkata win by 25 runs
Next match
Sunrisers Hyderabad v Kolkata Knight Riders, Friday, 5.30pm
Start-up hopes to end Japan's love affair with cash
Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.
Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.
Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.
Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.
Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.
England XI for second Test
Rory Burns, Keaton Jennings, Ben Stokes, Joe Root (c), Jos Buttler, Moeen Ali, Ben Foakes (wk), Sam Curran, Adil Rashid, Jack Leach, James Anderson
MATCH INFO
Champions League quarter-final, first leg
Manchester United v Barcelona, Wednesday, 11pm (UAE)
Match on BeIN Sports
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
Nancy 9 (Hassa Beek)
Nancy Ajram
(In2Musica)
Off-roading in the UAE: How to checklist
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The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
