UAE implements ‘in-country value’ program to boost economy
ICV aims to support local industries and redirect expenditure into the national economy
Dubai: UAE’s Ministry of Industry and Advanced Technology and the Ministry of Finance announced that they have started implementing the In-Country Value Program on the procurement policies of all 45 federal government entities, including ministries, federal authorities and institutions.
The aims to stimulate the industrial sector in the UAE, enhance its competitiveness and support the country’s future economic diversification plans.
Mohamed Al Hussaini, Minister of State for Financial Affairs, said that the ICV Program represents one of the priorities of the “Projects of the 50”, as it will support the industrial sector, upgrade its capabilities and enhance its contribution to economic diversification efforts.
“In recent months, we have worked with our partners in the Ministry of Industry and Advanced Technology to ensure the efficiency and effectiveness of the procedures that will be developed to implement the program,” said Al Hussain.
“We were keen to include the program’s mechanisms in federal government procurement policies so that the percentage of the national added-value is calculated from the total amounts spent by suppliers within the country on manufacturing, local products and services, the volume of investment, and the appointment and qualification of national cadres,” he added.
Redirecting into the local economy
The program will contribute to redirecting more than 42 per cent of the purchases and contract expenses of government entities and major companies to the national economy, which will raise the demand for Emirati services and products from the current Dh33 billion to Dh55 billion by 2025. This will be accompanied by an increase in the number of approved suppliers to 7,300 companies.
“The program witnessed an encouraging response from large institutions and companies in the country, now totaling 13 entities, who wished to support the integrated strategy of the Ministry of Industry and Advanced Technology and the enabling and supportive national programs,” said Sultan Al Jaber, Minister of Industry and Advanced Technology
He added that the program, which will be implemented through the collaboration of the Ministry of Industry and Advanced Technology, the Ministry of Finance and private sector institutions, will stimulate the growth of the industrial sector and enhance its competitiveness. He pointed out that the implementation of the ICV Program at the federal level contributes to developing the competitive advantage of national products and services, and affords them more space to develop, grow and integrate the applications of the Fourth Industrial Revolution and advanced technology solutions.
Information and procedures
Abdullah Al Shamsi, Assistant Undersecretary for the Industrial Development Sector at the Ministry of Industry and Advanced Technology, presented the In-Country Value Program and its benefits, as well as its importance to the national economy, the responsibilities of the program’s national committee, and the incentive system provided by the Emirates Development Bank.
He said, “The In-Country Value Program will increase the demand for products and services of Emirati companies, promoting their capabilities and attracting more foreign investments to the country’s industrial sector.”
Strategic goals
In order to encourage companies to obtain the In-Country Value Certificate, the Emirates Development Bank, under an agreement with the Ministry of Industry and Advanced Technology, will provide competitive financing solutions to local suppliers and member companies in the program, in a way that will raise the demand for Emirati services and products.
Ministry of Finance’s role
Mariam Al Amiri, Assistant Undersecretary for General Financial Management, indicated that the Ministry implemented the requirements of the ICV program by amending the federal government’s procurement policy.
She affirmed that the digital procurement policy will achieve numerous objectives in support of the ICV program. This begins with the program’s guidelines, with ICV requirements now added as a basic standard for evaluating suppliers and affording them a competitive advantage.
She added that the policy was amended to ensure that these requirements are reflected in the current procurement system as well as the new digital platform, noting that an introductory workshop was held for federal authorities to familiarise them with the amendments to the government procurement system in line with the program.
Suppliers of all federal agencies will be asked to submit an ICV certificate for tenders related to the products or services mentioned within the ICV program’s framework, while applying a 25 per cent weighting on them when evaluating bids on that basis.
The new ICV guidelines go hand in hand with digitalising the procurement platform, simplifying supplier procedures in the registration process and reducing fees. Online bidding is introduced to offer the best prices in an easy manner, in addition to encouraging SMEs to participate in bidding by granting them special privileges.