Abu Dhabi Awards Tenders to Companies Holding ICV Certificates | Push Digits Chartered Accountants

Abu Dhabi Awards Tenders to Companies Holding ICV Certificates

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Abu Dhabi Awards Tenders to Companies Holding ICV Certificates

The Government of Abu Dhabi awarded tenders worth Dh1.06 billion ($288.8m), to companies holding in-country value certificates or of the Abu Dhabi Local Content programme, in the first nine months of the year 2021, in efforts to boost the economy of UAE.

By the end of the third quarter in 2021 more than 320 deals were awarded, to ICV certificate holders, out of a total of 583 government awards valued at Dh2.4 billion. It was said in a report released by Industrial Development Bureau of the Abu Dhabi Department of Economic Development. 

These tenders with local content value were 41.5 percent of the deals awarded to companies holding ICV certificates. Which in turn means an injection of Dh415 million to the local economy to support small and medium enterprises.

The ICV programme is a part of the Projects of the 50 initiatives, which is being carried out at 12 national companies and across all the federal entities. 

The programme is designed to stimulate demand for local products and services and to encourage local manufacturers. It is aimed to diversify and attract foreign investment in the domestic industrial sector.

Its focus is to boost economic growth and support local industries. Also redirecting a big portion of public spending to the national economy.

The programme will contribute an additional Dh51 billion to Dh54 billion to local GDP by 2031, also creating up to 120,000 jobs for emirate’s nationals, localise supply chains and attract more investment.

The programme is also aimed at redirecting Dh55 billion worth of government spending on goods and services into the local economy by 2025, rising from Dh39 billion in 2020.

The award highlights the efforts made by the Abu Dhabi government to achieve the objective of stimulating local economy.

The ADLC programme is a part of the Ghadan 21 economic stimulus, and has 26 government entities participating at the end of the third quarter in 2021, as compared to only 17 participating entities in the same period a year earlier.

The undersecretary of Abu Dhabi Department of Economic Development, Rashed Al Bloosi, said in a statement that we want to engage more entities in the programme by adding more benefits to certified companies and encouraging more companies to gain ICV certification in order to achieve the ADLC programme’s objectives.

According to the Abu Dhabi Department of Economic Development data, the environment sector was on top with 39 percent of tenders awarded while the services and construction sectors were with 21 percent and 19 percent of awards respectively.

Supplies accounted for 10 percent while the information and technology at 9 percent and the audit and construction at 2 percent.

Capital expenditure projects were 27 percent of the tenders awarded to ICV holding companies while operation expense projects were for the remaining 73 percent.

The data shows the awareness about the importance of this programme in the development of the local companies and the local economy.

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