322 government tenders with a total value of AED 1.055 billion were awarded to companies holding In-Country Value (ICV) certificates of the Abu Dhabi Local Content (ADLC) programme by end of third quarter-2021, ADLC performance report showed.
The report, issued by ADDED’s Industrial Development Bureau (IDB), noted that total government tenders awarded during the same period reached 583 tenders with a total value of AED 2.4 billion.
Tenders with local content value represent 41.5% of tenders awarded to ICV certificate holding companies, which means AED415 million were reinjected in the local economy to support local products and increase contribution of SMEs to the GDP.
ADLC programme, launched by ADDED as part of economic stimulus initiatives to support the private sector through the Abu Dhabi’s accelerator programme ‘Ghadan 21’, witnessed wide participation from government entities. 26 government entities in the emirate awarded tenders to ICV holding companies by end of Q32021 - compared to 17 entities in 2020, a matter which reflect keenness to enhance ADLC and public-private sectors partnership.
According to economic activities, added value of tender awarded are as follows; environment 39%, services 21%, construction 19%, supplies 10%, information and technology 9%, and audit and consultancy 2%. CAPEX projects represent 27% of total tenders awarded to ICV holding companies with local content value while OPEX projects accounted for 73% of total.
ADLC programme aims to boost the emirate’s GDP, increase Emiratisation rates in the private sector by setting a minimum percentage of Emiratisation for companies to receive ICV certificates as well as promoting knowledge-based economy and adoption of advanced technology.
H.E. Rashed Abdulkarim Al Blooshi, Undersecretary of ADDED, said “The positive indicators of ADLC shows government entities’ awareness of the important role played by this programme in the local economy, diversification, sustainable growth, and government spending increase especially in knowledge-based industries and job creation for UAE nationals in the private sector as well as strengthening public-private sectors partnership to achieve development objectives of the emirate.”
“We continue our efforts to achieve ADLC’s objectives by engaging more entities in the programme, adding more benefits to certified companies, and encouraging more companies to gain ICV certificate and benefit from its opportunities,” H.E. added.
The tenders awarded to ICV certificate holding companies with local content belong to 26 government entities, including ADDED, Department of Municipalities and Transport, Abu Dhabi Municipality, Al Ain Municipality, Al Dhafra Municipality, Integrated Transport Center, the Abu Dhabi Agriculture and Food Safety Authority, Housing Authority, Department of Health, Abu Dhabi Waste Management Center – Tadweer, Family Development Foundation, Al Ain Zoo, Louvre Abu Dhabi, Social Support Authority, Department of Culture and Tourism, Department of Education and Knowledge, General Administration of Customs, Statistics Centre, International Fund for Houbara Conservation, Abu Dhabi Quality and Conformity Council, Emirates College for Advanced Education, Abu Dhabi Sports Council, Zayed Higher Organization for People of Determination, Abu Dhabi Digital Authority, Environment Agency, and Department of Energy.
“We are building on ADLC’s successes and aim to make necessary improvements to increase SMEs contribution to GDP of Abu Dhabi. We will focus on simplifying ADLC by full automation of processes, tools and bidding and continue our efforts to increase awareness about the programme,” H.E. Rashed Al Blooshi concluded.
