ADDED announces ‘Abu Dhabi Local Content’ program to cover 1,244 government tenders worth AED 15 billion

The Industrial Development Bureau (IDB) of the Abu Dhabi Department of Economic Development (ADDED) has announced that the ‘Abu Dhabi Local Content’ (ADLC) program will cover more than 1,244 government tenders worth AED 15 billion. The tenders were submitted by government and semi-government entities to invite bids for large procurement projects announced during the first quarter of this year.

H.E. Mohammed Ali Al Shorafa, Chairman of ADDED, said that the program aims to encourage companies dealing with government entities in Abu Dhabi to invest in the local market in an effort to strengthen the supply chain. The private sector investors are expected to benefit from local products, expertise, and talents. 

H.E. Al Shorafa explained that government spending as an economic pillar is critical to spurring the country’s socio-economic progress. He said that, under ADLC program, companies are encouraged to ramp up their productivity and further add value to locally produced products. 

According to H.E. Al Shorafa, the program was launched in response to the directives of H.H. Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council, to implement and support all development projects in Abu Dhabi.

H.E. explained that the program aims to direct government spending towards the development of local content with all its components within the emirate, improvement of government procurement process, fulfillment of development goals, and promotion of a knowledge-based economy in line with to the Abu Dhabi’s economic visions, strategies, and plans, along with the existing regulations. 

H.E. Al Shorafa added that companies holding an in-country value (ICV) certificate issued by ADDED in cooperation with the Abu Dhabi National Oil Company (ADNOC) will be prioritized in the awarding of government tenders, especially those with high rating. These companies will also have an opportunity for price and quality competition for offered services prices compared to other participating organizations.

In 2019, ADDED initially implemented the ADLC program as part of a trial period. During this period, the Department saw positive results with certificate holders benefitting from approximately AED 890-million worth of projects and tenders. 

H.E. Rashed Abdul Karim Al Balooshi, Undersecretary of ADDED, said that IDB conducted several awareness workshops during the first quarter of this year for around 60 government and semi-government entities involved in the implementation of the ‘Abu Dhabi Local Content’ program. More than 1,500 representatives of supply chain companies attended the workshops as well. The IDB-organized workshops were conducted via the internet and social media channels as precautionary measures during the current health crisis. 

H.E. further stated that the ‘Abu Dhabi Local Content’ program seeks to encourage more companies and factories that have taken part in government tenders to increase their economic contributions in Abu Dhabi in support of the Emiratization policy and numerous local investment and supply chain initiatives. The department has invited registered consultancy companies operating in Abu Dhabi to register for the program and be considered as accredited bodies authorized to accredit local content certificates, according to a mechanism to measure standards and technical requirements identified by ADDED in compliance with government procedures designed to open new markets and increase competition.

H.E. Al Balooshi said that five new consultancy companies are scheduled to be given the ICV certificates, bringing the total number of organizations accredited by ADDED to 11. These firms are entrusted to apply the approved computation methods as well as assist commercial, service, and industrial establishments in submitting their bids to the government.

The 11 consultancy companies were granted ICV certificates after meeting the standards set to help and encourage companies to invest in Abu Dhabi and the UAE markets. They will also assist the government in promoting local investments and accelerating the development of key domestic sectors.