Abu Dhabi DED applies the local content program to 4421 tenders for government projects worth 51 billion dirhams

Abu Dhabi DED applies the local content program to 4421 tenders for government projects worth 51 billion dirhams

09 Apr 2020
Industrial Development Bureau, DED - Abu Dhabi

The Industrial Development Office of the Abu Dhabi Department of Economic Development announced the implementation of the Abu Dhabi Local Content Program on 1,244 tenders submitted by governmental and semi-government entities and companies, with a total value of 15 billion dirhams, through the procurement projects that were submitted during the first quarter of this year. His Excellency Muhammad Ali Al-Shurafa, Head of the Department said that the application of local content to the issuance of tenders contributes to encouraging companies that deal with government agencies in the Emirate of Abu Dhabi to invest in the local market in the emirate in particular and the state in general.

His Excellency affirmed that government spending is one of the most important pillars of the economy and the main incentive is economic and social production, as the Abu Dhabi Local Content Program contributes to encouraging establishments and companies to continue to increase productivity and achieve added value for the local product, which translates into the directives of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the Armed Forces and Chairman of the Executive Council of the Emirate of Abu Dhabi, in which all projects emphasized the continuation of the implementation of development in the Emirate of Abu Dhabi within the package of economic incentives recently launched by the Executive Council of the Emirate of Abu Dhabi to support economic activity, reduce living costs and facilitate business in the emirate. His Excellency the Head of the Department clarified that the Local Content Program aims to direct this spending towards developing local products and services in all its components at the level of the local economy of the Emirate of Abu Dhabi, upgrading and following up on government procurement work, achieving development goals, and supporting the local economy in accordance with the visions, strategies, plans and economic systems of the Emirate of Abu Dhabi.

His Excellency the Head of the Department indicated that the companies that obtained the ICV certificate issued by the department in cooperation with the Abu Dhabi National Oil Company, ADNOC, “will have priority when awarding government bids in the event that they obtain a relatively high rate in the certificate, in addition to giving them the preference in price and quality provided. Compared to the rest of the companies participating in the tender, he explained that the department implemented the Abu Dhabi Local Content Program in a trial period that extended during the year 2019, when it achieved positive results, through which the companies that obtained the certificate benefited from about 890 million dirhams from the projects and tenders of the pilot phase of the program.

His Excellency Rashid Abdul Karim Al Balushi, Undersecretary of the Department, stated that during the first quarter of this year, the Department's Industrial Development Office carried out a number of awareness-raising workshops for about 60 governmental and semi-governmental entities in the Emirate of Abu Dhabi concerned with the implementation of the Abu Dhabi Local Content Program within its projects and tenders that are offered during the year. It has also educated more than 1,500 representatives of the supply companies, while continuing to organize awareness workshops on social media. Remote communication system as a precaution to the current situation. His Excellency stated that the Abu Dhabi Local Content Program encourages companies and factories that participate in government tenders to increase their economic contribution in Abu Dhabi to achieve 3 main axes, namely, localization, investment and strengthening the supply chain, indicating that the department has invited consulting firms registered with them in the Emirate of Abu Dhabi to register in the program with the aim of Approving them as entities working to certify the local value certificate through a measurement mechanism in accordance with the technical standards and requirements set by the department in accordance with governance procedures and opening new markets to increase competition. His Excellency Rashid Al Balushi explained that 5 new consulting firms have been signed to certify the approval of the ICV certificate, so that the total number of companies approved by the department is 11 consulting firms to date, so that they are assigned the responsibility of applying the equations and calculation methods and helping commercial, service and industrial establishments to submit their bids and provide all the necessary data and information. . His Excellency the Undersecretary of the Department added that the contract with 11 consulting firms to approve the authentication of ICV certificates has been completed, standards that encourage companies to support local value within the Emirate of Abu Dhabi and the UAE in general, as they are companies registered in the country that invest in the emirate and the state in general and contribute to the development of the service and professional sector on Both.

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