In-Country Value (ICV) is the percentage of a supplier’s spend retained in-country.
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Tawteen ICV program is developed to complement Qatar National Vision 2030 by driving the localization agenda in Qatar’s Energy sector through the following key enablers:
- Way of working, not just a formula
ICV will change the behavior of procurement process and suppliers’ spend. Suppliers need to adapt their procurement strategy as the commercial evaluation will be based on suppliers’ competitive price and ICV score.
- Contribute to sustainable economic growth for the Energy sector
- ICV will encourage local businesses to grow and broaden local sources to enhance the supply chain resilience and business continuity.
- ICV will reduce dependency on imports since resources will be available in country, which will result in logistic cost savings and shorter lead-time.
- Key strategic focus area
ICV in Qatar is driven by focusing on the following strategic objectives of localization:
- Maximize sustainable in-country value creation
- Upskill and develop local talent and suppliers
- Promote in-country private investment
- Mechanism to promote GDP diversification
ICV promotes GDP diversification through developing and supporting local suppliers and SME (small and medium enterprises) as well as incentivizing foreign suppliers to establish new opportunities in Qatar
- Enable the development of local suppliers
Suppliers will benefit from their contribution to develop and support their sub-suppliers. Any cost incurred by the suppliers towards the development of their sub-suppliers counts as 100% contribution to ICV.
- Support Qatar in becoming globally competitive
ICV incentivizes exports since the revenue from export is excluded from ICV formula, which leads to a higher ICV Score.
The ICV formula is based on the ICV strategic objectives.