U.S Crude Oil Price Plunge: Is it Advantage UAE?

Published On - April 25, 2020

admin ADNOC Registration, ICV Consultation, PRE-Qualification
US Crude Oil Price Plunges; Advantage UAE

Why the dip is temporary and how the UAE is unaffected

4 Ways to take Advantage in UAE

Should we crash the plate? Not yet, say analysts.

Oil & Gas sector worldwide, took a beating as crude oil prices plunged to a 34-year low earlier this week, in the wake of the coronavirus pandemic. Facing one of the biggest selloffs in crude oil history, analysts worldwide are predicting a comeback. The demand for crude oil is expected to be up again once the peak (read worst) of the pandemic is seen off (any time in the next 2-3 months), and matters, inevitably, return to normalcy.

The negative demand does not affect the GCC, and definitely does not get paid for filling up petrol in car.

Here are 4 ways you can take advantage of the temporary dip:

  1. Invest in Oil & Energy Stocks:

The UAE supports both individual and private sector investment in Oil & Gas through:

    • Centrally regulated stock exchanges, financial centers and exchanges such as Abu Dhabi Global Market (ADGM), Abu Dhabi Securities Exchange (A.D.X), Dubai Multi Commodities Centre (DMCC), Dubai Gold & Commodities Exchange (DGCX) etc.
    • Privately managed and centrally registered investment planners, wealth management firms, stock brokers and traders.
  1. Get ICV Certified / Re-Certified:
    • A good In-Country Value (ICV) Score, in line with industry standards, is crucial to bagging reputed government tenders and projects.
    • The ICV has a validity of 14 months from audit. Post expiry, an ICV Improvement Plan has to be charted and Re-certification procedure to be followed.
    • Taking into consideration the time required for auditing and processing the ICV (45-60 days), this interim period is ideal for getting your firm ICV Certified.
  1. Partnership with Reputed Suppliers / Contractors / Sub-Contractors:
    • If your firm is a direct supplier to ADNOC, this is a good time to forge partnerships with long-established vendors and contractors of ADNOC.
    • Reputed vendors have an In-Country Value (ICV) Score that would be above-par the industry standards.
    • The nuances involved in the calculation of ICV guarantee a mutually benefiting reflection of score on supplier-contractor partnerships.
  1. Register with ADNOC as a Supplier / Vendor:
    • If your firm is yet to register as a direct supplier, there is no better time than now to begin the process.
    • Only registered suppliers enjoy eligibility to submit bids directly, as they are invited by ADNOC to submit proposal/quotations for floated tenders.
    • The registration process follows a sequence of operating procedures involving policy implementations, documentation, application, submissions, approvals and qualifications.
    • This process is spread over eight major milestones and two key phases and could be a tedious and time-consuming process for first-time users. In seasoned hands, the registration could be accomplished in as little as a few weeks’ time.