How to drive the next phase of local content/in-country value development in the GCC

In-Country Value (ICV) programmes were initially created to increase workforce nationalisation, ensuring that investment was channelled into the development of a country’s own talent pool. Over time, they have evolved into total value programmes that encompass a wide range of factors to improve economic efficiency and diversity, while also being key engines to driving social development.

Today, comprehensive programmes encompass strategic initiatives such as developing local supplier capabilities, establishing strategic supply chain partnerships with international OEMs, attracting local and foreign investments, together with developing a future-proof workforce through training and internship programmes.
 

Saudi Arabia’s positive impact on ICV development

Over the past decade, Saudi Arabia has been instrumental in driving ICV development impact, powered by the need to diversify its economy and build new local capabilities and capacities to fuel the country’s post-oil economic future.

With a backdrop of accelerating technological development, a newly emerging industrial revolution, and rapid societal change, now is a pivotal time for other GCC countries to focus on the development and implementation of their ICV development programmes if they want to remain competitive and future proof their economies.

Efficio – the leading specialist ICV, procurement, and supply chain development consultancy – has developed and implemented best-in-class ICV development policies and programmes in the GCC region for more than a decade.

Our experience of developing Saudi Arabia’s ICV regulation and establishing and implementing ICV development programmes with public and private sector leaders across the Kingdom can function as a valuable blueprint other countries in the region. Below, we have summarised key milestones of our ICV development journey in Saudi Arabia and key success factors that have underpinned successful ICV development.

Efficio’s Local Content/ICV development journey in Saudi Arabia

Saudi Arabia has one of the most advanced ICV programmes and ecosystems in the region and can function as a good benchmark for other GCC countries in the development of their own ICV initiatives.

Efficio has led the development of the nation’s ICV programme and ecosystem over a series of key milestones.

In 2015 and 2016, we worked with Ministries and other public sector partners to lay the foundations for the country’s ICV programme. We established the national ICV definition, a standard ICV measurement approach, and developed foundational localisation initiatives across the country’s emerging ICV ecosystem.

During 2017 and 2020, we led the development of best-in-class ICV development programmes with the National Champions across several industries, such as Petrochemicals, Mining, and Telecommunications. These programmes were fundamental to translating the regulation into action, and Efficio had a critical role in establishing and executing local market
development initiatives, including supplier development and investor attraction programmes to drive ICV growth impact. Our execution was enabled by our world-leading ICV Operating Model, which included the design of ICV policies, initiative procedures, digital ICV reporting and performance management systems, as well as a holistic ICV training programme delivered by the Efficio Academy.

Recently, Efficio has been involved in expanding the design and delivery of ICV programmes to a wider set of leaders in areas such as aviation and investment funds, together with leading the development of a comprehensive ICV enablement ecosystem. These enablers include tax incentives, land allocation tools, price preferencing mechanisms and others – owned and led by public sector Ministries. Additionally, we are continuing our work with the national champions to future proof their ICV programmes, developing new opportunities, and accelerating ICV impact delivery by leveraging emerging trends – such as sustainable manufacturing, ESG, circular economy, digitalisation, and AI – that offer good opportunities to other GCC countries, as well to achieve their objectives of becoming leaders in new industries, green energy technologies, and other high-tech, high-investment emerging industries.

Seven key success factors for ICV development

Using our extensive regional and global ICV development experience, we have defined seven critical success factors for national ICV development programmes.