ICV Programs for Economic Sustainability:
Scotland, with its rich history in the energy sector, particularly oil and gas, finds itself at a crossroads. The global market is changing, and nations that rely on these sectors are facing the challenge of ensuring their long-term prosperity. Many countries are adopting In-Country Value (ICV) programs to ensure that the wealth generated from natural resources stays within their borders, fostering local businesses, creating jobs, and driving innovation. For Scotland, the adoption of ICV could be transformative, providing a robust economic framework that not only protects its resources but also revitalizes local businesses across all sectors.

What is In-Country Value (ICV)?
At its core, ICV is about maximizing the economic benefits of national industries by retaining and recirculating value within the country. This is particularly crucial in sectors like oil, gas, and energy, where large multinational corporations often dominate. ICV mandates that a certain percentage of spending, jobs, and opportunities should directly benefit local suppliers, service providers, and the workforce. The long-term objective is to build a self-sustaining economy that relies on local content, driving development and innovation domestically.

For Scotland, an oil-producing nation, adopting an ICV strategy could pave the way for a sustainable, diversified economy, less reliant on external forces. By encouraging local businesses to participate more actively in the supply chains of national industries, the benefits multiply—creating jobs, fostering innovation, and strengthening local industries that, in turn, contribute back to the economy.

The Growing LIST OF COUNTRIES  ADOPTING ICV Programs

The Global Success of ICV Programs:
Many oil-rich nations have successfully implemented ICV programs or similar local content initiatives, using them as tools for economic growth and diversification. Below are countries and their leading companies that have embraced ICV principles and seen significant economic benefits:

United Arab Emirates (UAE):
The ADNOC (Abu Dhabi National Oil Company) ICV program, launched in 2018, has become a cornerstone of the UAE's strategy to maximize local economic impact. By prioritizing local suppliers and workforce development, ADNOC has not only bolstered the domestic economy but also increased the competitiveness of UAE-based companies in the global market.

Oman:
Oman has long been a pioneer in local content with its In-Country Value (ICV) Strategy, particularly focused on the oil and gas industry. Since 2013, Oman has fostered a stronger local industrial base, improving its workforce capabilities and reducing reliance on foreign imports. By doing so, the country has built a more resilient and diversified economy.

Saudi Arabia:
Through Saudi Aramco's IKTVA (In-Kingdom Total Value Add) program, Saudi Arabia is building a globally competitive local supply chain. IKTVA's success lies in incentivizing international companies to invest in local capacity and skill development, ensuring that a larger share of economic activity is retained within the Kingdom.

Qatar:
QatarEnergy (formerly Qatar Petroleum) launched its Tawteen initiative to drive local content in the energy sector. With the program, local suppliers, manufacturers, and service providers have a greater opportunity to participate in major projects, strengthening Qatar’s industrial base and fostering long-term economic stability.

Nigeria:
Nigeria's Nigerian Oil and Gas Industry Content Development Act (NOGICDA), implemented in 2010, has been a game-changer for the local economy. It ensures that a significant portion of the revenue generated by international oil companies is reinvested into local businesses, driving job creation, skills transfer, and the growth of local industries.

Brazil:
In Brazil, stringent local content requirements have been imposed on multinational companies operating in the oil and gas industry. These regulations ensure that local suppliers and workers participate in significant projects, which in turn strengthens Brazil’s domestic industries.

Angola:
Angola's Local Content Law ensures that local companies, goods, and services play a central role in the oil and gas sector. The law has provided a clear path for wealth generated by the industry to benefit the Angolan people through increased local employment and development.

Kazakhstan:
Kazakhstan’s local content initiatives have been instrumental in boosting the participation of domestic businesses in key sectors like oil, gas, and infrastructure. The success of these initiatives has allowed the country to retain more value from its natural resources while developing local expertise.

Why Oil-Producing Countries are Adopting ICV Programs:
Diversification of Economies: Oil-rich countries are acutely aware of the finite nature of fossil fuels and the volatility of global oil prices. By adopting ICV programs, these nations aim to diversify their economies away from oil dependence. Localizing supply chains and fostering domestic industries ensures a more stable economic foundation, irrespective of global oil market fluctuations.

Job Creation and Human Capital Development: Oil-producing nations often face challenges related to unemployment, especially among young and educated populations. ICV programs help mitigate this by mandating local employment, thereby developing human capital and reducing dependency on foreign labour.

Sustainable Long-Term Growth: In the face of global energy transitions, oil-producing nations are looking to future-proof their economies. Investments in R&D and the growth of non-oil sectors through ICV programs help ensure these countries remain competitive in a post-oil world. Encouraging local innovation and entrepreneurship is critical to this long-term sustainability.

Maximizing Local Economic Impact: Oil production often benefits multinational corporations more than local economies. By implementing ICV regulations, these countries ensure that more of the revenue generated from resource extraction remains within their borders, supporting local businesses, infrastructure, and community development.

WHY NOT SCOTLAND

If multinational companies like Schlumberger, ExxonMobil, and Siemens are prepared to adhere to In-Country Value (ICV) programs in countries such as the UAE, Oman, and Brazil—boosting local employment, procurement, and industry development—why not in Scotland? With its rich natural resources and thriving energy sector, Scotland stands to benefit immensely from ICV adoption, ensuring that a larger portion of the wealth generated remains within the local economy. By implementing ICV principles, Scotland could secure more local jobs, support small businesses, and stimulate domestic industries. Organizations like Getslocal can play a key role in this transformation by promoting local procurement and collaboration through programs like GETS Trade and GETS Rewards, aligning with Scotland's economic goals and fostering sustainable growth. The time to bring ICV home to Scotland is now.

Why Scotland Should Act Now:
The global push for economic sustainability and reduced reliance on international players is growing. As countries like the UAE, Oman, and Saudi Arabia have demonstrated, ICV programs not only protect local interests but also enable countries to develop a robust domestic economy with thriving local industries. Scotland, with its history in oil and gas, should follow suit.

Adopting ICV programs in Scotland could:
Boost local industry participation: Encouraging Scottish businesses, particularly those with specialist skills in offshore oil and gas, to take a more prominent role in national projects.

• Create local jobs: By prioritizing local labour, Scotland can reduce unemployment, offer more opportunities for its youth, and retain talent within the country.
• Drive innovation and technological development: Scottish companies could receive more funding and opportunities to develop cutting-edge technologies that could then be exported to other markets.
• Strengthen the supply chain: Scottish companies can become integral parts of national supply chains, increasing their global competitiveness and making Scotland more economically resilient.

Getslocal’s Role in Supporting ICV Programs:
At Getslocal, we understand the critical importance of fostering local economies, and our innovative programs are designed to align seamlessly with the goals of In-Country Value (ICV). We believe that local businesses are the backbone of a healthy economy, and through GETS Trade and GETS Rewards, we can offer Scottish businesses the tools they need to thrive in an ICV-driven economy. 

GETS TRADE CLUB :

A Platform for Local Economic Empowerment:
The GETS Trade Club program is a B2B Capacity Trade Exchange designed to create a thriving marketplace where businesses can trade goods and services on a local scale. The program embodies the ICV philosophy by:

Encouraging Local Procurement:
GETS Trade promotes local sourcing by enabling Scottish companies to engage in trade with domestic suppliers. This reduces reliance on imports and foreign suppliers, keeping more economic activity within Scotland. Local procurement not only strengthens the supply chain but also increases demand for Scottish-made products and services, contributing to a diversified and resilient economy.

Cash-flow Flexibility and Interest-Free Credit:
One of the key features of GETS Trade is the provision of interest-free credit lines, which helps businesses, especially SMEs, manage cash flow without the burden of traditional financing. This financial flexibility is crucial for small businesses to participate in larger contracts and projects, fostering growth and local employment. For ICV-focused industries, this means that even smaller companies can bid for and complete local contracts, contributing to overall economic value creation.

Local Job Creation:
By keeping trade within the local economy, GETS Trade Marketplace facilitates job creation across various sectors. The increase in demand for locally sourced products and services generates new employment opportunities. In line with the ICV philosophy, this reduces dependence on international labor markets and helps Scottish businesses build a stronger, more sustainable workforce.

Enhancing Competitiveness:
GETS Trade enables small to large Scottish companies to compete effectively in the local market by providing them with the tools to access B2B opportunities. By offering interest-free credit and local trading networks, the program ensures that even smaller players can participate in large-scale projects and contracts, thus fostering competitiveness and innovation. This not only levels the playing field but also aligns with the ICV goals of creating long-term economic value through local business development. 

GETS Trade ICV Key Benefits:

Here are the key benefits for ICV-certified companies joining Getslocal as Partners or Premium Members in the GETS Trade Marketplace, emphasizing their role in stimulating the local economy and ensuring sustainable growth:

• 0% Interest-Free Credit Lines: ICV-certified companies gain access to short-term, interest-free credit lines through Trade Credits , offering liquidity without traditional financial costs.

• Trade Credits as Currency: The digital currency, Trade Credits AKA Trade Pounds, is an Enterprise-backed Trade Credit Obligation (TCO), functioning within a Peer-to-Peer Mutual Credit Clearing System, ensuring secure, value-backed transactions in the marketplace.

• Closed-Loop System: Similar to the Swiss Wir Bank, the closed-loop system ensures that Trade Credits stay within the Getslocal ecosystem, enhancing the circulation of trade value and boosting local commerce.

• ICV-Certified Companies as Issuers: ICV-certified companies become issuers and backers of the Trade Credits, driving local economic activity by spending these credits with smaller local companies, who in turn, reinvest them in the local business community.

• Market Makers in the Local Economy: By becoming Partners or Premium Members, these ICV-certified companies act as market makers, increasing the velocity of money within the local ecosystem, which leads to faster circulation of value and greater liquidity, spurring local economic growth.

• Local Business Support: Trade Credits spent by larger companies with local businesses are reinvested within the community, creating a multiplier effect and fostering partnerships between businesses of all sizes.

• B2B Loyalty Program: The GETS Trade Marketplace essentially functions as a B2B Loyalty Program, incentivising repeat business by providing additional liquidity in the marketplace. Transactions are typically a blend of Cash and Trade Credits, helping to protect cash flow while encouraging sustained engagement between businesses.

• Strengthened Local Economy: By retaining value within the local ecosystem, businesses benefit from increased resilience and opportunities for growth, while creating a sustainable economic structure that thrives on mutual trade and collaboration.

This model ensures that GETS Trade not only boosts short-term cash flow but also promotes long-term business partnerships, fostering a self-sustaining trade environment that benefits the local economy.

GETS CLUB REWARDS:

A Catalyst for Consumer and Business Engagement:
The GETS Club Rewards program, a hybrid loyalty initiative, plays a vital role in supporting the ICV philosophy by boosting consumer engagement and strengthening relationships between businesses and their local communities.

Promoting Local Consumer Spending:
GETS Club Rewards incentivises consumers to spend locally by offering two loyalty mechanisms: Standalone Solo Points and Coalition Premium Points. By rewarding customers for shopping with local businesses, the program encourages the recirculation of money within the local economy, which is a key tenet of ICV. The increased footfall in local stores not only benefits small businesses but also fosters community ties and ensures that local businesses remain competitive against large corporations.

Supporting Business Networks:
The coalition side of the GETS Club Rewards program allows businesses to share rewards, offering customers more flexible spending options across different local businesses. This networked approach mirrors the ICV philosophy by strengthening business ecosystems and promoting collaboration between local enterprises. In this way, even small businesses can participate in larger customer loyalty schemes, giving them an edge in attracting and retaining local customers.

Enabling Seamless Integration with Minimal Costs:
A key advantage of GETS Club Rewards is its ease of adoption. Businesses do not need to upgrade their existing Point of Sales (POS) systems, and the program requires minimal training for employees. This low-barrier entry ensures that even small businesses with limited resources can take part in the program, allowing for widespread adoption across the Scottish economy. By making it easy for local businesses to reward and engage with customers, GETS Club Rewards supports the ICV objective of maximizing local content and value.

Long-Term Engagement and Customer Retention:
The program’s focus on long-term customer engagement through exclusive deals, seasonal promotions, and event-based rewards ensures that local businesses can build lasting relationships with their customers. This aligns with ICV’s goal of fostering sustained local economic activity by encouraging repeat business and brand loyalty within the community. Additionally, the GETS Rewards mobile app makes it easier for customers to discover and support local businesses, further promoting local spending and investment.

Business Insights and Growth:
By participating in GETS Club Rewards, businesses gain valuable insights into customer behavior and preferences, allowing them to tailor their offerings and marketing strategies to better serve their local clientele. This data-driven approach not only helps businesses grow but also ensures that local products and services evolve in line with consumer demand, contributing to a more dynamic and responsive local economy.

Small to Large Scottish Companies:

Facilitating the ICV Philosophy for Small to Large Scottish Companies:
Both GETS Trade Club and GETS Club Rewards play a crucial role in facilitating the ICV philosophy for small to large Scottish companies by fostering a localized business environment, improving cash flow, enhancing customer loyalty, and driving long-term competitiveness.

For Small Businesses: 
Small businesses are often at the heart of local economies but can struggle with cash flow and customer retention. GETS Club Trade’s interest-free credit and GETS Club Rewards’ loyalty mechanisms provide essential support to these businesses, enabling them to thrive in a competitive market. By keeping more business activity within Scotland, these programs help small enterprises grow, create jobs, and contribute more to the local economy.

For Medium-Sized Enterprises:
Medium-sized companies benefit from increased access to local supply chains and the ability to compete for larger contracts through GETS Trade. Meanwhile, GETS Rewards allows them to participate in coalition loyalty schemes, ensuring they maintain strong relationships with both customers and local business partners. This collaboration drives economic growth while adhering to ICV principles, such as maximizing local content and employment.

For Large Enterprises:
Large companies, especially those involved in major infrastructure or energy projects, can use GETS Trade to localize their supply chains and ensure that more of their spending benefits Scottish businesses. GETS Rewards can be used to enhance corporate social responsibility (CSR) initiatives by fostering community engagement and supporting local economies. This not only enhances brand image but also aligns with government mandates focused on ICV compliance.

Tax Benefits of ICV Programs: 

How Countries and Companies Profit from Local Investment

The tax benefits associated with In-Country Value (ICV) programs are highly attractive to both companies and the countries implementing them, particularly in sectors like energy and oil and gas. 

Here’s an overview of the advantages for both:

For ICV-Certified Companies:

1. Tax Deductions on Local Spend: Many countries offer tax incentives for companies that invest in local goods, services, and employment. By prioritizing local procurement and hiring, businesses can qualify for tax deductions or credits, reducing their overall tax burden.

2. Reduced Tax Liability for Workforce Localization: In several countries with ICV programs, hiring and training local employees can reduce a company’s tax liability. Governments often provide incentives, such as tax holidays or reduced tax rates, for companies that focus on developing a local workforce and reducing reliance on expatriate labour.

3. Incentives for Infrastructure Investments: Companies that invest in local infrastructure, whether through construction, technology, or other assets, may benefit from accelerated depreciation or tax credits. These incentives allow businesses to offset taxes against the capital investments that enhance local capacity.

4. Increased Compliance with Corporate Social Responsibility (CSR): Many jurisdictions view ICV as part of a company’s CSR mandate. By complying with ICV requirements, companies can potentially gain favourable tax treatment as they align with local government development objectives.

For Countries Implementing ICV:

1. Increased Tax Revenue from Local Economic Growth: By enforcing ICV programs, countries can stimulate local economic activity. More local businesses mean higher taxable revenues from goods, services, and employment, which boosts the overall tax base.

2. Reduced Capital Flight: ICV programs help ensure that more capital remains in the country, reducing the outflow of profits to foreign entities. This allows the government to capture tax revenue that would otherwise leave the economy, further boosting public finances.

3. Employment-Related Tax Benefits: As ICV programs drive local employment, governments collect more in personal income taxes from an expanded workforce. The creation of high-quality jobs for locals also reduces unemployment-related expenses, such as social welfare and unemployment benefits.

4. Long-Term Economic Diversification: By promoting local industry and capacity-building through tax incentives, ICV programs reduce the country’s reliance on a single sector (e.g., oil) and enhance broader economic stability, contributing to sustainable long-term tax revenues.

In summary, ICV programs create a win-win for both governments and companies: businesses receive tax incentives for investing locally, and countries benefit from increased economic activity, job creation, and long-term diversification of their tax base.

HOW KPMG and PwC are key players

How KPMG and PwC are Advancing In-Country Value (ICV) Programs Globally:
Several major accountancy firms actively support In-Country Value (ICV) programs by providing certification and advisory services. 

KPMG and PwC are key players in this space, particularly in regions like the UAE and Qatar, where ICV programs are a crucial part of the oil and gas sectors.

KPMG is an accredited certifier for Qatar's Tawteen ICV initiative, which aims to enhance the local economy by encouraging the growth of in-country suppliers and helping them align with national development goals like Qatar National Vision 2030. KPMG provides services such as ICV certification and helps businesses develop strategies to improve their ICV score, ensuring they meet procurement and localization requirements

PwC is another firm involved in ICV programs, especially within ADNOC's supply chain in the UAE. PwC certifies suppliers' ICV scores and offers advisory services to help businesses enhance their ICV performance. This involves calculating ICV scores based on factors like local procurement, talent development, and investment in local industries

These accountancy firms are instrumental in supporting businesses to meet ICV requirements, which is becoming increasingly important for companies looking to secure contracts in oil-producing nations and other regions where ICV is part of government procurement processes.

companies that are ICV certified

The following is a small sample list of well-known companies that are ICV certified, particularly in regions like the UAE and Oman, where In-Country Value (ICV) programs are highly prioritized:

OIL & GAS SECTOR:

Schlumberger – A global oilfield services company, certified under ADNOC's ICV program, focuses on local workforce development and procurement in the UAE.

Baker Hughes – A leader in oilfield services, contributing to ADNOC’s ICV program by increasing local content through employment and supply chain activities.

TechnipFMC – A prominent multinational in oilfield services and equipment, ICV certified for supporting local economies by sourcing locally and investing in domestic capabilities.

Halliburton – As one of the largest oilfield service companies, Halliburton participates in ADNOC’s ICV program by focusing on local workforce enhancement and industrial participation.

McDermott International – Engaged in engineering, procurement, and construction for the energy industry, McDermott actively supports ICV objectives in the UAE.

Petrofac – A major international oilfield services company that is certified under both UAE’s ADNOC ICV program and Oman’s ICV program.

NPCC (National Petroleum Construction Company) – UAE-based, certified under ADNOC’s ICV initiative for its extensive contribution to local industry development.

Saipem – An engineering and construction company in the oil and gas sector, which has adopted ICV principles in its regional operations.

TotalEnergies – The French oil and gas giant is actively involved in ICV initiatives in both Oman and the UAE, contributing to local employment, technology transfer, and industrial growth.

ExxonMobil – Certified under multiple ICV frameworks, ExxonMobil supports local content policies in various regions, particularly in oil-rich countries.

Royal Dutch Shell – As a major oil and gas player, Shell participates in ICV programs across the Middle East and Africa, focusing on local sourcing and workforce development.

Eni – The Italian multinational energy company engages in ICV initiatives in regions such as Africa and the Middle East, aligning with local content laws.

Chevron – Chevron is another international oil and gas company certified under ICV programs in the UAE and other regions, focusing on increasing local contributions to its supply chain.

Occidental Petroleum – An American oil company that participates in ICV initiatives in the Middle East, particularly in Oman, where it promotes local employment and procurement.

CONSTRUCTION & ENGINEERING:

Al Jaber Group – A leading UAE-based construction and engineering company, certified for its local hiring, procurement, and use of local services.

Larsen & Toubro (L&T) – A global engineering, procurement, and construction company certified under the ICV framework, contributing to the UAE’s local value initiatives.

Galfar Engineering & Contracting – One of Oman’s largest construction companies, actively involved in promoting local hiring and procurement as part of Oman’s ICV framework.

Bechtel – A global construction and engineering company that supports ICV programs in the Middle East by prioritizing local hiring and training of the workforce.

Fluor Corporation – A multinational engineering and construction company certified under the ICV framework, focusing on local content development in the oil and gas sector.

Consolidated Contractors Company (CCC) – A major construction company in the UAE and Oman, involved in ICV-certified projects, particularly in oil and gas infrastructure development.

Arabtec Holding – Based in the UAE, Arabtec has aligned with ICV programs by hiring local labor and partnering with domestic companies for materials and services.

ENERGY & UTILITIES:

Siemens – Certified under the UAE’s ICV program, Siemens has been a key player in supporting the growth of local industrial capabilities and talent development.

General Electric (GE) – Involved in energy infrastructure, GE has been certified under various ICV programs, focusing on building local content in the UAE and Oman.

Masdar – A UAE-based renewable energy company that is ICV certified, contributing significantly to local industrial and talent development.

ENGIE – A French multinational utility company, ICV certified in Oman and the UAE, supports local industry development and technology transfer.

Taqa (Abu Dhabi National Energy Company) – An energy company in the UAE certified for its commitment to the development of local industries and employment through its ICV program.

ADNOC (Abu Dhabi National Oil Company) – A significant leader in promoting ICV in the UAE, ADNOC has established a broad ICV framework that mandates its suppliers and partners to enhance local economic participation.

Oman Oil Company – Oman’s state oil company, a key proponent of the country’s ICV policies, ensuring that projects maximize local value creation.

Marafiq – A utility company in Saudi Arabia, Marafiq is certified under Saudi Arabia’s IKTVA (In-Kingdom Total Value Add) program, which is similar to ICV.

Technology & Industrial Manufacturing:

Honeywell – An American multinational, certified under the ICV program, known for supporting local procurement and workforce development in the UAE.

ABB – A global technology company with ICV certification in the UAE, contributing to the development of local engineering talent and procurement of local goods and services.

Emerson – Another ICV certified company in automation and manufacturing, actively contributing to local value through local partnerships and employment in the UAE.

Thales Group – A global aerospace, defense, and security company involved in ICV in the UAE, contributing to local capability development through local partnerships and training.

Samsung Engineering – Certified under the ICV program in the UAE, Samsung Engineering focuses on local subcontracting and talent development for its regional projects.

Honeywell – Known for its technological innovation, Honeywell’s ICV certification reflects its commitment to local partnerships, hiring, and training programs in the Middle East.

Lockheed Martin – A leading aerospace and defense contractor, Lockheed Martin aligns with ICV initiatives in the UAE by supporting local industries and developing domestic capabilities.

Telecommunications:

Etisalat – A UAE-based telecommunications company, certified for its contribution to local economic development through procurement and workforce development initiatives.

Ooredoo – Qatar’s largest telecom company, certified in Oman’s ICV program for its local hiring and local business engagement practices.

Huawei – The Chinese telecommunications giant participates in ICV initiatives in the UAE and other Middle Eastern countries, contributing to the development of local tech ecosystems and employment.

Nokia – Engages in ICV programs by establishing local offices, hiring local professionals, and collaborating with local partners in the UAE and Oman.

Vodafone – Certified under Oman’s ICV program, Vodafone prioritizes hiring locals and contracting with domestic suppliers.

Ericsson – A major telecommunications equipment provider, certified under ICV frameworks in the Middle East, supporting local ICT talent and supply chains.

 Additional Industries:

DHL – As part of Oman’s ICV initiatives, DHL is involved in logistics and supply chain management, focusing on employing locals and contracting local suppliers.

FedEx – Certified under various ICV programs, FedEx emphasizes building local logistics capabilities and increasing local procurement.

Caterpillar – The heavy equipment manufacturer supports ICV efforts in the Middle East, particularly by sourcing locally and developing local talent for operations and maintenance.

Companies Under Oman’s ICV Framework:

BP Oman – Actively involved in ICV initiatives, particularly through local supplier development and increasing the number of Omani employees in its operations.

Vale – The Brazilian mining giant in Oman, aligning with ICV goals by hiring locals and procuring goods and services from Omani businesses.

Daleel Petroleum – A key player in Oman’s oil sector, involved in ICV by fostering local content and workforce development.

GlassPoint Solar – Solar technology company in Oman, focusing on local hiring and technology transfer under the ICV framework.

These companies play a crucial role in the economic diversification of their host countries by aligning with In-Country Value policies aimed at enhancing local employment, skills development, and industrial capabilities.