Creating Value In Country

ESG and Localization

Investors, regulatory agencies, and companies are focusing on  ESG in order to manage and measure sustainable long term business performance and investment potential.  Companies that can demonstrate Environmental Social Governance (ESG) performance are showing increased revenues, higher returns, and greater investment attraction.  Delivering on ESG is good for business.

The S in ESG is the social impact criteria and consists of practices that benefit the employees, consumers, suppliers, and the community.  In his article in ISMWorld.com, Shaun Doherty provides an excellent explanation on how localization programs are an effective and sustainable ESG strategy. Well designed localization programs encourage companies to invest in their employees, suppliers and communities in a way that is sustainable, good for the company’s business and deliver cost savings and a return on investment.

T&M Associates designs and helps clients implement highly successful localization programs that deliver on ESG performance.  Working together with our clients, our programs have delivered benefits to all stakeholders, from governments, to the sponsoring companies, to the local workforce and local companies (including small and medium enterprises).  These localization programs resulted in significant growth of local enterprises, as well as significant increases in meaningful local employment and workforce development.  And by delivering a positive return on investment for the sponsoring entity, the programs insured their sustainability and continued growth for many years.

For the article on ESG and Localization, please click on this link:  ISM Insights_ ESG and Localization

T&M Associates’ Onshoring Programs Build Sustainable Supply Chains

T&M Associates’ onshoring programs help our clients develop, grow, diversify, and optimize their supply chains.  Our programs are supported by proprietary systems and processes designed to meet the needs of our clients.   Digitization and data analytics are some of the tools used to provide information to make business decisions. By themselves, data analytics do not grow supply chain ecosystems.  Growing local supply chains requires hands-on experience in implementation and execution. The output of our program provides clients with a portfolio of opportunities and a list of activities targeting short-, mid- and long-term development and investment opportunities.

The success of our programs was seen during the pandemic. “We have seen a lot of plants and factories and suppliers that support Saudi Aramco from Europe, including China and other places – they had to shut down because of the lockdown. That impacted us for a while. But because of the optimum level of inventory that we have and because of our in-Kingdom total value add, which is our local content – we are at 56% so a lot of things are being manufactured in the Kingdom – it helped us a lot.” Quote by Saudi Aramco CEO Amin Nasser in Oil&Gas, June 2020.

Over the last decade, T&M Associates developed and executed the leading onshoring and in-country value addition programs, recognized by the IFC and World Petroleum Council Excellence Awards in Social Responsibility and especially our clients. Our programs have developed hundreds of supply chain ecosystems to support our clients’ industries, generated billions in new revenue for local companies, created 1000’s of new jobs, and 10’s of millions of USD in new investment.

ICV in Namibia: Creating the Vibrant Economy of the Future

The recently discovered oil and gas opportunities are a game changer for the Namibian economy. With at least 6 billion barrels of recoverable oil, Namibia is poised to become a major producer of oil and gas in the next few years and could become one of the largest producers in Africa at a million barrels per day.  The projected US $5.6 billion in annual revenue for the country is an opportunity to scale up and meet the demand for meaningful employment, manufacturing, and services.

T&M Associates’ ICV framework is a highly effective, proven, and successful alternative that creates the environment that drives local content.  Now is the perfect time for Namibia’s oil and gas industry to develop its local content strategy, framework, and policies in a way that drives future success.

For more information: TM Associates ICV for Namiba May 2023

Multi-Nation Business Group Event on In Country Value (ICV) Program

Dr. Thomas Deeb moderated the Annual Review of National In Country Value (ICV) Program hosted by AmCham Abu Dhabi together with multiple international Chambers and companies.  The Multi-Nation Business Group Event on Annual Review of National In Country Value (ICV) Program was held on On Tuesday, April 19, 2022.

Dr. Thomas Deeb, Vice President, T&M Associates was the Moderator.

Speakers will include:

  • His Excellency Abdulla Al Shamsi, Assistant Undersecretary for Industry Growth Sector, Ministry of Industry & Advanced Technology (MoIAT)
  • Saleh Al Hashmi, Director Commercial & ICV Directorate, Abu Dhabi National Oil Company (ADNOC)
  • Courtney Sader, General Counsel, Raytheon Emirates Ltd.
  • Suman Jacob, Procurement Lead, Accenture ME
  • Natalia Rudenko, Senior Manager,Protiviti
  • Kim Schofield, Board Member and Chair of Offset Committee, AmCham Abu Dhabi, Managing Partner, O2K Ltd

For more information on this event:  https://amchamabudhabi.glueup.com/event/53521/

 

Supply Chain Resilience: Beyond the Data

T&M Associates’ localization program helps our clients develop, grow, diversify, and optimize their supply chains, and our clients have seen the benefit of their resilient supply chain ecosystems during the pandemic. Supply chain disruptions, such as those caused by the pandemic, war, or the 2008 financial crisis, have exposed the vulnerabilities and critical pinch points of global supply chains.  During these events, companies experienced difficulties obtaining materials, especially from offshore suppliers, delivery times increased, quality decreased, and many suppliers went out of business.  Companies had to weather the impact of shut-downs, slow-downs, and labor shortages of their lean supply.  Additional disruptions were caused by logistics, from availability and cost of shipping containers to disruptions at receiving or shipping ports, … These events have encouraged companies and governments to promote supply chain redundancies and resiliency.  However, digitization and data analytics are just one part of the solution and increasing the buffer capacity by maintaining large inventories is a short-term solution.  The risk of maintaining large inventories is that once the logistics issues ease, there may be global overcapacity. The cost of maintaining large inventories or other supply chain redundancies may make the products too expensive in the long term. This raises the questions: how can industries or supply chains be made more resilient and/ or how can we grow sustainable supply chain ecosystems?

T&M Associates has developed a Value Addition/local content framework to help our clients develop, grow, diversify, and optimize their supply chains.  Our programs are supported by proprietary systems and processes designed to meet the needs of our clients.   Digitization and data analytics are just one part of this framework; they are tools used to provide information to make business decisions. By themselves, data analytics do not grow supply chain ecosystems.  The output of our program provides clients with a portfolio of opportunities and a list of activities targeting short-, mid- and long-term development and investment opportunities.

“We have seen a lot of plants and factories and suppliers that support Saudi Aramco from Europe, including China and other places – they had to shut down because of the lockdown. That impacted us for a while. But because of the optimum level of inventory that we have and because of our in-Kingdom total value add, which is our local content – we are at 56% so a lot of things are being manufactured in the Kingdom – it helped us a lot.” Quote by Saudi Aramco CEO Amin Nasser in Oil&Gas, June 2020.

Over the last decade, T&M Associates developed and executed the leading in-country value addition program, recognized by the IFC and World Petroleum Council Excellence Awards in Social Responsibility and especially our clients. Our programs are sustainable and continue long after our participation ends.  Our programs have developed hundreds of supply chain ecosystems to support our clients’ industries, generated billions in new revenue for local companies, created 1000’s of new jobs, and 10’s of millions of USD in new investment.

Leveraging Value Add Programs to Support Economic Recovery

Webinar Presented by AmCham Abu Dhabi

AmCham Abu Dhabi in collaboration with ADNOC, ALDAR and Etihad hosted a live webinar on Wednesday Nov. 18th, 2020  on ” Leveraging Value Add Programs to Support Economic Recovery”.

Moderator:   Dr. Tom Deeb, VP, T&M Associates.

Panelists:

  • Mona Ahmed Balalaa: Manager ICV Execution ADNOC
  • Sultan Almheiri: Local Content Manager Sourcing & Procurement Etihad Airways
  • Kim Schofield: Founder and Managing Partner O2K Limited
  • Leya Al Damani: VP Sustainability Department Procurement ALDAR

 

 

 

Publication: Implications of ADNOC’s In-Country Value Add

Constantine Frank-Fahle, Dr. Maria Beug-Deeb, and Elisabeth Deeb authored   “Implications of ADNOC’s “In-Country Value Add” program (ICV) for Doing Business with ADNOC”, which was published in The Procurement Lawyer (54:4) Fall 2019.

Localization & Local Content in the U.A.E

Joint Business Group Breakfast Seminar

On Wednesday Oct. 30, 2019, six Business Councils in Abu Dhabi along hosted a joint seminar on “Localization & Local Content in the UAE: Where are we? Where are we heading?” Invited speakers included Dr. Tom Deeb, T&M Associates

Localization programs have a long tradition in the UAE. While the defense industry has typically used  “offset” or Industrial Cooperation programs, ADNOC has launched an In-Country Value (ICV) program, which was followed by the Abu Dhabi Value (ADV) program soft-launched by the Department of Economic Development (DED) in Abu Dhabi. Offset and ICV/ADV programs are procurement-driven and require a reciprocal economic contribution to the UAE, of a designated percentage of the value of the contract awarded. Foreign defense companies are granted offset credits under the Tawazun program in exchange for meeting their localization commitments. Under the ICV/ADV programs, suppliers are granted a localization score based on their local “footprint”.

Agenda:

Welcome Address by Oliver Oehms, CEO, German Emirati Joint Council for Industry & Commerce (AHK)
Legal Insights on ADNOC’s In-Country Value Program (ICV); Department of Economic Development’s Abu Dhabi Value Program (ADV); and Tawazun Economic Council’s Economic Program by Dr. Constantin Frank-Fahle, LL.M., Senior Lawyer, SCHLÜTER GRAF Legal Consultant
Localization Programs in the UAE – Update on the Programs’ Status,  by Dr. Tom Deeb, T&M Associates
Finding and Implementing a Unified Localisation Strategy in the GCC by Michael Hackenbruch, Senior Manager Commercial, McDermott
The Tawazun Economic Program and Synergies with ICV/ADV by Kim Schofield, Managing Partner, O2K Limited
Panel Discussion: How can the defense and oil & gas industries collaborate to satisfy their localization/offset requirements? Synergies between the industries and opportunities to leverage.

Doug McEwan, Director of Marketing and Contracts – Middle East and Asia, Borr Drilling Management DMCC

Helmut Reichelt, Head of Diehl Defence Representative Office Abu Dhabi

Jens Winkelmann, Managing Director, Endress+Hauser UAE

Moderation: Oliver Oehms, CEO, German Emirati Joint Council for Industry and Commerce (AHK)

Participating Business Groups:

Amcham Abu Dhabi
BENELUX Business Council
British Business Group Abu Dhabi
Canadian Business Council Abu Dhabi
German Emirati Joint Council for Industry & Commerce (AHK)
Swiss Business Council

Oil & Gas in GCC: Opportunities Abound

Benelux Business Council Breakfast Seminar at ADIPEC

On November 12, 2019, Dr. Tom Deeb presented “Oil & Gas in GCC:  Opportunities Abound”, at the Abu Dhabi International Exhibition & Conference (ADIPEC).

Dr Deeb presented the opportunities, challenges, and ways companies can differentiate themselves in this market. Dr. Deeb’s presentation included:

  • the role of Value Add programs, such as Saudi Aramco’s iktva and ADNOC’s ICV,
  • how Value Add programs can be used as a tool to differentiate and gain a market advantage
  • how Value Add programs help European suppliers gain greater share or new markets in the GCC.

Elisabeth Deeb, T&M Associates, also attended the Benelux Business Council Breakfast Seminar at ADIPEC and was available to answer questions.

Localization Programs in the UAE

PESA Middle East District Meeting

On November 12, 2019, Dr. Tom Deeb presented “Localization Programs in the UAE”, at the PESA Middle East District Meeting. Dr. Deeb discussed the importance of economic development to the UAE and gave an update on the progress of the ADNOC ICV program.