The Middle East is synonymous with ambitious mega projects, from sustainable cities and renewable energy complexes to expansive infrastructure developments. These projects, backed by regional strategies such as UAE Vision 2050, and Saudi Arabia’s Vision 2030 and Nusaned initiatives, aim to transform economies and societies. Central to their success is robust supply chain resilience.
The Role of ESG Compliance in Supply Chain Resilience
Environmental, Social, and Governance (ESG) compliance has moved beyond regulatory requirements, becoming integral to supply chain resilience. Ensuring ESG compliance involves rigorous ESG reporting, which provides transparency and accountability, essential for investors and stakeholders.
Organizations aiming at achieving UAE Vision 2050 through sustainable procurement must adopt best practices, embedding ESG compliance into their operational frameworks. Effective ESG reporting identifies risks and opportunities, improving supplier relationships and ensuring long-term sustainability. According to Deloitte’s 2023 report, 79% of companies in the Middle East consider ESG critical to their operational resilience.
Sustainable Procurement and UAE Vision 2050
Sustainable procurement is no longer optional but it is foundational to achieving UAE Vision 2050. This vision prioritizes sustainable development, positioning procurement at its strategic core. Companies engaged in mega projects must integrate sustainable procurement practices, emphasizing local sourcing, environmental stewardship, and social responsibility.
One crucial element is the In-Country Value (ICV) certification process in UAE supply chains. This approach promotes the development of local capabilities, economic diversification, and job creation. Organizations that adopt ICV practices not only comply with local regulations but also gain competitive advantages in project tendering processes.
Enhancing Supplier Compliance and Local Content through ICV
ICV represents a strategic framework that ensures a substantial part of project expenditures remain within the UAE economy. By embracing the ICV certification process in UAE supply chains, companies enhance supplier compliance and ensure project alignment with national economic goals. According to the Abu Dhabi Department of Economic Development (ADDED), projects integrating ICV requirements have reported significant economic impact and local job creation.
