General UAE Legal Questions LawCabinet Resolution No. (72) of 2021 Regarding the National Content Program

Article (1) Definitions In application of the provisions herein, the following words and expressions shall have the meanings ascribed thereto, unless the context requires otherwise: Ministry : Ministry of Industry and Advanced Technology. Minister : Minister of Industry and Advanced Technology. Federal Entities : Any ministry established in accordance with Federal Law No. (1) of 1972 Concerning the functions of ministries and the powers of ministers, and its amendments, any federal independent agency, whether an authority or institution, in addition to federal regulatory bodies affiliated with the Government and have the authority to approve procurement operations. Concerned Entities : Any l…

Article (2) Objectives The program aims to achieve the following: 1. Localize the production of industrial goods and services and support demand for national products. 2. Recycle a larger portion of procurement and services expenditures in the national economy.

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Cabinet Resolution of 2021 Regarding the National Content Program 5 3. Activate the governmental procurement cycle to achieve governmental objectives and strategies. 4. Support the State's programs, projects, and objectives regarding increasing Emiratization rates and providing job opportunities for citizens in the private sector. 5. Encourage institutions and companies contracting in procurement to set plans and mecha…

Article (3) Scope of Application 1. The program shall apply to all procurement procedures and categories, supply contracts, and service execution conducted by federal entities to carry out their operations. 2. The program shall apply to the concerned entities and suppliers if they choose to join the program voluntarily, according to the standards and procedures set by the Ministry. Upon joining, the provisions outlined in the program shall apply to them in a mandatory manner.

Article (4) Criteria of the National Content The percentage of the national content value shall be calculated based on the following criteria: 1. First Criterion: The cost of manufacturing and spending on products and services within the State. 2. Second Criterion: The volume of investment in fixed assets within the State. 3. Third Criterion: Spending on hiring, qualifying, and developing national human capabilities. 4. Fourth Criterion: Investment in advanced technology, research and development. 5. Fifth Criterion: Spending on the job cadres existing in the State.

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Article (5) Tasks of the Ministry in the Program The Ministry undertakes the following tasks: 1. Supervising the program, monitoring its implementation, and establishing the necessary criteria for its application and participation. 2. Preparing the manuals, criteria, requirements, and procedures related to the program and its operating system, proposing amendments, and submitting them to the committee for review and presenting its recommendations to the Ministry. 3. Issuing the requirements for obtaining the National Content Certificate and its validity period in coordination with the concerned entities in the State, taking into account the national content criteria referred to in Article (4…

Article (6) of this Resolution. The National Content : The total amounts spent within the State to develop businesses, human resources, and boost productivity in the economy according to the criteria of the In-Country Value (ICV) formula. Program : The National Content Program approved by this Resolution. Certificate : The In-Country Value certificate measuring the supplier's contribution to the In-Country Value.

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Cabinet Resolution of 2021 Regarding the National Content Program 3 Companies Granting the Certificate : Companies and institutions authorized by the Ministry, according to its regulations and procedures, to issue In-Country Value certificates presented by suppliers,…

Article (6) National Committee A committee named "The National Committee for the National Content Program" shall be established, and shall be reporting to the Ministry. Formation, operating system, and decision-making mechanism of the committee shall be regulated by a resolution to be issued by the Minister.

Article (7) Tasks of the National Committee The National Committee referred to in Article (6) of this Resolution shall perform the following tasks: 1. Prepare policies and strategies relevant to the program and submit them to the Ministry. 2. Propose the mechanism for calculating the National Content percentage, along with the criteria, formula, and related guidelines, and submit them to the Ministry for approval. 3. Review the guidelines, criteria, requirements, and procedures relevant to the program and its operating system, as well as any amendments submitted by the Ministry, and provide recommendations for the same. 4. Determine the financial cost controls for issuing National Content ce…

Article (8) Responsibilities of Federal Entities Federal entities shall carry out the following: 1. Implement the program across all procedures and categories of procurement contracts. 2. Apply the specified mechanism for evaluating procurements and awarding bids as referred to in Clause (6) of Article (5) of this Resolution. 3. Provide the Ministry with any studies and reports regarding the implementation of the program's reports with respect to the program.

Article (9) Responsibilities of the Concerned Entities Concerned entities, upon joining the program, shall undertake the following: 1. Set appropriate procedures and policies to meet the requirements for application of the program. 2. Include the weight of the National Content in the evaluation criteria for tenders and contract awarding. 3. Provide proposals and improvements for the development of the program and submit them to the Ministry or the National Committee as appropriate. 4. Provide the Ministry with any studies and reports regarding the implementation of the program's reports with respect to the program.

Article (10) Companies Granting the Certificate Companies granting the certificate and wishing to be appointed under the program shall submit an application for approval in accordance with the criteria and conditions specified by the Ministry.

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Article (11) Obligations of the Companies Granting the Certificate Companies granting the certificate shall abide by the following: 1. Measure the National Content for suppliers based on the criteria approved by the Ministry. 2. Comply with the confidentiality, good conduct, ethics, integrity, and impartiality requirements specific to the program. 3. Notify the Ministry of any form of fraud, intentional misrepresentation, inappropriate conduct by suppliers, or any unfair practices or risks to the effective implementation of the program. 4. Contribute to the preparation of awareness workshops, training, and specialized programs regarding the program, in line with the performance and operation…

Article (12) Obligations of Suppliers Suppliers shall abide by the following: 1. Provide documentation to the companies granting the certificate that proves the contribution percentage to the National Content, along with copies of the audited financial statements prepared in accordance with international financial reporting standards, as per the forms and criteria set by the Ministry. 2. Renew the National Content certificate subject to the procedures approved by the Ministry. 3. Submit the National Content certificate along with the requirements and conditions for participation in the procurement of federal entities and concerned entities.

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Cabinet Resolution of 2021 Regardin…

Article (13) The National Content Mark 1. The Ministry shall determine the form of the National Content Program Mark, its conditions, and its usage controls, and it shall be considered the exclusive owner of the intellectual property rights related to it. 2. All federal entities, concerned entities, companies granting the certificate, and suppliers shall adhere to the shape of the aforementioned mark and the conditions and controls for its use. 3. None of the federal entities, concerned entities, companies granting the certificate, or suppliers may place, use, or promote the aforementioned mark, including abbreviations, symbols, or images that indicate any of the above, unless they are parti…

Article (14) Control and Monitoring Procedures 1. Without prejudice to the Ministry's duties outlined in this Resolution, federal entities and concerned entities shall be responsible for controlling and monitoring suppliers within their jurisdiction regarding the application of the program's provisions. 2. The Ministry shall monitor the companies granting the certificate in accordance with the criteria and procedures approved by the Ministry.

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Article (15) Administrative Penalties A regulation regarding administrative violations and penalties for breaching the provisions of the program, as well as the grievance procedures against the imposed penalties, shall be issued by a Cabinet Resolution.

Article (16) Final Provisions 1. The application of the program's provisions shall not violate other relevant legislations and shall not exempt from or affect any legal obligations stipulated in such legislations. 2. The Ministry of Finance shall apply the program's requirements in the federal procurement system. 3. The Minister shall issue the resolutions necessary to implement this program.

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