ICV Certificate in UAE: Benefits & Procedure to Obtain

The ICV Certificate in UAE is a key component of the National In-Country Value (ICV) Program, designed to promote strategic localisation of the supply chain and boost local industries. Implemented under the Ministry of Industry and Advanced Technology (MoIAT), the program encourages foreign investments, supports manufacturing, and enhances local products and services to drive national GDP growth. The ICV certificate evaluates a company’s contribution to the local economy, making it a crucial factor in UAE’s sustainable development. Certified companies with a high ICV score gain competitive advantages in tenders and contracts, fostering economic diversification and creating job opportunities in the private sector. This article will give you a complete overview of ICV Certification UAE.

What is ICV Certificate in UAE?

The In-Country Value (ICV) Certificate in the UAE is an official document required for government tenders and ADNOC tender submissions. Initially introduced by Abu Dhabi National Oil Company (ADNOC), and since 2021, it has been under the supervision of the Ministry of Industry and Advanced Technology (MoIAT). The ICV Certificate assesses a company’s local economic impact based on local sourcing, investments, and employment. It aims to diversify the UAE economy by localising goods and services, increasing employment opportunities in the private sector, and localising key functions across industries. The program encourages businesses to collaborate with UAE suppliers and supports the nation’s sustainable development goals.

Objectives of ICV Certification UAE

The following are the main objectives of ICV Certification in UAE:

• Strengthening the local supply chain by promoting strategic localisation.
• Encouraging the growth of new industries and services to boost economic development.
• Attracting and stimulating foreign investments to enhance business opportunities.
• Diversifying the economy by reducing dependence on specific sectors.
• Generating employment opportunities in the private sector to support workforce expansion.
• Driving national GDP growth by increasing local economic participation.
• Boosting investment in research, development (R&D), and advanced technology to foster innovation.
• Enhancing the private sector’s role in the economy by increasing its contribution to GDP.

Also read: How to Start a Business in Dubai? - A Comprehensive Guide

Benefits of ICV Certificate in UAE

We have given below the several benefits of the ICV Certificate in UAE:

• Stronger Market Presence: Businesses with ICV certification can use it as a marketing tool to attract clients who prefer supporting local enterprises.
• Higher Chances of Winning Contracts: Certified companies have a competitive advantage in tender evaluations, increasing their chances of securing contracts.
• Alignment with National Economic Goals: Holding an ICV certificate demonstrates commitment to the UAE’s long-term economic vision, fostering business growth.
• Access to Financial Support: Some organisations offer financial incentives and assistance to ICV-certified businesses, making certification more beneficial.
• Empower SMEs: Helps small and mid-sized businesses grow by simplifying access to localised supply chains and development opportunities.
• Encourages Local Manufacturing: MOIAT supports local manufacturers bidding for government tenders, improving their ICV score and contributing to economic sustainability.

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Who can Obtain an ICV Certificate in UAE?

To qualify for ICV certification, businesses must meet specific eligibility criteria set by the UAE government. Below are the key requirements:

• Valid Business Registration: Companies must be registered with a government agency and hold a valid trade license.
• Operating in the UAE: The business must have a physical presence in the UAE and be engaged in offering products or services.
• Industry-Specific Requirements: Businesses must comply with sector-specific ICV criteria, including local content, workforce employment, and infrastructure usage.
• Adherence to ICV Program Guidelines: Each industry follows distinct ICV program standards, determining eligibility based on local production, service contribution, and economic impact.
• ICV Audit Assessment: Companies undergo an independent audit by an accredited ICV certification body, which evaluates performance and assigns a score based on compliance.
• Commitment to Local Economic Growth: The certification ensures businesses actively contribute to expanding and improving the UAE economy.

How to Get an ICV Certificate in UAE?

To secure an ICV certification in the UAE, businesses must follow a well-defined process to ensure compliance with local regulations and industry-specific standards. Here's a step-by-step guide:

Step 1: Choose a Certifying Body

The first step in the process is to contact the relevant certifying bodies and obtain quotations. Once the quotes are received, select a certifying body and proceed by signing an engagement letter with them.

Step 2: Evaluate and Adjust Operations (if needed)

To meet the ICV criteria, companies may need to adjust their operations. This could involve increasing local investments, hiring or training additional UAE nationals, and sourcing more goods or services from local suppliers to meet the program’s requirements.

Step 3: Release Audited Financial Statements

Submitting audited financial records is essential for obtaining the ICV certificate. Companies under 10 months old should provide management accounts that follow International Financial Reporting Standards (IFRS), a globally recognised framework ensuring transparency and reliability in financial reporting.

Step 4: Complete the ICV Template

The company must complete the ICV template, a standardised form that evaluates different aspects of the business. The template includes data on local sourcing, Emirati employment, investment in community infrastructure, and other factors contributing to the local economy. Follow the ICV program guidelines closely when filling out the form.

Step 5: Assessment of ICV Template

After submitting the completed ICV template, the business must submit it to the authorised certifying bodies for review. These independent bodies, approved by the ICV program, have the expertise and resources to assess the company’s compliance. They will also conduct an on-site audit to validate the information provided.

Step 6: Receive the ICV Certificate

Upon successful evaluation and audit, the certifying authority will issue the ICV certificate. This final step confirms that the business has met all the requirements of the ICV program and is eligible for certification.

Validity of ICV Certification UAE

The ICV certificate is valid for 14 months from the date of issuance of the audited financial statements. During this period, suppliers have the option to get recertified if they choose, using the same audited financial records. However, it’s important to note that the validity period of 14 months will remain from the initial issuance of the certificate, regardless of any recertification requests within this timeframe.

Renewal Procedure for ICV Certification UAE

To retain the ICV certification in the UAE, businesses must complete the renewal process before their certificate expires. The steps involved in renewing the ICV certificate include:

• Submission of Updated Documentation: Companies must submit updated financial statements, procurement records, and other essential documents to support recalculating their ICV score.
• ICV Score Recalculation: The certifying body will reassess the company’s ICV score using the newly provided documents to ensure accuracy.
• Audit and Verification: The certifying authority may conduct an audit to verify the accuracy of the submitted documents and confirm the correctness of the recalculated ICV score.
• Certificate Renewal: If the company meets the program’s requirements, the certifying body will renew the ICV certificate for another validity period.

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ICV Certification Guidelines for Suppliers

We have attached below the document regarding the ICV Certification Guidelines for Suppliers made by the MOIAT,

Conclusion

In conclusion, the ICV Certificate in the UAE plays a crucial role in driving the country's economic diversification and promoting the growth of local industries. By encouraging businesses to invest in local sourcing, employment, and infrastructure, the certification aligns companies with national economic goals and provides them significant competitive advantages in tenders and contracts. Through a clear and structured process, businesses can obtain and renew their ICV certificate, contributing to the overall success and sustainability of the UAE's economy.

FAQs

1. What is the ICV Certificate in UAE? 

The ICV Certificate in the UAE is an official document that evaluates a company's contribution to the local economy, focusing on local sourcing, investments, and employment. It is necessary for government tenders and ADNOC submissions.

2. What are the benefits of obtaining an ICV Certificate? 

The ICV certificate provides stronger market presence, higher chances of winning contracts, alignment with national economic goals, and access to financial support. It also encourages local manufacturing and empowers SMEs.

3. Who is eligible to obtain the ICV Certificate? 

Companies must be registered with the UAE government, operate in the UAE, and comply with specific industry standards, including local sourcing, employment of UAE nationals, and contribution to the local economy.

4. How do I obtain an ICV Certificate in UAE?

The process includes choosing a certifying body, evaluating operations to meet ICV criteria, submitting audited financial statements, completing the ICV template, and undergoing an assessment before receiving the certificate.

5. What is the validity period of the ICV Certificate?

The ICV certificate is valid for 14 months from the date of issuance of the audited financial statements, after which it must be renewed.

6. How can I renew my ICV Certificate in UAE? 

To renew the ICV certificate, businesses must submit updated financial records, undergo an ICV score recalculation, and potentially an audit. If the requirements are met, the certificate will be renewed.

7. What documents are required for the ICV certification process? 

Required documents include audited financial statements, the ICV template with information on local sourcing, employment, and infrastructure contributions, and any other relevant documents based on industry-specific requirements.

8. Is the ICV Certificate mandatory for all businesses in the UAE? 

The ICV Certificate is mandatory for businesses bidding on government contracts, especially in sectors like oil and gas, where ADNOC requires certification for tender submissions.

9. Can small and medium-sized enterprises (SMEs) apply for the ICV Certificate? 

Yes, SMEs can apply for the ICV certificate. The program helps these businesses by providing access to local supply chains and development opportunities, fostering growth within the local economy.

10. How does the ICV Certificate contribute to the UAE's economic goals?

The ICV Certificate supports the UAE's economic diversification by encouraging businesses to invest in local industries, create job opportunities, and contribute to the national GDP, aligning with the country's long-term sustainability objectives.