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ICV: A Pathway to Sustainable Business Success in the UAE

The long-term objective of the actions that ICV is carrying out within the United Arab Emirates is to encourage the expansion of local businesses and the enhancement of job opportunities, both of which contribute to the expansion of the economy as a whole. Therefore, trustworthy ICV Consultants in the UAE should be hired by businesses in order to facilitate the process of obtaining ICV certification.  

ICV Certification Roadmap for Dubai-Based Companies

Embark on your journey to ICV certification by following this comprehensive roadmap tailored for companies in Dubai:

Step 1: Understand ICV and Its Significance

The first crucial step is to grasp the fundamentals of ICV and its role in the UAE’s economic landscape. Familiarize yourself with the In-Country Value (ICV) concept, its objectives, and the specific requirements for businesses operating in Dubai.

Step 2: Determine Eligibility and Gather Documentation

Assess whether your company meets the eligibility criteria for ICV certification. Gather the necessary documentation, including audited financial statements, supplier information, and details on your company’s localization efforts.

Step 3: Select an Authorized Certifying Body (ACB)

Choose an accredited ACB that is authorized to conduct ICV assessments and issue certifications in Dubai. Research and compare different ACBs based on their expertise, experience, and fee structures.

Step 4: Engage the ACB for ICV Assessment

Initiate contact with the selected ACB and schedule an ICV assessment. The ACB will review your documentation, conduct interviews, and evaluate your company’s ICV performance based on the defined criteria.

Step 5: Receive ICV Score and Certification

Upon completion of the assessment, the ACB will provide you with your ICV score and, if eligible, issue the ICV certificate. Your ICV score reflects your company’s contribution to the UAE economy in terms of localization, supplier development, technology transfer, and human capital development.

Step 6: Implement ICV Strategies for Continuous Improvement

View ICV certification as an ongoing process, not a one-time achievement. Continuously evaluate your company’s ICV performance and identify areas for improvement. Implement strategies to enhance your ICV score and maintain compliance with the ICV program.

Step 7: Leverage ICV Certification for Business Advantage

Utilize your ICV certification to enhance your company’s reputation, attract new clients, and gain access to government tenders and projects. Showcase your commitment to sustainable business practices and contribution to the UAE’s economic development.

The Process of Certification 

The standards that are special to ICV can vary from sector to industry and from government authorities to government authorities, depending on the circumstances. The standard procedure starts with an in-depth analysis of a company’s performance capacity in a variety of domains that are directly related to the expansion of the United Arab Emirates’ economy.

Pathways for The Evaluation 

The key performance indicators (KPIs) are what lead to the determination of ICV assessments. The net influence that a company has on the economy of the local community can be effectively measured using these points.

  • Local Sourcing, defined as the percentage of products and services sourced from suppliers inside the specified boundaries of the UAE, is one such criterion that might be included in an ICV.
  •  Workforce in the UAE: The total number of Emirati nationals who have worked for a certain company.
  •  Training and Research: The amount of money spent on customized skill development programs for Emirati employees and the approximate worth of investments in employee-centred training programs.
  •  The total amount spent on local infrastructure, industrialization, research, and innovation in the UAE, as measured in venture capital investments in local facilities.
  •  The extent to which one is involved in business-related activities that benefit the community demonstrates civic duty awareness.
  •  Technology transfer: concrete initiatives aimed at improving local communities through various social work programs.

Registration Procedures

 After passing evaluation procedures, ICV-focused companies usually supply detailed records of their operations. To make sure it’s accurate and transparent, this data is usually checked by an outside party. Certification as an ICV will be bestowed upon businesses that achieve or surpass the defined ICV standards.

A Plan for Long-Term Affordability

Obtaining ICV accreditation can greatly enhance a company’s contracting capabilities and open up more entrepreneurial opportunities in the UAE. Certified businesses are increasingly being given contracts by UAE government institutions and organizations. Companies with higher ICV scores have a better chance of winning contracts and other bidding opportunities.

Adherence to Government Principles

In line with its long-term growth plan, the UAE government has set the following objectives for ICV:

  • Diversifying the economy
  • Fostering an informed and globally sensitive corporate climate 
  • Building a reliable local supply network to reduce dependence on international vendors
  • Building a reliable and sturdy company network

Government funding and collaborations are advantageous for companies that make active contributions to these aims.

Reducing Potential Dangers

Targeting risk is another aspect of the government’s plan. By bringing their supply chains and workforces in-country, UAE companies can lessen their reliance on foreign labor markets that are vulnerable to geopolitical instability, disruptions in supply chains, and fluctuations in supply and demand.

Long-Term Collaborations

Partnerships with government agencies and relevant stakeholders are secured by companies who continuously execute according to ICV objectives. They blossom into collaborative projects and chances for company expansion in the long run.

Get the help of leading ICV consultants in the UAE

In addition to strengthening a company’s competitive edge, ICV promotes resilience, innovation, and long-term partnerships by harmonizing with the UAE’s economic goals. These factors are vital for the country’s corporate development in the long run. Hence, companies should hire trustworthy ICV Consultants in Dubai to help them get ICV certification easily. Therefore, get in touch with us right away, and we will be happy to help.

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How to Get an ICV Certificate in Dubai?

A growing number of UAE-based companies across a variety of industries are aiming to get their hands on an ICV Certificate. Their dedication to In-Country Value (ICV), a government program in the United Arab Emirates aimed at increasing the country’s GDP through supporting domestic investment, procurement, and job creation, is demonstrated by this certificate.

Enumerate the components of an ICV certificate.

In the United Arab Emirates, the MoIAT (Ministry of Industry and Advanced Technology) issues certificates such as the ICV. As a measure of a company’s impact on the UAE economy, it verifies the ICV level the business has reached. Several criteria contribute to the ICV score, such as domestic value-added activities, employment of UAE nationals, local investment, and procurement from within the country.

Acquiring an ICV Certificate requires completing multiple steps:

Step 1

Signing up with the MoIAT: Registering with the UAE’s Ministry of Industry and Advanced Technology (MoIAT) is the initial step. In order to do this, one must register for an account on the MoIAT website and submit the required business data, such as financial statements, contact information, and paperwork for company registration.

Step 2

Self-Evaluation: Companies self-evaluate after registering to find out their ICV score. This entails assessing their economic contributions to the UAE using a range of standards, such as employment of UAE citizens, local investment, procurement, and value-added activities conducted there.

Step 3

Designating an Independent Examiner: To confirm the company’s assessment of itself and guarantee the veracity of the reported ICV score, an independent auditor is assigned. To support the self-assessment claims, the auditor looks over the company’s documentation, speaks with key personnel, and looks through pertinent documents.

Step 4

Issuance of Audit Report and ICV Certificate: After the audit is finished, the auditor sends the MoIAT an audit report. The organization receives an ICV Certificate from the MoIAT if the audit findings validate the self-assessment. After a successful reevaluation, the ICV Certificate can be renewed for an additional two years.

Benefits of Obtaining an ICV Certificate

ICV Consultant Dubai
  • Increased Chances of Winning Government Tenders: Many government projects and initiatives in Dubai prioritize companies with ICV certification. This essentially acts as a stamp of approval, demonstrating your commitment to supporting the local economy. When bids are evaluated, companies with an ICV certificate often receive a significant advantage.
  • Potential for Tax Breaks and Other Incentives: Government entities in Dubai may offer tax breaks, subsidies, or other financial incentives to companies with a strong ICV score. These incentives can translate to significant cost savings and improved profitability for your business.
  • Demonstrates Commitment to the Local Economy: Holding an ICV certificate showcases your company’s dedication to building a strong local presence. This can be particularly attractive to potential clients and partners who value companies that contribute positively to the UAE’s economic development.
  • Enhanced Credibility and Reputation: The ICV certification process involves a rigorous assessment. By achieving certification, you demonstrate your company’s adherence to best practices and commitment to ethical business conduct. This can significantly boost your overall credibility and reputation in the marketplace.
  • Improved Access to Local Resources: An ICV certificate can open doors to new opportunities within the local supply chain. You may find it easier to connect with qualified local suppliers and talent, fostering stronger business relationships within the UAE.
  • Long-Term Sustainability: The ICV program encourages businesses to invest in local resources and contribute to the development of the UAE’s workforce. This focus on long-term sustainability can benefit your company by creating a more stable and reliable operating environment.

Extra Things to Think About:

ICV Certificate Templates: Businesses are required to appropriately record their ICV-related activities and financial data on the ICV Certificate forms that the MoIAT has given.

Supporting Documentation: Businesses should keep thorough records of purchase orders, invoices, employment contracts, and other pertinent information to back up their self-assessment claims.

Time: the date of application, the ICV certification procedure normally takes between 30 and 45 days.

Fees: Upon submission of the application, the MoIAT will receive a charge that is related to the ICV certification process.

Getting an ICV Certificate in Dubai provides companies with a number of advantages, such as:

  • Enhanced Tender Submissions: Businesses that hold an ICV Certificate have an edge over competitors when submitting tenders for government projects and contracts.
  • Enhanced Credibility and Reputation: An ICV Certificate proves a company’s dedication to the UAE economy, which boosts its standing with the government, potential partners, and the business community at large.
  • Access to Exclusive perks: The UAE government may provide companies with an ICV Certificate with special perks and incentives.

In-Country Value and the development of a varied and sustainable economy in the United Arab Emirates are greatly aided by ICV Certificate Dubai. The ICV initiative links companies with the national development objectives of the United Arab Emirates by promoting local hiring, investment, and procurement.

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Unlocking the Power of ICV Certification in Dubai: A Gateway to Growth and Success

In the dynamic and ambitious city of Dubai, businesses constantly seek new ways to gain an edge and stand out in the competitive landscape. One increasingly significant factor gaining traction is the In-Country Value (ICV) Certificate. This valuable credential acts as a powerful differentiator, unlocking a treasure trove of benefits for businesses operating in Dubai, particularly within the oil and gas sector.

Enhanced Tender Success Rate

Companies holding an ICV Certificate benefit a aggressive edge in smooth submissions for authorities contracts and tasks. The ICV score acts as a critical aspect in evaluating bids, and businesses with higher ICV ratings are much more likely to secure moneymaking contracts.

Elevated Reputation and Credibility

An ICV Certificate serves as a testament to a employer’s commitment to In-Country Value (ICV) ideas. It demonstrates a company’s determination to supporting the UAE economic system through nearby procurement, investment, and employment. This more suitable popularity fosters trust and credibility amongst authorities entities, commercial enterprise partners, and the wider commercial enterprise network.

Access to Exclusive Benefits and Incentives

The UAE government gives numerous incentives and benefits to businesses retaining an ICV Certificate. These incentives may also consist of decreased expenses, tax breaks, preferential treatment in authorities procurement techniques, and access to distinctive investment possibilities.

Strengthened Market Position and Brand Image

ICV certification enhances a company’s logo reputation and marketplace positioning. It aligns the company with the UAE’s country wide development desires and demonstrates a dedication to sustainability and social obligation. This strengthens the organisation’s brand picture and draws a much wider purchaser base.

Improved Risk Management and Supply Chain Resilience

By prioritizing neighborhood procurement and value-added activities in the UAE, groups reduce their reliance on imports and improve their supply chain resilience. This reduces exposure to external risks and disruptions, making sure a extra stable and dependable supply chain.

Enhanced Talent Acquisition and Retention

ICV certification promotes employment of UAE nationals, fostering a extra numerous and skilled personnel. This dedication to Emiratization enhances expertise acquisition and retention, main to a more efficient and engaged workforce.

Contribution to Sustainable Economic Growth

By adhering to ICV ideas, companies contribute to the sustainable increase and diversification of the UAE economy. This promotes local economic improvement, creates employment possibilities, and fosters a greater resilient and self-sustaining financial system.

Conclusion

ICV certification offers a mess of advantages to businesses working in Dubai. It complements market possibilities, strengthens brand recognition, and contributes to sustainable monetary growth. Obtaining an ICV Certificate is a strategic choice that aligns with the UAE’s vision of fostering a different and prosperous economic system.

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Process of Obtaining ICV Certification in the UAE

Launched in February 2020, the In-Country Value (ICV) Program is an initiative of the Abu Dhabi Department of Economic Development (ADDED). The primary goals of the ICV program are to increase GDP, enhance human resource development, and strengthen UAE enterprises’ technological capacities. Ultimately, these programs aim to support local start-ups, accelerate economic growth, and make UAE enterprises more competitive on the global stage.

Requirements for Acquiring ICV Certification in the UAE

The UAE government has introduced the National In-Country Value (ICV) Certification program to support the local economy, create more job opportunities for Emiratis, and diversify the GDP sources. The program aims to encourage suppliers to increase their contribution to the UAE’s development and enhance their competitiveness in the market.

The ICV certification is a mandatory requirement for suppliers who want to participate in tenders from government and semi-government entities, such as the Abu Dhabi National Oil Company (ADNOC), the Ministry of Industry and Advanced Technology (MoIAT), and others. The ICV certification shows the supplier’s score, which reflects their level of localization and value addition in the UAE.

To obtain the ICV certification, suppliers need to follow certain steps and meet certain conditions, as explained below.

  • Only authorized and recognized organizations can issue ICV certifications.
  • All information provided in the ICV certificate template must be based on the company’s most recent audited financial statements.
  • To be certified with ICV in 2020, companies must provide audited financial statements that are current and compliant with IFRS, and no older than two years after the certification year. Specifically, the audited financial statements must be no more than 18 months old. For newly formed companies (those established less than a decade ago) without audited financial statements, the ICV can be determined using management records covering the first ten months.
  • If a management account covers a period of 10 months or more, it can be audited.
  • The validity period of the ICV certificate is fourteen months, commencing from the date of the release of the audited financial statements (AFS). During this “valid timeframe,” any company can choose to apply for recertification. However, the original validity will remain.

Process of Obtaining ICV Certification in the UAE

The In-Country Value (ICV) program in the UAE incentivizes companies to contribute to the local economy by sourcing goods, services, and employing Emiratis. Obtaining ICV certification demonstrates your commitment to this initiative and can open doors to lucrative government contracts and tenders. Here’s a step-by-step guide to navigating the process:

Review audited financial accounts: Review the audited financial accounts prepared by a UAE-approved auditor, using IFRS as a guide. As mentioned earlier, management records may be used for newly formed companies.

Register with the ICV certification body: Register with the relevant ICV certification body. Companies cannot switch certifying bodies after engaging one without obtaining the necessary paperwork and clearance from the appropriate authorities.

Complete and submit ICV Template: Fill out and submit the ICV Template to the certifying body. Follow MOIAT’s instructions when completing the form.

Verify financial statements and supporting documents: Ensure the company’s audited financial statements and any supporting documentation align with the figures provided in the ICV Template.

Include net expenditures in ICV Template: Include the company’s total revenue generated throughout the fiscal year as well as the net expenditures incurred in providing goods or services to all clients, including government entities, in the ICV Template.

Express numbers in AED: All figures in the ICV Template must be expressed in AED.

Reclassify stock differentials for consumption: When a company cannot provide consumption specifics (segmentation by vendor and invoice), purchases made throughout the year may be considered. In this case, it would be more appropriate to reclassify the opening and closing stock differentials as “others” to align them with the net consumption amount reported in the various accounting records.

Validate assumptions and calculation methods: Ensure that assumptions and calculation methods used in preparing the ICV Template are sound.

Grant access to data for certification bodies: Provide the necessary access to specific data for certification bodies that conduct business and issue certifications.

Face disciplinary action for negligence: Companies that submit work with extreme carelessness or intentional avoidance will face appropriate disciplinary action from the relevant departments.

Thorough Evaluation

Comprehensive assessment of company suitability: A thorough assessment of the company’s suitability is required. At this stage, the ICV template and all supporting documents are reviewed to ensure they meet the requirements of MOIAT standards.

ICV Committee approval: The application may be approved by the ICV committee if the evaluation checks are completed satisfactorily. The ICV committee reports to MOIAT, who reviews the certification process. MOIAT then approves the Certifying Body’s established procedures.

Vendor’s approval of ICV: The supplier reviews and approves the unsigned ICV Certificate sent to the Certifying Body.

Official ICV Certification Event

Certifying Body issues formal ICV Certificate: After the certifying body formally issues the ICV Certificate, the supplier must submit it to a participating enterprise.

Engaging ICV Experts in the UAE

The In-Country Value (ICV) program is strategic. ICV methods evaluate business operations, including procurement, employment, and supply chain management. Businesses are measured by local spending, employment generation, and supplier/manufacturer engagement. The program increases localization of goods and services, benefiting the UAE economy and advancing long-term aims for a healthy, diversified economy. To preserve records, monitor performance, and stay current in manufacturing and marketing, organizations should use top ICV Consultants in UAE.

Conditions to Obtain the ICV Certification

  • The supplier must have a valid trade license from the relevant local authority in the UAE and be registered with the applicable authority that requires the ICV certification.
  • The supplier must have a physical presence in the UAE and be engaged in a product or a service that contributes to the UAE’s economy and development.
  • The supplier must appoint an empanelled certifying body to issue the ICV certificate and pay the certification fees, which may vary depending on the size and complexity of the supplier’s business.
  • The supplier must ensure that the figures entered in the ICV certificate application form match with the audited financial statements and that the financial statements are prepared according to the IFRS.
  • The supplier must obtain a separate ICV certificate for each legal entity or trade license, even if they have the same owner or activities. However, if the supplier has multiple branches in the same emirate that conduct similar activities and have the same ownership, they can obtain a combined ICV certificate for that emirate.
  • The supplier must recertify their ICV certificate every year using the latest financial statements and guidelines. The supplier can also recertify their ICV certificate during the validity period using the same financial statements, but the validity period will remain the same as the first issuance.
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Why UAE Business Needs an ICV Certificate?

Maintaining an ICV Score and obtaining ICV certification are requirements for organisations operating in the UAE. After the UAE implemented various economic programmes that benefited small, medium, and large firms through tenders and bids, obtaining ICV certification became even more important. ICV accreditation serves as a motivator for businesses that are interested in bidding on contracts with organisations like ADNOC, Aldar, Emirates Steel, etc.

The approach is based on percentages rather than overall cost.

The calculation of the ICV score is based on percentage contribution rather than overall spending. When compared to tier 1 companies, the possibility for tier 2 and tier 3 companies is roughly comparable in this instance. The bidding process is open to all certified businesses.

Get up to 40% more leverage when placing your bids.

The ICV score column for companies without the certificate will be considered “zero” for the purposes of the bidding procedure. In contrast, a company that has earned ICV Certification will be given up to 40% more weight in the examination of the bids from the commercial perspective. It is a strategic objective to foster the economy’s future growth so that firms can thrive in an environment of fair competition and offer opportunities to both local UAE citizens and foreigners.

Participate in the MoIAT database.

become a part of the vendor and supplier database for various needs. Not all projects will be made available for bids. A database of ICV-certified vendors will be created by the Ministry of Industry and Advanced Technology in order to offer them preference on a number of internal purchases made by participating businesses.

Request a price quote from the certification organisations.

For the ICV certification, there are about 21 certifying organisations. Therefore, you can shortlist the agencies and request quotes if you’re seeking for a trustworthy and reasonably priced ICV Certifying company. Similar to this, you must finish and have your financial statements audited before applying for the ICV Certification. One of the most reputable and innovative providers of audit services in Dubai and the UAE is ICV Certificate. Get an audit completed in accordance with the ICV guidelines to raise your ICV score.

ICV Certification is a digital, online procedure.

The recently released digital platform enables customers to finish the certification and application processes. Businesses can check the status of their applications online and get ICV Certification in two weeks. Through its AI interface, the new platform assists consumers by using blockchain technology. The platform’s goal is to collect high-quality data from users, making it simpler for applicants to submit their applications and be granted the ICV Certification.

Participate in the booming economy of the UAE

The ICV certification’s five characteristics are as follows:
  • Bonus for Emirati Head Count, Investment Growth, and Outside the UAE Revenue Generated from Investment Emiratization Expat Hiring.
  • The ICV Certification enables businesses to save expenses and use regional suppliers for their procurement needs. It seeks to support regional businesses and participate in the expanding economy. Businesses can perform better on the ICV Certification by employing locally rather than relying on organizations from other countries to fulfil their procurement needs.
  • an increase in domestic demand for regional goods and services: Companies who want to improve their ICV score must increase their hiring, investment, and even procurement in the UAE. The ICV score may be higher the more locally focused the business is. These are additional elements that foreign businesses that want an ICV Certificate must take into account. Going local is in line with the plan to expand the economy and even quadruple it over the next few years.
  • In-Country Value Certificate includes a number of industries. Once ICV Certified, you could submit bids for businesses in a wide range of industries, including real estate, telecommunications, heavy machinery, and more. One advantage of obtaining ICV Certification is that the certificate can be used in a variety of sectors rather than just one.
  • By 2031, it hopes to add 120,000 new employments. The more businesses that localise in the UAE, the better it is for local employment. The UAE government is particularly interested in businesses taking advantage of the UAE and offering ample chances for talent within the UAE. By 2031, ICV Certification hopes to add 120,000 new employments. The ICV certification takes the hiring procedure for locals and foreigners in the UAE into account, and this directly influences the ICV Score.

UAE ICV Certificate

ICV Certificate UAE, a certified audit firm in the UAE, exhorts businesses to obtain ICV Certification right now! We will assist you in comprehending the ICV procedure and the factors influencing the ICV Score. Implicitly, the legal procedure, organisational reorganisation, examining the procurement process, and basically assessing the financials in accordance with the ICV norms can all improve the ICV Score. Therefore, get in touch with us right away, and we’ll be glad to help!