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Get Your ICV Certificate Abu Dhabi Today and Experience the Remarkable Power of Certification
In Abu Dhabi, the In-Country Value (ICV) certificate is an essential certification for businesses that are involved in government contracts, notably those that are affiliated with the Abu Dhabi National Oil Company (ADNOC). With this certificate, a firm may demonstrate that it has made a contribution to the economy of the local area by performing local procurement, Emiratization, and value addition.
What is the ICV?
The overall economic value that a firm generates inside the United Arab Emirates is referred to as its ICV. This covers considerations such as:
- The percentage of purchased products and services that are obtained from local vendors is referred to as “local procurement.”
- The percentage of Emirati nationals who are employed by the firm is referred to as “émiratization.”
- The amount of value that is added to goods and services via the incorporation of local production activities is referred to as local value addition.
- The amount to which the corporation shares its knowledge and skills with local businesses and institutions is referred to as the knowledge transfer.
Importance of ICV certificate in Abu Dhabi
ICV is a program that receives a lot of attention from the government of Abu Dhabi. Companies who have a higher ICV score have a variety of benefits, including the following:
- Companies who have a high ICV score are given preference in government procurement, which provides them with a major competitive advantage. This results in increased competitiveness in government bids and contracts.
- Obtaining access to government financing and support: Businesses that have a high ICV score may be eligible for grants, subsidies, and other types of financial help from the government.
- Enhanced brand image and reputation: An ICV certificate reflects a company’s dedication to Abu Dhabi’s economic development and social responsibility, which in turn enhances the company’s brand image and reputation.
- The ICV program aims to establish a stable and predictable business environment in Abu Dhabi by lowering the risk of government policies favoring enterprises with a higher local presence. This is due to the fact that the program helps to create a stable and predictable business environment.
How to obtain an ICV certificate in Abu Dhabi?
Companies can obtain an ICV certificate by completing the following steps:
Apply online through the ICV platform:
The Abu Dhabi Department of Economic Development (ADDED) provides an online portal for ICV applications. Companies can register, fill out the required forms, and submit supporting documents electronically.
- Visit the ICV platform website: The website address for the ICV platform may vary depending on the specific emirate you are applying in. For example, in Abu Dhabi, the website address is https://idb.added.gov.ae/.
- Register for an account: If you are a new user, you will need to register for an account on the ICV platform website. This will typically involve providing your personal information and contact details.
- Complete the online application form: Once you have logged in to your account, you will need to complete the online application form for an ICV certificate. The application form will typically require you to provide information about your company, such as its legal name, trade name, and contact details. You will also need to upload supporting documents, such as your company’s trade license and financial statements.
- Submit your application: Once you have completed the online application form and uploaded all of the required documents, you will need to submit your application. You will then receive a confirmation email from the ICV platform.
- Wait for the assessment: Once the ICV platform has received your application, it will be assessed by an accredited ICV certifying body. This process can take several weeks.
- Receive your ICV certificate: If your application is successful, you will receive your ICV certificate by email. The certificate will include your company’s ICV score, which is a measure of your company’s contribution to the local economy.
Conclusion:
If the company meets the required standards, it will be awarded an ICV certificate with a specific score. The score will be valid for a specific period, after which the company must apply for recertification.
The acquisition of an ICV certificate has the potential to greatly improve the business prospects and achievements available to you in Abu Dhabi. Get started on the path that will lead you to obtaining your ICV certificate right now. It is important to keep in mind that this is an investment in the future of your company as well as an essential step towards achieving long-term success in the profitable Abu Dhabi market.
How to Enhance ICV Score in UAE?
In-Country Value (ICV) plays a crucial role in driving economic diversification, creating jobs, and fostering a sustainable and prosperous future for the UAE. Here’s how:
Economic Diversification: ICV encourages companies to source goods and services locally, reducing reliance on imports and stimulating various sectors within the UAE economy. This diversification leads to a more robust and resilient economy, less vulnerable to external shocks.
Job Creation: By prioritizing local sourcing and hiring UAE nationals, ICV promotes job creation within the country. This reduces unemployment, increases household income, and contributes to overall economic growth.
Knowledge Transfer and Innovation: ICV encourages collaboration between international and local companies, facilitating knowledge transfer and fostering innovation. This leads to the development of skilled workforce, enhanced technology adoption, and improved productivity across various sectors.
Sustainable Growth: ICV promotes responsible business practices by encouraging companies to invest in the UAE economy and contribute to its social and environmental development. This leads to a more sustainable and equitable growth model for the future.
Increased Competitiveness: A high ICV score gives companies a significant advantage in government tenders and contracts, enhancing their competitiveness in the local market. This attracts foreign investment, further boosts economic activity, and creates more opportunities for businesses and individuals.
Benefits of Achieving a High ICV score
Achieving a high ICV score can offer numerous advantages for companies operating in the UAE. Here are some of the key benefits:
Increased Market Share and Competitive Advantage:
- Gain preferential treatment in government tenders and contracts: Companies with higher ICV scores are prioritized when awarding government contracts, providing a significant competitive edge.
- Attract new customers and partners: A high ICV score demonstrates your commitment to the UAE and its economy, enhancing your brand reputation and attracting potential customers and partners.
- Enhanced market access and visibility: Participating in government initiatives and programs can open doors to new markets and provide valuable networking opportunities.
Financial Benefits and Stability:
- Access to financing and government support: Companies with high ICV scores can benefit from preferential access to financing from government-backed institutions and private lenders.
- Reduced costs and improved operational efficiency: Local sourcing and investing in the UAE can lead to cost savings, streamlined operations, and improved overall efficiency.
- Long-term business sustainability: A strong commitment to the UAE’s economic development fosters long-term stability and ensures the company’s sustainable growth in the local market.
Enhanced Brand Reputation and Relationships:
- Build trust and credibility: Demonstrating your commitment to the UAE aligns your company with the government’s vision and values, building trust and credibility with stakeholders.
- Strengthen relationships with local partners and customers: Active participation in the local economy and community fosters stronger relationships with partners and customers, leading to mutual benefits and long-term collaboration.
- Position your company as a responsible leader: By prioritizing sustainability, ethical practices, and contributing to local development, your company becomes a leader in the industry, attracting talent and investors.
Key Factors Influencing ICV Score in UAE:
Local Sourcing
This is the single most significant factor influencing your ICV score. The percentage of goods and services you source from local suppliers directly contributes to your score.
Strategies:
- Identify and build relationships with reliable local suppliers.
- Participate in government programs promoting local procurement.
- Consider setting up local manufacturing or production facilities.
Hiring and Training UAE Nationals
The UAE government prioritizes Emiratization, so employing and training UAE nationals significantly boosts your ICV score.
Strategies:
- Develop a comprehensive Emiratization strategy with clear targets and timelines.
- Partner with educational institutions and training centers.
- Offer competitive salaries and attractive benefits packages for UAE nationals.
Investing in the UAE Economy
Contributing to the country’s development through various investments can significantly impact your ICV score.
Strategies:
- Invest in infrastructure and development projects within the UAE.
- Participate in research and development initiatives.
- Support local startups and businesses.
Compliance and Reporting
Maintaining compliance with ICV regulations and accurately completing the ICV template are crucial for achieving a high score.
Strategies:
- Seek professional advice from ICV consultants.
- Establish clear internal processes for ICV compliance and reporting.
- Regularly monitor your ICV score and identify areas for improvement.
Additional Strategies for Enhancing ICV Score:
- Technology transfer and innovation: Collaborating with local companies and promoting technological advancements can positively impact your ICV score.
- Sustainability and ethical practices: Implementing sustainable and ethical business practices demonstrates your commitment to the UAE’s long-term development goals.
- Performance and success: Companies with a strong track record of performance and positive contributions to the UAE economy tend to have higher ICV scores.
Challenges in Improving ICV Score in UAE
Improving the ICV score in the UAE can be challenging due to several factors. These challenges include:
- Compliance with legal framework: The ICV certification procedure calls for adherence to the UAE’s criminal framework, including federal legal guidelines, guidelines, and hints. Ensuring compliance with corporation registration, licensing, and taxation can be complicated and time-ingesting.
- Eligibility criteria: Suppliers must meet unique eligibility criteria, which include being a prison entity registered in the UAE, having a legitimate trade license, and audited economic statements no longer older than years. Meeting those standards can be hard for a few companies.
- Accurate financial reporting: The ICV certification process is predicated on accurate economic statements reflecting the dealer’s operations and prepared in accordance with IFRS. Ensuring accuracy and compliance can be tough for corporations without robust financial reporting systems.
- ICV method compliance: The ICV formulation calculates the provider’s ICV score based on different factors. Ensuring compliance with the ICV formulation and imparting accurate statistics inside the ICV certificates template may be tough for businesses with out a clear understanding of the method.
- Local sourcing: The maximum good sized element influencing the ICV score is nearby sourcing. Identifying and building relationships with dependable neighborhood providers, participating in authorities programs selling nearby procurement, and considering putting in neighborhood production or production centers can be challenging with out a strong local network.
- Investing in the UAE financial system: Contributing to the u . S .’s improvement via various investments can extensively effect the ICV rating. Investing in infrastructure and development projects inside the UAE, taking part in studies and improvement projects, and supporting local startups and businesses can be challenging without a clean understanding of the UAE’s economic improvement priorities.
- Technology switch and innovation: Collaborating with local companies and promoting technological advancements can be challenging without a strong studies and improvement functionality or partnerships with local technology organizations.
- Sustainability and ethical practices: Implementing sustainable and ethical commercial enterprise practices can be tough with out a clear knowledge of the UAE’s sustainability and moral priorities or without a sturdy dedication to those practices.
To conquer those demanding situations, companies can interact ICV certificates specialists within the UAE specializing inside the ICV certification manner. These specialists are familiar with prison requirements, monetary reporting, the ICV formula, and possibilities to maximise the ICV rating. Choosing a good and skilled expert can help navigate felony challenges and make certain compliance with ICV certification necessities in the UAE.
How Can a Company Measure Its ICV Score in the UAE
To measure the ICV score in the UAE, a company’s spending on goods and services originating in the UAE, as well as its investment in the country’s workforce and local manufacturing capabilities, are evaluated. The ICV score is calculated as a percentage of the total spend that a company has made in the UAE, based on the following formula: ICV Score = (Total Spend in UAE / Total Revenue) x 100.
For manufacturers within the UAE, the ICV score is calculated using the formula:
ICV Score = (Manufacturing costs incurred within the UAE + Emirati cost + 60% of Expat Cost) / (Total Cost).
For suppliers within the UAE, the ICV score is calculated using the formula:
ICV Score = (Value of Purchase x ICV of the supplier + Emirati Costs + 60% of Expat cost) / (Total Cost).
For investments within the UAE, the ICV value increases with the increase in the net book value asset. The ICV Score is calculated as Net book value of assets within the UAE / Net book value.
To enhance the ICV score, businesses can follow strategies such as local sourcing, hiring and training UAE nationals, investing in the UAE economy, compliance and reporting, technology transfer and innovation, sustainability and ethical practices, and performance and success. An ICV consultant can help businesses develop a personalized strategy to enhance their ICV score, addressing specific needs and maximizing potential.
Conclusion: Enhance Your ICV Score and Drive Success in the UAE Market
In today’s dynamic and competitive UAE market, achieving a high In-Country Value (ICV) score is no longer just an option; it’s a necessity for businesses seeking long-term growth and success. By understanding the key factors influencing your ICV score and implementing effective strategies, you can unlock a wealth of benefits, including:
- Increased market share and competitive advantage
- Enhanced brand reputation and stronger relationships
- Improved financial stability and long-term sustainability
- Access to exclusive government contracts and opportunities
- Contribution to the UAE’s economic development and prosperity
Remember, enhancing your ICV score is a continuous journey, not a destination. By embracing a commitment to local sourcing, Emiratization, responsible investments, and ethical practices, you can demonstrate your dedication to the UAE’s vision and position your company as a leading player in the market.
Take the first step today. Explore the resources provided, consult with ICV experts, and develop a comprehensive plan to elevate your ICV score and unlock the full potential of your business in the thriving UAE market. Our ICV experts can tailor a personalized strategy for your company, addressing your specific needs and maximizing your ICV score potential.
FAQs and Answers for Enhance ICV Score in UAE
Q: What is the ICV Score in UAE?
A: The ICV (In-Country Value) Score is a degree of a enterprise’s contribution to the UAE economy, calculated based totally on various factors along with local sourcing, hiring and education UAE nationals, investment inside the UAE financial system, compliance and reporting, generation transfer and innovation, sustainability and ethical practices, and overall performance and fulfillment.
Q: Is there a minimum ICV score required for a organization to operate in the UAE?
A: No, there is no minimal ICV score required for a organisation to perform inside the UAE. However, a higher ICV score can offer preferential remedy in government procurement strategies and a aggressive gain inside the marketplace.
Q: How can a organization enhance its ICV rating in UAE?
A: Companies can beautify their ICV rating by using following various strategies including local sourcing, hiring and schooling UAE nationals, making an investment within the UAE economic system, compliance and reporting, generation switch and innovation, sustainability and ethical practices, and overall performance and success.
Q: How is the ICV score calculated in UAE?
A: The ICV score is calculated based totally on the organisation’s audited financial statements and is expressed as a percentage. The rating is calculated using diverse formulas based totally at the enterprise’s spending on goods and services that originate within the UAE, funding within the country’s group of workers and neighborhood manufacturing abilities, and the organisation’s sales generated outdoor of the UAE.
Q: What is the impact of the ICV program being adopted at the countrywide degree in UAE?
A: The ICV program being followed on the national level has a huge effect on big companies, public and personal companies throughout distinctive Emirates. As greater taking part entities adopt the ICV program, the necessities for having an ICV certificates boom to preserve competitiveness at the same time as presenting to those large agencies.
Resources:
- Ministry of Industry and Advanced Technology (MOIAT): https://www.devex.com/organizations/ministry-of-industry-and-advanced-technology-moiat-united-arab-emirates-212023
- List of ICV Certifying Bodies: https://www.adnoc.ae/en/incountry-value/certifying-bodies
2024 Guide to ICV Certification for Suppliers
Gain a competitive edge in the UAE market with ICV certification. Discover guidelines, benefits, and steps to become a certified supplier and unlock lucrative business opportunities.
What an In-Country Value (ICV) certificate is and Why your company needs it for business
What an In-Country Value (ICV) certificate?
The Abu Dhabi National Oil Company (Adnoc) launched an In-Country Value (ICV) program in 2018 with a procurement focus to promote GDP diversification, emiratization, and strategic considerations.
Later, earlier this year, the Abu Dhabi Department of Economic Development (ADDED) partnered with Adnoc to introduce the idea of a unified ICV certification process for suppliers in the United Arab Emirates, in keeping with the financial objectives of the government accelerator program, Ghadan 21 and in response to the program’s success.
Aldar Properties, Abu Dhabi Ports, Adnoc, and ADDED are now known to as Participating Entities after they all entered the unified ICV certification procedure last year. In order to collaborate on the program, Adnoc has also inked agreements with Emirates Nuclear Energy Corporation (ENEC) and Mubadala Investment Company. Soon, more entities should sign up for the ICV certification platform.
The goal of the unified ICV program is to combine the ICV certification procedure into a single ICV certificate that may be utilized by any supplier, primary or secondary, that plans to participate in the procurement process of the Participating Entities.
Why your company needs it for business?
Improving private sector participation, facilitating GDP diversification, and localizing essential supply chain components are the primary goals of the ICV Certificate. To put it simply, “In-Country Value is the amount that a supplier spends that stays in the UAE or contributes to the UAE, as stated by Peeyush Joardar, Partner, ICV & Audit at MBG Corporate Services, one of the authorized certifying bodies in the UAE.”
By December 2019, more than 1,500 Emiratis were employed in the private sector thanks to the Adnoc ICV program, which has reinvested more than Dh44 billion ($12 billion) in the UAE economy. In the UAE, there are over 3,000 businesses with ICV certification.
Among the areas taken into account for ICV certification are manufactured goods, investment, Emiratization, expatriate contribution, revenue from sources outside the United Arab Emirates, and increase in investment. As a result, the ICV program has developed a new business line that must be supplied from the United Arab Emirates.
Additionally beneficial to businesses, the ICV certificate gives them the option to use their first right of refusal throughout the tendering process. Companies without the ICV certificate will still be able to compete on Adnoc Group projects, but they will not have the advantage over those with a higher ICV score because their ICV score will be 0 in the bid review process.
We have a team of experts with a track record of issuing ICV certificates across multiple industries, and we can help you obtain your unified ICV certificate within a short turnaround time,” he claims. It is our responsibility to first help clients comprehend the ICV program and identify the variables that influence the ICV score. We then offer ideas for actions to raise the score, such as streamlining organizational procedures, combining legal entities, organizing investments, optimizing the supply chain, and reducing the number of employees.
The company’s audited financial statements prepared in accordance with International Financial Reporting Standards serve as the sole foundation for ICV certification (IFRS). It is recommended that financial statements be no more than two years from the year of certification. Furthermore, even though ownership of a group of licenses is shared, each license inside the group is regarded as a separate legal entity for businesses with several entities.
However, one combined ICV certificate is allowed for the company in that emirate if it has multiple branches in the same emirate with identical activities and ownership listed on the licences,” he clarifies.
Here are the steps on how to obtain an ICV certification:
Issue audited financial statements
The first step is to issue audited financial statements on your company. These statements have to be prepared in accordance with International Financial Reporting Standards (IFRS) and have to no longer be older than two years from the certifying 12 months. The statements must additionally be signed through an authorized auditor from the UAE Ministry of Economy.
Complete the ICV certificate utility form
Once you have got your audited financial statements, you can whole the ICV certificates software shape. The form may be downloaded from the website of the Ministry of Industry and Advanced Technology (MoIAT).
Submit the application form and supporting files
Once you have got finished the software shape, you should submit it to the MoIAT along with the following assisting files:
- A copy of your company’s change license
- A reproduction of your organization’s registration certificates
- A reproduction of your enterprise’s articles of affiliation
- A copy of your enterprise’s memorandum of know-how
- A replica of your organization’s organizational chart
- A reproduction of your organisation’s worker list
- A replica of your business enterprise’s education and improvement packages
- A reproduction of your organization’s network engagement initiatives
- A replica of your organization’s environmental sustainability regulations
Pay the utility fee. The software fee for an ICV certificate is AED 1,000. The price may be paid online or via a financial institution transfer.
Attend the ICV certification evaluation. Once your application has been reviewed, you may be invited to wait an ICV certification assessment. The evaluation may be conducted through a group of MoIAT assessors, who will evaluation your agency’s compliance with the ICV criteria.
Receive your ICV certificate. If your employer is a success within the ICV certification evaluation, you’ll be issued an ICV certificate. The certificates may be legitimate for two years.
How we help you get ICV Certificate for Business?
The ICV certificate, once obtained, is good for 14 months from the date the audited financial accounts are released. If the supplier so desires, he may recertify using the same audited financial statements at any point during the certificate’s validity; however, the initial 14-month validity period will not be extended.
To assist and set up ICV certification, KGRN Services has established specialized internal teams in Abu Dhabi, Dubai, and Sharjah. KGRN Services was founded in 2008 and offers tactics and solutions that promote corporate change. The company operates in India, Australia, UK, UAE and the Middle East, with its headquarters located in Dubai and over 150 employees at its UAE office. It is located in six countries and has sixteen global offices.
The Significance of ICV Certification for Businesses
In the United Arab Emirates (UAE), the In-Country Value (ICV) application is a tremendous authorities initiative that aims to enhance the nearby economic system by fostering the growth of local corporations and growing the employment of Emiratis inside the private sector. The ICV software mandates that authorities and semi-government entities prioritise buying items and services from corporations that have been certified as ICV compliant.
ICV certification is critical for organisations working inside the UAE, specifically those seeking to participate in authorities tenders and contracts. The ICV certification manner assesses a enterprise’s contribution to the UAE financial system based on different factors, which include:
- Investment inside the UAE: This includes investments in nearby infrastructure, studies and development, and training Emirati nationals.
- Emiratization: This refers to the proportion of Emirati nationals employed by the corporation.
- Local procurement: This measures the share of products and offerings procured from neighbourhood suppliers.
- Revenue generated within the UAE: This considers the agency’s sales generated from UAE-based operations.
- Bonuses for Emirati headcount, funding increase, and sales generated from outside the UAE: These factors provide additional incentives for corporations to decorate their ICV rankings.
Obtaining ICV certification offers several benefits to agencies, which includes:
- Enhanced chances of prevailing authorities contracts: ICV licensed businesses receive preferential treatment in government gentle opinions, increasing their likelihood of securing contracts.
- Improved brand popularity: ICV certification demonstrates an enterprise’s dedication to assisting the UAE’s financial boom and social improvement, enhancing its reputation among clients and partners.
- Tax benefits and incentives: ICV licensed corporations can be eligible for tax advantages and incentives presented by using the UAE government.
- Access to new commercial enterprise opportunities: ICV certification can open doorways to new commercial enterprise possibilities and partnerships with government entities and local corporations.
ICV certification has turned out to be a crucial requirement for organisations looking to thrive inside the UAE’s dynamic and aggressive market. By demonstrating their dedication to the country’s monetary development and social development, ICV certified organisations can function themselves for long-term fulfilment in the UAE.
The eligibility requirements for ICV Certification within the United Arab Emirates (UAE) are as follows:
Legal Entity Registration: The agency should undergo the process of formally registering and undertaking commercial enterprise in the United Arab Emirates.
The agency is needed to supply audited monetary debts for the preceding years, adhering to the International Financial Reporting Standards (IFRS).
To take part inside the Nafis Partner Program, a federal effort that promotes the employment of Emirati individuals within the personal region, the enterprise need to be officially registered.
The enterprise is required to show off a dedication to neighbourhood procurement by means of acquiring a sizable percentage of its goods and services from providers domiciled within the UAE.
Emiratization: The company is required to have a considerable share of Emirati citizens as personnel.
Investments in the UAE: The enterprise is needed to exhibit a dedication to making an investment within the UAE’s monetary progress by investments in local infrastructure, research and development, or the education of Emirati humans.
Revenue Generated inside the UAE: A sizable percentage of the corporation’s sales need to originate from its operations located in the United Arab Emirates.
Adherence to UAE Laws & Regulations: The organisation is needed to conform with all applicable UAE legal guidelines, regulations, and labour requirements.
Branch Eligibility: An awesome ICV certification is important for each branch within an enterprise. Companies who have many branches in the UAE, all owned by the equal entity, have the choice to get a unified ICV certificate that covers all branches.
Considerations for Obtaining ICV Certification
Early Planning: Initiate the ICV certification process well in advance to allow sufficient time for preparation and application.
Data Accuracy: Ensure the accuracy and completeness of all submitted information and supporting documents.
Compliance Documentation: Maintain comprehensive records of local procurement, Emiratization, investments, and revenue generated in the UAE.
Professional Assistance: Consider seeking guidance from consultants or legal advisors with expertise in ICV certification.
Continuous Improvement: Continuously evaluate and improve your company’s performance to enhance your ICV score and maintain certification.
Look into the best ICV Consultants in the UAE.
It is recommended that companies seek the professional assistance of the most reputable ICV Consultants in UAE in order to receive an ICV certificate in a seamless manner that is in accordance with the statutory requirement. Get in touch with us right away, and we would be happy to be of assistance to you.