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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

FAQ - Frequently Asked Questions

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:

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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.

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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.

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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.

Two people exchange an ICV (In-Country Value) certificate across a wooden desk. A laptop is open on the desk, displaying a website detailing the process of obtaining ICV certification in the UAE. An open binder and a calculator are also on the desk.

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!

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Frequently Asked Questions (FAQs) About ICV Certification in Dubai

What does the National ICV Program entail?

The Ministry of Industry and Advanced Technology’s (MoIAT) mission to increase the productivity and sustainability of the UAE’s industrial sector is supported by the National In-Country Value Program (ICV), a programme that the UAE government launched. The Program considers local manufacturing spending, regional goods and services, investments, the employment and training of Emiratis, and the creation of job prospects. The programme encourages manufacturing in the UAE and reroutes purchases of goods and services to the domestic economy.

Which companies make up the National ICV Program’s strategic alliances?

The Abu Dhabi Department of Economic Development (ADDED), represented by the Department of Government Support, which serves as an umbrella for 62 local entities, the Abu Dhabi National Oil Company (ADNOC), and Aldar Properties are among the program’s implementers. The program’s strategic partners also include a number of other government agencies and top national businesses in a variety of industries. It’s anticipated that a number of new partners will soon join the programme.

What do the Program’s goals entail?

The Program’s primary goals are as follows:
  1. supply chains’ strategic localization and the emergence of fresh regional businesses and services;
  2. encouraging and luring foreign investment, enhancing economic diversification, and raising exports;
  3. increasing the number of worthwhile jobs available in the private sector;
  4. assisting in the expansion of the national GDP;
  5. Increase the amount spent on R&D and cutting-edge technologies; raise the private sector’s share of the national GDP.

Under the National ICV Program, is the Unified ICV certificate still valid?

Yes, businesses that have already received the Unified ICV certificate may use it for the National ICV Program.

Who grants ICV Certificates?

For the verification and issue of the ICV Certificate, MoIAT has granted authorization to a select group of professional firms. Being one of the certifying bodies, we are eager to help you with the certification procedure.

Who requires an ICV Certificate, and why?

According to the ICV rules, any organisation, whether it is located inside the UAE or outside of it, may receive an ICV Certificate. Since the ICV Score is a crucial component of their tender review and award process, Tier 1 suppliers (suppliers who directly provide products or services to the Partners of the Program) may be compelled to disclose it as part of the National ICV Program. To guarantee that they are competitive in their tenders with Tier 1 suppliers, Tier 2 and lower provider may also be required to provide their ICV Certificate. Seven.

What does the ICV Score indicate?

The Company’s value addition to the economy of the UAE is shown by the ICV Score. The Score is calculated using the following factors and is expressed as a percentage:

  1. Goods Manufactured or Third Party Spending
  2. Investments
  3. Emiratization
  4. Expatriate Contributions
  5. Bonus – Exports, Emirati Head Counts and the Investment Growth

What are the main factors to take into account while applying for an ICV Certificate?

The National ICV Program should take into account the following points:
  • A licenced auditor from the UAE Ministry of Economy must sign audited financial statements that were made in line with IFRS and were no more than two years old from the certifying year.
  • For each licence (legal entity) a corporation has, an ICV certificate must be obtained. A unified ICV certificate will, however, be given to the Business in that Emirate if its several branches there have identical operations and ownership.
  • Businesses that hold both manufacturing and commercial licences must segregate all of their accounting records into manufacturing and commercial activities; an ICV certificate will be given for each licence separately.
  • Management accounts for a time period of up to 9 months may be utilised for the ICV certification purposes for businesses that are less than 10 months established and do not have audited financial statements.
  • The ICV Certificate’s validity period.
  • Upon the release of the audited financial statements, the ICV Certificate is valid for 14 months.

Is there a benchmark or threshold that must be met before submitting a tender bid?

To submit a bid for a tender, there is no set score minimum or benchmark. The score is thoroughly assessed using the Company’s audited financial accounts, and it varies depending on the various qualities. Tender participation by a company without an ICV certificate will result in a score of 0 for the ICV.

Can I get an ICV certificate at the combined or consolidated level?

Each individual licence requires an ICV Certificate to be obtained, therefore each legal company within a group would need to get one on their own. If financial statements are merged or consolidated, accurate disclosures about the group entities and the breakdown of assets, liabilities, revenues, and costs for each legal organisation are necessary.

How much does getting an ICV Certificate cost?

Depending on the company’s size and the steps necessary to provide the ICV Certificate, different fees apply for the ICV Certificate.