Frequently Asked Questions FAQs About ICV Certification in Dubai

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.

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