Posts in category: ICV Certificate

The UAE government launched the In-Country Value (ICV) program as a strategic endeavour to boost the country’s economy by encouraging firms to contribute to local growth. The ICV certificate is an important tool for enterprises looking to connect with the UAE’s economic goal and open up new prospects in government and semi-government initiatives.

In this article, we’ll look at the significance of the ICV certificate, its benefits, and how it helps businesses succeed in the UAE’s competitive market.

What Is The ICV Certificate?

ICV Certificate is an official document issued by ADNOC approved ICV Certifying body, that certifies the in-country value contribution of a company operating  in the UAE. 

The ICV accreditation assesses a company’s contribution to the UAE economy using certain criteria, which include:

• Local Procurement
• Emiratisation (Hiring UAE nationals)
• Investing in Local Industries
• Export Performance

This certification is required for enterprises who want to compete in bids with government and semi-government entities including ADNOC, Etisalat, and Mubadala.

What is the importance of an ICV Certificate in UAE?

1. Increases Competitiveness in Tenders

The ICV score is an important consideration for awarding contracts. Businesses with better ICV scores receive favour in government and semi-government procurement processes, giving the certificate a competitive edge.

2. Shows Commitment to Local Growth

An ICV accreditation demonstrates a company’s commitment to assisting the UAE’s economic diversification and environmental objectives. This commitment helps the company’s reputation and credibility in the local market.

3. Gain Access to Lucrative Opportunities

Businesses that hold an ICV accreditation can bid on high-value projects with the government and semi-government bodies. This creates huge revenue-generating opportunities.

4. Encourages Sustainable Practices

The ICV initiative encourages businesses to embrace sustainable practices, such as hiring Emirati workers and sourcing materials locally, thus promoting long-term economic stability.

5. Supports National Objectives

The UAE government’s objective includes economic diversification, employment development for UAE citizens, and support for local industries. The ICV program directly supports these objectives, making it a key component of the nation’s development plan.

Who Benefits From the ICV Certificate?

1. Government and Semi-governmental Entities

These organisations use the ICV program to ensure their expenditure benefits the UAE economy.

2. Businesses Seeking Contracts

Companies in industries such as oil and gas, construction, manufacturing, and IT benefit greatly from having an ICV accreditation.

3. The UAE Economy

The initiative supports local industries, creates jobs, and lowers dependency on imported goods, all of which contribute to the nation’s overall economic growth.

How Does the ICV Certificate Affect Businesses?

1. Encourages local procurement

Companies are encouraged to source products and services from local suppliers, thereby benefiting the local economy.

2. Promotes Emiratization

Hiring UAE citizens improves a company’s ICV score, which aligns with the government’s goal of expanding opportunities for Emiratis.

3. Encourages Investment in Local Industries

Businesses are encouraged to invest in local manufacturing and services, which helps the UAE’s industrial growth.

4. Promotes Transparency and Accountability

The certification process compels organisations to keep accurate and transparent financial records, thereby encouraging good governance.

How to Get an ICV Certificate?

To get an ICV certificate, organisations must:

• Prepare audited financial statements
• Ensure compliance with UAE regulations
• Engage with an Approved Certifying Body
• Submit financial information to an authorised body for review
• Identify avenues for improving your ICV score, such as expanding local procurement or Emiratisation activities

How AbstractICV Can Support Your ICV Journey

AbstractICV specialises in helping firms navigate the ICV certification procedure. 

Our services involve 

• Preparing financial data for examination.
• Issuance of ICV Certification
• Identifying techniques for increasing your ICV score.
• Ensuring compliance with UAE regulations.

Our team of professionals assures a smooth certification procedure, allowing you to realise the full potential of the ICV program.

Conclusion

The ICV certificate is more than just a compliance requirement; it is a strategic instrument that allows firms to acquire a competitive advantage, contribute to the UAE’s economic progress, and access lucrative prospects. Companies that participate in the ICV program not only increase their market presence, but also contribute significantly to the nation’s vision of a sustainable and diverse economy.

Ready to get your ICV certificate? Contact AbstractICV today to find out how we can help you achieve ICV and prosper in the UAE’s thriving business environment.

Who Needs an ICV Certificate in the UAE?

The In-Country Value (ICV) program, initiated by the UAE government, has become a cornerstone for businesses aiming to align with the nation’s economic development goals. An ICV certificate is not just a document but a key requirement for companies looking to enhance their competitiveness in government and semi-government contracts.

In this blog, we’ll explore who needs an ICV certificate, its importance, and how businesses can benefit from obtaining it.

What Is the ICV Certificate?

The ICV certificate is a formal document issued by certifying bodies authorized by the UAE Ministry of Industry and Advanced Technology (MoIAT). It evaluates a company’s contribution to the local economy based on parameters such as local procurement, Emiratisation, investments, and export activities.

The program incentivizes companies to prioritize local suppliers, hire Emirati talent, and invest in the UAE’s economy, fostering sustainable growth.

Who Needs an ICV Certificate?

The ICV certificate is essential for businesses that:

1. Supply Goods or Services to Government Entities

Companies bidding for contracts with government bodies like ADNOC, Etisalat, and Mubadala are required to present a valid ICV certificate. These entities prioritize businesses with higher ICV scores, making the certificate a competitive advantage.

2. Work with Semi-Government and Large Corporations

Many semi-government organizations and large private corporations in the UAE have adopted the ICV program to evaluate suppliers. If your business provides goods or services to such entities, obtaining an ICV certificate is crucial.

3. Aim to Participate in Tenders

Businesses looking to participate in tenders floated by government or semi-government organizations must have a valid ICV certificate. It serves as a critical evaluation factor in awarding contracts.

4. Align with UAE Economic Goals

Companies committed to supporting the UAE’s vision for economic diversification and sustainable growth benefit from obtaining an ICV certificate. It demonstrates alignment with national priorities and boosts business credibility.

Industries That Commonly Require an ICV Certificate

While the ICV program applies to all sectors, certain industries are more likely to require the certificate due to their close ties with government projects:

1. Oil and Gas

Companies supplying goods or services to ADNOC or other energy sector entities need an ICV certificate to qualify for contracts.

2. Construction and Infrastructure

Firms involved in large-scale construction or infrastructure projects with government backing must present an ICV certificate.

3. Manufacturing

Manufacturers supplying locally produced goods to government or semi-government entities benefit significantly from the ICV program.

4. IT and Telecommunications

Suppliers to entities like Etisalat and DU are often required to have an ICV certificate to demonstrate their local contributions.

Why Is the ICV Certificate Important?

1. Competitive Edge in Tenders

Businesses with higher ICV scores have a better chance of securing contracts, as government entities prioritize local contributions.

2. Enhanced Credibility

An ICV certificate showcases a company’s commitment to the UAE’s economic growth, boosting its reputation among clients and stakeholders.

3. Access to Lucrative Opportunities

With an ICV certificate, businesses can access a wider range of tenders and projects, increasing revenue potential.

4. Support for National Goals

By aligning with the ICV program, businesses contribute to the UAE’s objectives of economic diversification, Emiratisation, and local industrial growth.

How to Obtain an ICV Certificate

To obtain an ICV certificate, businesses must follow these steps:

1. Prepare Audited Financial Statements

Ensure your financial statements for the most recent fiscal year are audited and compliant with UAE regulations.

2. Engage With an Approved Certifying Body

Submit your financial data to a certifying body authorized by MoIAT for ICV score calculation.

3. Receive the Certificate

Once verified, the certifying body issues the ICV certificate, valid for 14 months.

Who Doesn’t Need an ICV Certificate?

While the ICV program is beneficial for many businesses, not all companies require certification. For instance:

• Small Businesses: Companies not engaged in government or semi-government contracts may not need an ICV certificate.
• Businesses Without Local Operations: Firms that do not contribute significantly to the UAE economy might not benefit from obtaining the certificate.

How AbstractICV Can Help

At AbstractICV, we specialize in helping businesses navigate the ICV certification process. Our team of experts ensures that your financial data is accurately prepared, maximizing your ICV score and enhancing your eligibility for contracts.

Our Services Include:

• Assistance with financial audits
• Guidance on improving ICV parameters
• Streamlined certification and renewal processes

Conclusion

An ICV certificate is essential for businesses aiming to thrive in the UAE’s competitive market, particularly those working with government and semi-government entities. By understanding who needs an ICV certificate and its importance, companies can align with the UAE’s economic goals and unlock new opportunities for growth.

Ready to obtain your ICV certificate? Contact AbstractICV today for expert assistance!

Get Your ICV Certificate In 2025 from a Renowned ICV Certifying Body in UAE (ADNOC Approved)

Are you looking to boost your business opportunities in UAE, support local economic growth, increase your chances in government contracts and tenders and gain competitive advantage in the UAE business landscape? You will probably need an ICV Certificate for your company. 

Whether you are a budding entrepreneur or established enterprise in the UAE, achieving ICV certification showcases your commitment to Emiratization and boost national economic growth. The ICV certification is considered as the badge of trust for businesses operating in the UAE and aimed to boost national economic growth. 

Get Your ICV Certificate from a renowned ICV Certification Body in UAE. Let us help you understand the key aspects of ICV Certification and find some of the renowned ICV Certification Services Providers in UAE. 

The In-Country Valuation Program

The In-Country Valuation (ICV) Program has been introduced in the Middle East and this initiative was taken by the Abu Dhabi National Oil Company, also called ADNOC, the national oil corporation to foster the growth of the local economy as well as diversify the economy. In 2021, the UAE introduced In-country valuation as part of the “Projects of the 50”, under the oversight of the Ministry of Industry and Advanced Technology (MoIAT). 

ICV Certification in UAE

The main objective of the ICV program is to redirect larger parts of procurement expenditures of local industries to the national economy and boost the economic performance of the country. Manufacturing of local goods and services, local investments, and hiring and development of Emiratis will be considered for ICV certification and scores. Simply put, the ICV considers your contribution to the national economy.

What are the objectives of the ICV program?

• Supply Chain Localization 
• Boost Foreign Investments
• Economic Diversification
• Increasing Exports
• Create Private Sector Job Opportunities 
• Promote GDP Growth
• Increase Private Sector’s Involvement in National GDP Growth

Who needs ICV Certification?

The national ICV program includes some of the government and semi-government entities called as participating entities who are official partners of the program. 

Some of the participating entities are Abu Dhabi National Oil Corporation (ADNOC), Abu Dhabi Department of Economic Development (ADDED), Aldar Properties, Mubadala, Etisalat, Edge, Etihad Rails, Emirates Nuclear Energy Corporation (ENEC), Sharjah Investment and Development Authority (Shurooq), and Emirates Global Aluminium. Any company that needs to apply for tenders and contracts of these participating institutions or other government contracts are required to obtain ICV Certification.  

The ICV Certification is highly required for companies that wish to participate in local tender and contracts and do business with the UAE government. 

The following are the organisations that should obtain ICV certification:

Tier 1 & 2 Suppliers & Contractors: The tier 1 suppliers who provide goods and services to participating institutions in the National ICV Program should obtain ICV certification and disclose their ICV score which is required for tender calculations. The tier 2 and Below Supplier who needs to bid against the tier 1 supplies also need to provide their ICV certification. 

ADNOC Suppliers and Contractors: Any suppliers or contractors such as logistics providers, manufacturers, engineering firms etc that provide goods and services to the ADNOC are required to obtain an ICV Certification. 

Companies Seeking Government Contracts: Any organization including technology, healthcare, and transportation etc, that wish to work directly with the UAE government must obtain ICV certification.  

By obtaining an ICV certification, the suppliers and vendors gain a competitive advantage in the tendering process. 

What is the eligibility to obtain ICV certification in UAE?

Here we have listed some of the basic requirements for any organization to obtain an ICV certification.

Companies must meet the following the eligibility criteria to obtain an ICV certification:

• Businesses should be registered with the government agency and have a trade license. 
• There must be a physical office in the UAE and provide products or services.
• Organisations must satisfy the ICV requirements based on their industry sector.
• Depending on the industry sector, In-Country Valuation provided guidelines explaining the standards that should be followed b companies in order to obtain ICV certification.

For instance, the ICV program considers the degree of local components in products and services provided, local investments and degree of employment of Emiratis in oil and gas industry and many other factors. 

• For obtaining ICV Certification, it is mandatory for companies to go through audit conducted by an ICV Certifying Body. According to the ICV requirements of the specific industry, the ICV certification provider will evaluate the performance of company and provide accreditation depending on the ICV score. 

The ICV obligations are set out to verify that the businesses that apply for certification are committed to the development of the UAE and to the national economy. 

How to get an ICV Certificate in UAE?

Here is the general procedure for companies to do for obtaining an ICV Certification in UAE:

Step 1: Understanding The Eligibility Criteria

Businesses must be aware of the eligibility criteria and requirements such as to apply for ICV Certification.

Step 2: Select Authorized ICV Certifying Body

To begin with, you need to select a certification body approved by the MoIAT (Ministry of Industry and Advanced Technology). The certifying body will perform an audit to evaluate your financial statements, records, local procurement, employment details, and other factors that contribute to determine your ICV score.

Step 3: Document Submission

To obtain ICV Certification, you need to prepare and submit relevant documentation such as audited financial statements, records on local suppliers, local employment documents, company’s employee training programs, local investments, CSR (Corporate Social Responsibility) initiatives within the UAE. 

Step 4: ICV Score Evaluation & Receive ICV Certificate

Companies should submit all the required documents along with the ICV Certification application to the ICV Certifying bodies. The certifying body will calculate the ICV score based on the available data and evaluate the application.

Step 5: Renewal & Annual Updates

The ICV certification needs to be renewed annually to update the ICV score and keep the certificate valid. By updating your ICV score regularly, you will improve your position in the market. You can increase the ICV score by improving local investments, increasing relationships with local suppliers and local hiring. 

What is the role of the ADNOC ICV Certifying Body or ICV Certification Provider in UAE?

The ICV certifying Body also known as ICV Certification Provider, plays a crucial role in helping businesses in obtaining and managing the ICV certification. 

Here’s how the ICV certifying Body can help you:

ICV Assessments & Certification: 

The ICV certifying body will evaluate and certify companies based on their compliance with ICV requirements which involves numerous factors such as the degree to which local content is utilized for goods and services, Emiratization, investments in local vendors and suppliers and other national economic contributions.  

Boost Local Economic Growth & Diversifications 

By certifying companies that contribute to national development and economic diversification in UAE, the ICV certifying bodies play a vital role in encouraging businesses to make local investments. 

Enhance Local or Government Procurement 

To gain a competitive advantage in government contracts, tenders and procurement opportunities in the UAE, ICV certification is a must. The ICV certifying body makes it possible by providing an independent assessment of ICV performance of businesses. Thus, helping government organizations to make better decisions in selecting suppliers and vendors. 

Importance And Benefits of Obtaining an ICV Certification:

Let us explain the importance of ICV certificate and how it will remarkably benefit your company:

Access to Government Contracts and Tenders

One of the significant benefits of obtaining an ICV certification is that businesses gain an edge in the government contracts and tenders. As most of the government entities and big companies, especially high-value industries such as oil and gas, have a preference working with suppliers that hold an ICV certificate. 

Increased Competitiveness in the Market

Many organisations and government entities choose to sanction contracts and tenders to companies with high ICV scores. Businesses are more likely to miss out on major opportunities without the ICV certification. 

Financial Benefits

By holding an ICV certificate, you will have the opportunity to receive tax credits and incentives that reduce your business costs and increase your income. 

Increased Trust and Credibility

The ICV certification shows the company’s commitment to UAE economy, compliance with local standards, improving trust with customers, partners and 

Compliance and Recognition

A business with ICV certification will comply with the UAE regulations and guidelines, which is a mandatory requirement for companies that wish to bid on major projects as it gives them recognition and credibility in the market. 

But… How do you get an ICV Certification?

Get the Game-Changing ICV Certificate from one of the best ICV Certification Providers in UAE

Some of the renowned ICV Certification Providers in UAE in 2025

Here we have listed some of the renowned ICV certifying Bodies approved by ADNOC 

1. Abstract Accounting and Auditing

Abstract Accounting & Auditing is a professional services firm based in the UAE that offers auditing, accounting, taxation, and ICV certification services to businesses of all sizes. As an ADNOC approved ICV Certifying Body, they provide the expert ICV Certification services to companies in the UAE.  

With a team of qualified professionals, Abstract Accounting & Auditing is committed to provide exceptional services that help businesses increase operational efficiency, achieve compliance with regulations, and improve overall financial performance.

Abstract Accounting & Auditing ICV certifying body, authorized by the MoIAT (Ministry of Industry and Advanced Technology) in the UAE, issuing ICV certificates to numerous companies.

They provide services including ICV Certification, auditing, accounting, bookkeeping, taxation services including corporate tax services in UAE, etc to help businesses manage their finances effectively. With in-depth industry expertise and extensive skill set, they help businesses ensure compliance, make informed decisions and stay competitive.

Thus, Abstract Accounting & Auditing has been working with various clients across different sectors as a reliable and trustworthy partner for businesses in the UAE, offering expert guidance and assistance to help them navigate the complexities of financial management processes such as accounting, auditing, taxation, ICV certification and regulatory compliance. They are committed to standards of financial excellence and help clients thrive in the competitive market.

2. KPMG Lower Gulf Limited

KPMG Lower Gulf Limited is one of the top global audit, tax and advisory services firms catering to a wide range of international clients (public and private sector) across all major divisions of business and the economy in the UAE, for over 50 years. 

KPMG Lower Gulf is part of KPMG International Cooperative’s global network of professional member firms. These firms are operating across143 countries, with more than 270,000 partners and employees. KPMG Lower Gulf was established in 1973 in the UAE, functioning with its global member network to provide bespoke professional services by blending its local knowledge with global expertise.

KPMG is one of the ICV Certifying Body Approved by ADNOC, that aims to boost opportunities and partnerships in the UAE private sector. They continue to empower businesses, public-sector agencies, governments, and non-profit organizations through their audit and assurance practices. 

3. PriceWaterhouseCoopers

PriceWaterhouseCoopers (PwC) is one of the world’s largest professional services firms functioning across 158 countries with over 360,000 people, providing assurance, tax, and business advisory services. 

As one of the top global professional services firms, PwC can offer a broad range of services to businesses and brings a variety of talents and expertise to address & solve challenges of their clients. 

PWC has been operating in the Middle East region for 40 years with over 11,000 employees across 12 countries such as Bahrain, Lebanon, Libya, Oman, the Palestinian territories, Egypt, Iraq, Qatar, Jordan, Kuwait, Saudi Arabia and the United Arab Emirates. 

PwC has been practicing in the United Arab Emirates for over 25 years and specialises in Audit, Assurance, Advisory and Taxation. PwC is one of the independent ICV certifiers helping suppliers with their ICV certification and score improvement.

4. Deloitte & Touche (Middle East)

Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited and is the first Arab professional services firm established in the Middle East region with continuing existence since 1926. 

Deloitte & Touche (M.E.) is one of the leading global professional services firms, providing audit, tax, financial advisory, and consulting services through 26 offices in 15 countries. 

Deloitte is one of the authorized certifiers for ADNOC’s ‘in-country value’ programme, to ensure that suppliers in the UAE are paying their contribution to the national economy.

Deloitte brings high-level competence and deep expertise to help clients succeed wherever they operate. They have contributed to the development and advancement of the professional services industry globally to foster growth and innovation. 

5. Bakertilly MKM Chartered Accountants

Baker Tilly JFC is an independent member firm of Baker Tilly International, based in Dubai. Baker Tilly JFC is a professional service firm providing the highest quality of Auditing, Consulting and Business Advisory Services since 1931, by liaison with clients from various sectors. 

They provide clients with a reliable coast-to-coast and global advantage in key areas of the U.S. and in many of the leading global financial centers – New York, San Francisco, Los Angeles, Chicago, Boston and London.

Baker Tilly seamlessly offers professional services to global clients through worldwide offices of the member firms. They offer specialized consultancy services to both the public and private sector organizations ranging from small-to-medium companies to large multinational corporations. 

Baker Tilly Advisory Group, LP and Baker Tilly US, LLP (Baker Tilly) offer services in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations and professional standards. Baker Tilly US, LLP is a licensed independent CPA firm providing attest services to their clients. Baker Tilly Advisory Group, LP and its subsidiary entities are not licensed CPA firms.

6. Ernst & Young

EY is a leading global firm offering assurance, transaction, tax, and advisory services. Established in 1849 in the United Kingdom, EY is one of the world’s largest professional services firms. Along with KPMG, PwC, and Deloitte, EY is one of the Big Four accounting companies. 

EY has a network of member firms that are operated as independent legal entities in a partnership, with over 700 offices in more than 150 countries. In 1989, a merger of the two accounting firms, Ernst & Whinney and Arthur Young & Co, occurred forming a partnership and named Ernst & Young.

Through their strategic partnerships with technology and industry leaders, and businesses with distinctive abilities, they utilize powerful technology, specific skill sets and industry expertise to help their clients address their toughest challenges.

7. Crowe

Crowe LLP in UAE is a member firm of Crowe Global and is ranked as the 5th largest accountancy network in the UAE. Crowe LLP is a public accounting and consulting firm providing auditing, tax, and business consultancy services to public and private companies. The firm constantly establishes a commitment to quality and provides unmatched services to its clients. The firm operates in more than 200 independent accounting and advisory services offices in more than 130 countries around the globe.

Crowe Mak, a Crowe Global firm, is one of the Certifying Bodies, authorized by MoIAT, that contribute to the successful implementation of the ICV program. 

As a multidisciplinary practice, Crowe offers unprecedented access to international expertise, the highest standards of compliance, ensuring that their clients make informed decisions that lead to lasting value.

Find the Best ICV Certification Provider in UAE

By optimizing their supply chains, increasing local investments, and Emiratisation, businesses can improve their ICV scores, meet eligibility for government/public tenders and prove their contribution to the national economic growth. 

In conclusion, businesses in the UAE, specifically those who want to bid in government tenders, and ADNOC projects are required to obtain the ICV certification. The procedure for the ICV certification process is highly complex, so it is crucial to choose the ICV certifying body that caters to your ICV needs. 

The UAE’s In-Country Value (ICV) initiative is critical for fostering local economic growth, Emiratisation, and industrial development. Obtaining the ICV certificate, which acts as documentation of a company’s contribution to the UAE economy, is an essential component of this program. Understanding the validity duration of the ICV certificate is critical for businesses to ensure compliance and competitiveness in government and semi-government contracts.

This blog provides a thorough summary of the ICV certificate’s validity, renewal process, and advice for remaining compliant.

What Is The ICV Certificate?

The ICV certificate is an official certification issued by a certifying authority approved by the UAE Ministry of Industry and Advanced Technology (MOIAT). It assesses a company’s contribution to the UAE economy using particular criteria such as local procurement, Emiratisation, investments, and exports.

The ICV certificate is necessary for enterprises bidding on contracts with government bodies and significant corporations that participate in the ICV program, such as ADNOC, Etisalat, and Mubadala. A certified certificate increases a company’s chances of getting contracts and displays its commitment to the UAE’s economic aims.

Validity Period of the ICV Certificate

The ICV certificate is valid for 14 months from the date of issue. This prolonged validity term guarantees that firms have enough time to use their certifications for tenders and contracts without having to renew them frequently.

Key Points to Consider About the Validity Period

Single-Year Financial Basis: The certificate is based on the company’s audited financial statements from the most recent fiscal year.

Renewal Timing: Although valid for 14 months, businesses are recommended to begin the renewal procedure well in advance to avoid lapses.

Continuous Tenders: A valid ICV certificate is required for participation in tenders with companies that need ICV compliance.

Why is the Validity Period 14 Months?

The 14-month validity period aims to balance the following:

Business Flexibility: During this period, enterprises can engage in tenders and contracts without the necessity for quick re-certification.

Alignment with Financial Reporting: Because the certificate is based on audited financial accounts, its validity extends somewhat beyond one fiscal year to account for differences in financial reporting timeframes.

Encourage Regular Updates: The validity period guarantees that organisations update their financial data on a regular basis, keeping the ICV program current and relevant.

What happens when the certificate expires?

Once the ICV certificate has expired, it cannot be used to submit tenders or establish compliance with ICV criteria. Businesses must renew their certification to continue working on government and semi-government projects.

Consequences of an Expired Certificate: Tender Ineligibility – Expired certificates prevent organisations from competing on ICV-compliant projects.

Missed Opportunities: Without a legitimate certificate, organisations risk losing out on valuable projects and contracts.

Reputation Impact: Having a valid certificate demonstrates a company’s dedication to the UAE’s economic aims. An expired certificate can indicate noncompliance.

How Do I Renew the ICV Certificate?

Renewing the ICV certificate is a simple process that requires updating financial information and submitting it for re-certification. Here’s a step-by-step instructions:

1. Prepare Updated Financial Statements

Ensure that your company’s audited financial accounts for the most recent fiscal year are prepared. These materials provide the foundation for calculating the ICV score.

2. Select an Approved Certifying Body

Submit your financial statements to a certifying organisation approved by the MoIAT. Select a reputable and experienced certifying authority to ensure a seamless process.

3. Calculate the new ICV Score

The certifying authority will analyse your financial information and determine your revised ICV score based on the most recent fiscal year’s contributions.

4. Receive the New Certificate

Once the certifying agency has verified your information, they will issue a reissued ICV certificate valid for the next 14 months.

Tips for Keeping a Valid ICV Certificate

To ensure continuous participation in ICV-compliant tenders, organisations should implement the following practices:

1. Keep Track of Expiration Dates

Keep track of your certificate’s expiration date and start the renewal process at least 1-2 months in advance.

2. Keep Accurate Financial Records

Regularly update and examine your financial statements to ensure they are ready for submission at renewal time.

3. Work with ICV Consultants

Engage ICV advisors who can help you navigate the renewal procedure and improve your score.

4. Align Operations with the ICV Goals

To improve your score and competitiveness, continue to work on enhancing local procurement, Emiratisation, and other ICV characteristics.

Advantages of Renewing the ICV Certificate On Time

Renewing your ICV certificate before it expires provides the following benefits:

Continuous Eligibility for Tenders

A valid certificate enables easy participation in government and semi-government tenders.

Enhanced Business Reputation

Timely renewal indicates your dedication to the UAE’s economic growth objectives.

Improved Scoring Opportunities

Updating financial data during renewal can result in improvements in your ICV score, offering you a competitive advantage.

Operational Stability

Maintaining a valid certificate allows for continued business operations and access to lucrative contracts.

Common Challenges to Maintaining Validity

Despite the uncomplicated renewal process, firms may face problems such as:

Delayed Financial Audits: The renewal procedure may be delayed if audited financial statements are prepared late.

Lack of Awareness: Some businesses fail to monitor their certificate’s expiration date, resulting in lapses.

Insufficient Local Contributions: Failure to meet the ICV standards during the renewal term may result in a lower score.

How AbstractICV Can Help

AbstractICV specialises in helping businesses navigate the ICV certification and renewal procedure. With our knowledge, you can ensure timely preparation and submission of financial data, receive personalised suggestions for improving your ICV score, maintain compliance with UAE legislation and maximise tender chances.

Conclusion

The ICV certificate is an important tool for businesses in the UAE since it allows them to contribute to the local economy and receive government contracts. With a 14-month validity period, you must be proactive in renewing your certificate to preserve competitiveness and compliance.

Businesses may assure continuous participation in the ICV program and connect with the UAE’s aim for long-term economic growth by understanding the renewal process and implementing best practices.

Need help with your ICV certification? Contact AbstractICV now for expert advice and support!

How is the ICV score calculated ?

The UAE government’s In-Country Value (ICV) program is a crucial initiative for boosting the local economy by encouraging enterprises to contribute to Emiratisation, local procurement, and economic diversification. The ICV score, which quantifies a company’s contribution to the UAE economy, is a critical component of this program.

Understanding how the ICV score is computed is critical for businesses seeking government and semi-government contracts. This article explains the calculation procedure, the components involved, and how to increase your ICV score.

What Is The ICV Score?

The ICV score is a percentage-based rating given to businesses based on their audited financial accounts. It measures how much value a company creates in the UAE through local spending, employment, investment, and exports.

This score is critical for enterprises competing on contracts with UAE government entities and major corporations like ADNOC, Etisalat, and Mubadala. Higher scores increase a company’s chances of getting contracts, providing a significant competitive advantage.

Factors Affecting ICV Score Calculation

The ICV score is derived using certain criteria established by the Ministry of Industry and Advanced Technology (MoIAT). The criteria include:

1. Local Procurement: Purchasing goods and services from UAE providers.

Impact: A larger percentage of local procurement boosts the ICV score. Businesses are encouraged to prioritise local suppliers over overseas ones.

2. Emiratisation: The percentage of UAE nationals employed by the company.

Impact: Hiring and retaining Emirati employees, particularly in skilled positions, considerably improves the ICV score. Emirati training programs and professional development initiatives are also under consideration.

3. Asset Investment: Capital spent on local infrastructure, equipment, and operational facilities in the UAE.

Impact: Companies that invest in assets such as manufacturing plants, warehouses, and office buildings improve their overall score.

4. Exports: Revenue from non-oil exports originating in the UAE.

Impact: Export activities contribute to the UAE’s economic diversification, and enterprises that export receive a higher ICV score.

5. Definition of Operating Costs in the UAE: The fraction of a company’s operational expenditure assigned to UAE-based resources such as utilities, rent, and local services.

Impact: Increased operational spending within the UAE leads to a higher score.

6. Subcontracting: Hiring UAE-based subcontractors for projects and services.

Impact: Subcontracting with local firms displays a commitment to the UAE economy, which improves the score.

ICV Score Calculation Formula

The ICV score is derived as a proportion of the company’s overall contribution to the UAE economy divided by its total income. 

The formula is: 

ICV Score (%) = (Total Local Contribution ÷ Total Revenue) × 100

Local procurement, Emiratisation, local investments, and exports are all examples of “local contributions.”

Steps for Calculating the ICV Score

Prepare the Audited Financial Statements

Companies must produce audited financial accounts from the most recent fiscal year. These materials form the basis for calculating the ICV score.

Evaluate Local Contributions

Analyse your financial data to determine contributions in the following categories:

• Spending with UAE-based suppliers
• Salaries and benefits are paid to Emirati employees
• Investing in local infrastructure and assets
• Revenue from exports
• Adjust for Non-Qualifying Expenses
• Exclude costs that do not benefit the UAE economy, such as imports and overseas operating expenses

Apply The Formula

Use the ICV calculation to determine your score as a proportion of total revenue

Submit to an Approved Certifying Body

Send your financial information to a MoIAT-approved certifying organisation for validation. The certifying body examines your documentation, validates your calculations, and issues the ICV certificate.

How Can Companies Improve Their ICV Scores?

Achieving a competitive ICV score necessitates strategic and operational changes. Here are some actionable methods to enhance your score:

1. Increase local procurement

Prioritise UAE-based suppliers of goods and services. Develop long-term relationships with local vendors to maintain consistent local spending.

2. Emphasis on Emiratisation

Hire more UAE nationals and support their professional development. Offering competitive salary packages and opportunities for advancement might help increase retention rates.

3. Invest in Local Assets

Develop operating facilities in the UAE, including factories, warehouses, and offices. These investments not only boost your score but also display your support for the local economy.

4. Increase Export Activities

Expand your company’s export operations to help the UAE’s non-oil economy. Diversifying your revenue streams through exports will dramatically boost your score.

5. Work with ICV consultants

Work with professionals that can audit your financial data, find areas for improvement, and recommend custom tactics to increase your ICV score.

Common Challenges in ICV Score Calculation

While calculating the ICV score is straightforward, businesses frequently confront problems such as:

Complex Financial Data: Parsing financial statements into ICV-relevant components can be time-consuming.

Limited Local Procurement Options: Some businesses rely significantly on imported items, reducing options for local expenditure.

Low Emiratization Rates: Recruiting and maintaining Emirati employees can be difficult, particularly in specialised areas.

Lack of Awareness: Many firms are unaware of the ICV program’s benefits or how to align their processes to improve their score.

Benefits of a High ICV Score:

Achieving a high ICV score has various benefits, including:

Improved access to government contracts

Companies with higher scores are given preference for bidding from government and semi-government institutions such as ADNOC and Etisalat.

Enhanced reputation

A high ICV score demonstrates your dedication to assisting the UAE economy, which increases your reputation with clients and partners.

Alignment with UAE Vision 2030

A high score indicates your contribution to the UAE’s long-term economic goals, which include diversification and sustainability.

Achieve Competitive Edge

In industries with fierce rivalry, a high ICV score can set your company apart and increase your chances of landing big deals.

The Function of Certifying Bodies in ICV Score Calculation

Approved certifying bodies are critical to assuring the accuracy and reliability of ICV results. 

The Certifying bodies will:

• Review and validate audited financial accounts.
• Comply with MoIAT requirements.
• Issue the ICV certificate, which is valid for 14 months.

Conclusion

The ICV score is an important indicator for businesses operating in the UAE because it shows their contribution to the country’s economic progress. Companies can attain a competitive score and unlock major opportunities in government procurement by understanding the factors that influence its calculation and applying performance-enhancing initiatives.

Whether you want to enhance your score or navigate the certification process, working with a seasoned ICV consultant like AbstractICV can make all the difference.

Do you need help with your ICV score? Contact AbstractICV today for expert advice and personalised solutions.