MOIAT Reduces National ICV Certificate Fees For SMEs in Collaboration With Ministry Of Economy
The UAE’s Ministry of Industry and Advanced Technology (MOIAT), in collaboration with the Ministry of Economy (MOE), is enticing Small and Medium Enterprises (SMEs) registered under the National Program for SMEs to receive the National In-Country Value (ICV) Certificate for as little as AED 500.
The price reductions boost the ministry’s flagship initiative, Make It in the Emirates (MIITE), which aims to increase the industrial sector’s contribution to the UAE GDP to AED 300 billion by 2031.
What are the Objectives of the ICV Program?
The UAE government’s “Make It in the Emirates” project promotes local product development and manufacturing. The Emirates Development Bank is driving this project from the front, having already committed an AED 30 billion fund to support 13,500 large firms and SMEs in the UAE.
The National ICV Program, which commenced in 2021, is a cornerstone of the UAE’s economic policy aiming at increasing the competitiveness of UAE-made products in regional and international markets.
The ICV certification program was first presented by ADNOC in Abu Dhabi in 2018 and was then adopted by other government institutions in the UAE. The ICV certification is the UAE government’s acknowledgement of the company’s localisation of its production process through investment in the country’s localised personnel and manufacturing capacity, as shown in the ICV Scorecard.
The ICV score remains optional when bidding on federal government auctions and contracts. However, companies having ICV Certification receive significant precedence based on their ICV score.
ICV Score Calculation
The ICV score is determined by assigning proportional weightage to four primary business spending components, including
Manufacturing Cost and Third Party Spend, which account for 50% of the overall weight.
- Investment has a weightage of -25%.
- Emiratization carries a 15% weightage.
- Expat Contribution: 10% weightage.
- Furthermore, a 5% bonus weightage is assigned based on revenue generated outside the UAE, Emirati headcount, and investment growth.
- Finally, manufacturers who participate in the Industrial Technology Transformation Index (ITTI) will receive an additional 5% bonus weightage.
ICV For Small & Medium-sized Enterprises
The UAE government’s initiative to promote Emirati entrepreneurship is likely to focus heavily on small and medium-sized firms. The Undersecretary of the Ministry of Economy emphasises the importance of small and medium-sized enterprises in creating a knowledge-based economy that aligns with the UAE Centennial Plan 2071 and the Principles of the 50.
The price discounted incentive is thus intended to encourage enterprises registered under The National Program for SMEs to participate in the ICV certification program, in accordance with the National Strategy’s objectives of promoting economic growth and sustainable development.
The move supports MOIAT’s efforts to create an appealing business climate for both domestic and international investors, as well as to promote the growth and competitiveness of national industries.
How do I apply for ICV certification?
To join the ICV Program, entities must take a few easy steps:
- Submit audited financial accounts produced in accordance with the International Financial Reporting Standards (IFRS).
- Fill in the ICV template according to the recommendations.
- Contact one of the authorised certifying bodies for evaluation.
- Once the ICV certificate is received, the entity may submit it to one of the participating entities.
Who Can Provide ICV Certification?
The Ministry of Industry and Advanced Technology has issued a list of empanelled Certifying Bodies, who are authorised to perform a technical evaluation of company requests for In-Country Value (ICV) certification and issue certificates that meet the Ministry’s requirements.
Key Points to Consider:
- The time required to process the application will vary depending on the company’s size, number of employees, and preparedness to supply the necessary documentation to the certification companies.
- On average, the application processing may take one month. The ICV certificate is valid for 14 months from the date of release of the Audited Financial Statements.
- The entity may recertify throughout the validity of the ICV certificate using the same audited financial statements; nevertheless, the certificate will remain valid for 14 months from the date of issue of the original certificate.
- ICV accreditation is optional for those wishing to participate in federal government bids. If the provider fails to deliver an ICV certificate, the ICV score will be set to zero.
How We Help With ICV Certification:
To summarise, the reduction in the ICV certification price is a significant step towards the UAE’s commitment to supporting the growth of SMEs. The government empowers SMEs to compete on a bigger scale by simplifying and financially accessible certification processes. This effort not only strengthens SMEs’ contributions to the national economy, but it also demonstrates the UAE’s commitment to supporting innovation, economic variety, and sustainable development. With SMEs at the forefront of this economic transition, the future appears bright for both firms and the country as a whole.
AbstractICV provides complete advice to its clients seeking ICV certificate in Dubai for SMEs.
Our services encompass legal and financial due diligence to ensure compliance with all applicable regulations.
We take a proactive approach, assisting with the draughting of critical papers and liaising with government officials and certified bodies on our clients’ behalf.
AbstractICV is ready to assist SMEs in navigating this disruptive opportunity, thereby contributing to their success and the broader economic prosperity of the UAE.