ICV Certificate In Abu Dhabi, UAE

In-Country Value Certification in Abu Dhabi (ICV) is a government-managed program designed by that redirects large amounts of public spending to the UAE economy. It improves economic performance and benefits local industries. Although ICV certification is not mandatory, more organisations apply for it because it gives them an advantage when conducting tender assessments. Obtaining an ICV certificate in Abu Dhabi necessitates prompt adherence to all guidelines. The ICV-certifying organisation is solely responsible for providing the certificate. In this blog, let us explore everything regarding ICV certification in Abu Dhabi and the process of how to achieve it.

What is an ICV certificate in Abu Dhabi, UAE?

Abu Dhabi National Oil Company (ADNOC) launched the ICV Certification Program in the UAE. The ICV program is now overseen and managed by the Ministry of Industry and Advanced Technology (MOIAT). The strategy focuses on analysing the contribution of goods and services generated by firms in the UAE, which might include local investment and employment in industries such as oil and gas.

The ICV Certificate contains all the information about the in-country value of a business operating in the UAE. The MOIAT National ICV program established ICV Certification with the following goals:

GDP Growth

Offering GDP growth by sourcing more products and services domestically, hence encouraging foreign direct investment in Abu Dhabi and increasing GDP contributions from SMEs and the private sector.

Human Capital Development

Improving Emiratis’ access to private-sector work opportunities and strengthening local labour force competencies.

Technology Adoption

It entails increasing R&D (Research and Development) spending, improving national industry competitiveness, and promoting technology innovation and application.

Which Businesses Should Obtain ICV Certification?

The ICV certificate in Abu Dhabi, UAE has been a valuable certification for organisations in the UAE, spanning industries such as oil and gas, ICT, construction, and healthcare. All ADNOC contractors and suppliers, including its subsidiaries, must hold an ICV certificate. This comprises enterprises that provide ADNOC with goods and services, such as engineering firms, drilling contractors, and logistical providers.

The ICV certification program in Abu Dhabi is also excellent for organisations in other sectors looking to do business with the UAE government. For example, businesses who compete on government contracts in industries such as transportation, construction, and healthcare may be required to obtain ICV certification. To acquire ICV certification, providers must collaborate with their associated vendors. You can simply obtain an ICV certificate in Abu Dhabi by contacting a MOIAT-approved ICV certifying authority.

Benefits of ICV Certification in the UAE.

There are certain elements that are considered when obtaining ICV certification in Abu Dhabi. These include Emirati employment, finance from expatriates, revenue generated (outside the UAE), increased investment, and so on. As a result of the program, a new business line has emerged that will be supplied from the UAE. Here are some of the benefits of ICV for businesses:

ICV certification increases private sector participation, diversifies the GDP, and localises key supply chain components.
ICV certification also helps people who operate small or medium-sized enterprises expand and enhance their operations because supply chains may be easily localised.
ICV certification holders can take advantage of the contracts they receive from the federal government and partner companies.
MOIAT encourages local manufacturing units to bid directly on specialised procurement tenders. This enhances suppliers’ ICV scores while also benefiting the national economy.

Eligibility to obtain an ICV certificate in Abu Dhabi, UAE

Companies must meet specific eligibility requirements to obtain an ICV certificate in Abu Dhabi, UAE. Let’s look at some factors to consider when determining whether you’re eligible for an ICV certificate.

If you want to become ICV certified, your firm must be registered with the government and have a current licence.
Furthermore, they must be present in the UAE and provide either a service or product.
In addition to the general qualifications, organisations should meet the specific ICV standards for their industry segment.
The ICV program rules for each industry area specify the benchmarks that businesses must meet in order to be certified. For example, the ICV program takes into account a variety of factors, including the amount of local content in their products and services, the level of personnel, area infrastructure, and amenities.
To get ICV certification, businesses must first undergo an independent audit conducted by the relevant ICV certification agency. The certification organisation evaluates the company’s performance and grants accreditation based on the ICV score while keeping the previously established ICV parameters in mind.
ICV certification obligations are designed to ensure that certified firms contribute to the growth and enhancement of the local economy.

Should you get an ICV certificate?

Complicated data requirements raise worries about obtaining an ICV certificate. Earning this certification is not required, but it offers substantial benefits, particularly for firms that focus on engaging in security contracts and government bids.

Obtaining an ICV certificate allows you to raise your company’s profile and gain an advantage in the procurement process. It teaches potential clients about your responsibilities to give the most to the UAE’s economic environment, demonstrating your commitment to economic diversification and local content enhancement.

For businesses that meet the ICV program’s standards, ICV accreditation is the optimum strategic step. It not only increases your chances of landing public-sector projects, but it also aligns your business practices with the UAE’s objective of ensuring long-term economic development.

If your organisation is prepared to meet the certification standards, obtaining an ICV certificate in the UAE is a step towards exploring new opportunities and defining your investment in the country’s future.

Steps to Get An ICV Certificate in Abu Dhabi, UAE?

To obtain an ICV certification in Abu Dhabi, UAE, the company needs contact and obtain quotes from the appropriate certifying agencies. It should select a certifying body and award it based on the quotations received, followed by signing an engagement letter.

Businesses may need to adapt their operations to meet the ICV standards. This could include expanding local investments, hiring/training more UAE nationals, purchasing more goods/services from local suppliers, and so on. Now, let’s go over the ICV certification process:

Release the audited financial records.

Obtaining ICV accreditation in the UAE requires the release of audited financial statements. Companies fewer than ten months old should use management accounts to generate financial reporting in accordance with the Financial Reporting Standards (IFRS). IFRS provides globally recognised terminology for financial reporting. IFRS increases the company’s transparency, makes processes more trustworthy, and boosts stakeholders’ credibility.

Fill Out ICV Certification

A company’s ICV score is defined using the standard form, often known as the ICV template. It collects data on various areas of a business’s operation, such as local sourcing, Emirati employment, investment in community amenities, and many other factors that contribute to the local economy’s performance. When completing the ICV template, firms should strictly adhere to the ICV program instructions.

Evaluation of the ICV Template

The next step is to approach the appropriate certifying agencies to review ICV templates. The authorised certifying authority are independent businesses that have received approval from the ICV program to review and certify businesses for ICV compliance standards. The certifying organisations have the resources and knowledge needed to evaluate the ICV template and other required materials provided by the business. After evaluating the information provided, the certifying authority conducts an on-site audit to validate it.

Receiving an ICV Certificate

In this final phase, the certifying authority will issue the certificate after conducting a comprehensive review of the ICV template and supporting documents to ensure that the business meets the program’s standards.

What is the validity of an ICV certificate in Abu Dhabi, UAE?

ICV certification in Abu Dhabi, UAE is normally valid for 14 months from the date the audited financial statements are issued. Businesses must focus on renewing their ICV certification after one year to continue to benefit from its benefits.

Companies should first submit their amended financial papers. They should complete the new ICV template throughout the renewal process to ensure that it adheres to the program’s criteria and rules. The certifying authority will next review the updated data and, if the business continues to meet the ICV program’s requirements, will issue a renewed ICV certificate. Companies must remain compliant with the ICV criteria throughout the year to ensure that ICV scores meet renewal requirements.

Key Considerations for Obtaining ICV Certification in the UAE.

If you have decided to obtain ICV certification in Abu Dhabi, the following tips can help make the process more convenient and hassle-free.

IFRS Financials

The financial statements to be presented for ICV should be in accordance with International Financial Reporting Standards (IFRS), which is the obligatory standard in Abu Dhabi.

Branches Eligible for ICV Certification

A combined ICV certificate can be awarded to a supplier having many branches in the same Emirates that have the same operations and ownership specified on their licenses.

Owner Salary Credits:

If the owner is enrolled with the WPS (Wage Protection System), their income will be added. It will be limited to AED 2,000,000 (excluding bonuses) per month per owner.

Internal Expenses.

Except for depreciation expenses, the supplier’s internal costs will not be factored into the computations.

Employee Headcount

It indicates how many employees are accounted for each year.

Credit to Mainland Suppliers

When considering a supplier from the mainland, they can receive a 10% bonus in the ICV score, particularly for a trade licence. When considering an industrial licence, this would be a 50% incentive.

Payments to Government Authorities

The supplier’s payments to the free zone authorities and licensed organisations will be valued at 100% ICV.

Credit for Lease or Rental Payments

For payments involving direct contracts with landlords, the company can get an 80% incentive in the ICV Score for Lease/Rental Payment.

Credit for Utility Expenses

Payments to utilities can gain 80% credit if they are purchased directly by the company and the invoice shows the company as the consumer.

Conclusion

ICV certification in Abu Dhabi, UAE has developed since its inception and continues to grow. The finest ICV auditors collaborate closely with their clients to ensure that their compliance with the ICV criteria is accurately measured and reflected in their ICV score.

AbstractICV is a reputable ICV Consultant in Abu Dhabi, UAE, that provides a broad variety of compliance and financial services to businesses of all sizes. As a recognised ICV certifying body, we provide the best ICV certification services to businesses operating in the UAE. Clients who work with us may expect a guaranteed ICV audit procedure that meets MOIAT requirements.