Securing an ICV certificate in Sharjah signifies your company’s commitment to the local economy and opens up doors to numerous opportunities. Here’s a comprehensive guide to navigate the process:
What is ICV Certificate?
ICV certificates, or In-Country Value certificates, are official documents issued by governments or other authorized bodies to recognize and certify a company’s contribution to the local economy. They serve as valuable tools for promoting economic growth and development by encouraging companies to source goods and services locally, hire local employees, and invest in local communities.
In-Country Value (ICV) measures a company’s contribution to the local economy within the UAE. It considers various factors, including:
- Local Procurement: The percentage of goods and services sourced from local suppliers.
- Emiratization: The percentage of Emirati nationals employed by the company.
- Local Value Addition: The amount of value added to products and services through local production activities.
- Investments: The value of assets invested in the UAE.
The Impact of ICV on the UAE Economy
Thanks to the ICV initiative, the UAE has been better prepared to deal with the COVID-19 pandemic. The initiative has boosted the Emirate’s gross domestic product (GDP), accelerated the creation of new jobs, and localized key components of the Emirate’s supply chains. Although many economies have been affected by COVID-19, all of these measures have helped to lessen the impact of the virus.
Members of the program are also expected to actively seek out opportunities to collaborate with other groups. As a result, both the demand for locally produced goods and services and the number of available jobs will rise.
By examining the numbers, it is clear that the ICV initiative has been helping the economy thus far. More than AED 44 billion ($12 billion) has been reintroduced into the Emirate economy since the program’s implementation in January of 2018 thanks in large part to localization. There are now more opportunities for employment in the private sector as well. Thanks to the ICV program, the private sector of the UAE has added almost 1,500 new employment.
So far, ENEC has awarded contracts to more than 2,000 local enterprises. The sum total of these contracts is estimated to be around 17.5 billion AED. The ADNOC ICV program has so far recognized four thousand vendors from a wide range of sectors. Furthermore, two substantial contracts totaling around $245 million were awarded by ADNOC. Although local enterprises were not granted these contracts, the ICV program will guarantee that over 50% of their total value will ultimately be reinvested in the UAE economy.
These numbers will only go up in the future as more and more companies adopt the program and work toward uniformity.
Guide to Obtaining Your ICV in the United Arab Emirates
Business in the UAE can become ICV Certified by sending in their ICV score and meeting the ICV Financial requirements set by ADNOC. Businesses might have to change how they do things to meet the requirements of the ICV. For example, they might have to spend more locally, buy from local vendors more often, and promote from within.
It has never been easier to get ICV certification in the UAE than it is with BMS Auditing’s ICV audit and certification services. Still, here are the steps you need to take to get ICV Certification:
Make the financial records public after they’ve been checked carefully.
In the UAE, the main requirement for getting an ICV certification is to show financial papers that have been audited. Companies that have been around for less than 10 months must use management accounts or follow IFRS when making their financial records.
The International Financial Reporting Standards (IFRS) make it possible for all financial reports to be written in the same language. To make its financial reports more reliable and clear, a business must use IFRS if it wants to win over its clients.
Second, finish the ICV exam.
The ICV template is a standard form that is used to find out the ICV score of a company. Companies can use this template to keep track of the things that they buy locally, the money they spend on community services, the Emirati workers they hire, and other things that show how they help the local economy. Businesses must follow the program’s rules when they fill out the ICV form.
Use Form to Evaluate
Taking the template to one of the official certifying bodies in the UAE for review is the last thing that needs to be done to get an ICV approved there. Authorized certifying bodies are separate companies that have been given permission by the ICV program to check and verify businesses that they follow the ICV.
These certification groups have all the tools they need to look over the company’s ICV template and any other information it gives them. After looking over the details given, the certifying organization will do an on-site check to make sure the information is correct.
Get your IVC credential
Get the certificate. This is the last step in getting an ICV certified car in the UAE. The business will get the certificate after the certifying body checks that it follows the program’s rules, which they do by looking at the ICV form and any other paperwork that goes with it.
As a sign of support for the local economy, ADNOC ICV approval can lead to chances like getting better deals on government contracts and bids. Our ADNOC ICV-approved inspectors make it easy to get ICV certification by streamlining the process and giving step-by-step instructions. This saves you time and effort.
Importance of ICV certificate in Sharjah
In Sharjah, an ICV certificate, or In-Country Value certificate, holds significant importance for businesses operating within the emirate. It serves as a tangible testament to a company’s commitment to the local economy and opens doors to numerous benefits and opportunities. Here’s a closer look at why an ICV certificate is crucial for businesses in Sharjah:
Boosting Competitiveness:
- Government contracts and tenders in Sharjah often prioritize companies with a high ICV score. This gives businesses with an ICV certificate a significant competitive advantage.
- Increased competitiveness leads to greater access to valuable projects and contracts, fostering business growth and expansion.
Unlocking Funding Opportunities:
- Sharjah’s government and various institutions offer grants, subsidies, and other financial assistance programs specifically targeted towards companies with a high ICV score.
- This financial support can alleviate operational costs, fund expansion plans, and boost research and development initiatives.
Enhancing Brand Reputation:
- An ICV certificate demonstrates a company’s responsible and ethical business practices, contributing to its reputation as a committed stakeholder in Sharjah’s economic development.
- This positive brand image attracts customers, investors, and partners, further strengthening the company’s position in the market.
Promoting Emiratization and Local Development:
- By prioritizing local procurement, employing Emirati nationals, and investing in local communities, companies with a high ICV score contribute significantly to Sharjah’s economic growth and development.
- This fosters a sense of social responsibility and creates a more diversified and sustainable economy.
Reduced Risk of Doing Business:
- Sharjah’s government policies and regulations often favor companies with a high ICV score. This ensures greater stability and predictability for businesses in the long run.
- By demonstrating a strong local presence, companies can mitigate risks associated with changes in government policies or economic fluctuations.
Conclusion:
Obtaining an ICV certificate in Sharjah is an investment in a company’s future. It signifies a commitment to local economic growth, provides a competitive edge, and unlocks numerous opportunities for success. By actively contributing to the development of Sharjah, companies can secure their position in the market and achieve sustainable long-term growth.
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