Importance of ICV Score in the Government Tendering Process
The In-Country Valuation (ICV) score measures a company’s economic impact in the UAE. It is assessed by comparing a company’s spending on goods and services produced in the UAE to its investment in the country’s workforce and local manufacturing capabilities. The higher the ICV score, the more the company contributes to the UAE economy.
The ICV score is used as a standard to assess a company’s economic contribution to the UAE and to help the government achieve its economic development goals. Companies with better ICV scores may also receive preferential treatment in government procurement processes, giving them a competitive edge in the market.
To remain competitive in the tender process with companies that evaluate ICV scores, you must receive ICV certification as a supplier of products and services in the UAE and continue to improve your ICV score.
ICV Certificate and ICV Score
ICV accreditation is a formal endorsement by the UAE government of a company’s commitment to supporting the local economy. To be eligible for ICV certification, a company must achieve specific ICV targets based on its size and industry sector.
A company’s ICV score is determined by its compliance with these criteria; a high ICV score implies that the company is making a significant economic contribution to the UAE. Once a company attains the required ICV score, it can request for ICV certification, which is granted by a government-approved certification agency.
Impact of ICV Score in Government Tendering
In the UAE, when bidding on a government contract, companies are frequently asked to present their ICV score as part of the tendering process.
Furthermore, some government tenders may have special ICV requirements that must be met before bidding. For example, a tender may specify that a specific percentage of the goods and services offered must be sourced from the UAE, or that a particular percentage of the workforce be composed of UAE citizens. Companies who meet these conditions and have a high ICV score may have a competitive advantage throughout the tendering process.
Note: Although participation in a tendering process is optional, if you do not have an ICV certificate, you will receive a 0% score on your ICV, which may reduce your chances of winning.
What is a good ICV score?
There is no particular threshold for what constitutes a “good” ICV score in the UAE; nonetheless, a higher ICV score generally suggests a better commitment to local economic development and contribution. The ICV score requirements are usually defined in procurement documents, contract agreements, or particular recommendations issued by relevant government bodies or contact authorities. Meeting the ICV Score criteria is sufficient for acquiring such commercial deals.
Steps for Improving Your ICV Score
Companies will examine both the ICV certificate and your ‘ICV Improvement Plan’ when determining your overall ICV score. As part of your development plan, you explain the steps you will do over a specific time period to improve your total ICV score. Here are some tips for improving your ICV score.
Local Sourcing: Get your goods and services from local sources. This includes obtaining raw materials, subcontracting, and providing any other goods and services required for your business operations. This displays your dedication to helping the local economy.
Hiring UAE Nationals: Recruit UAE nationals for your workforce. This includes hiring Emirati graduates and promoting the growth of local talent through training and mentoring initiatives. This displays your commitment to growing the local workforce.
Invest in the UAE: Invest in the local economy by expanding its manufacturing and service capabilities. This can be accomplished through joint ventures, partnerships, and other investment opportunities that benefit the local economy.
Community Engagement: Get involved in community projects and initiatives that encourage local economic growth. This includes sponsoring community activities, donating to local charity, and taking part in social and environmental efforts.
Technology Transfer: Bring technology and experience to the UAE. This includes sharing your expertise and talents with local firms, universities, and research institutes, as well as working with them to create new goods and services.
How can ICV Auditors help attain ICV Scores?
ICV Auditors play an important role in assisting organisations in the UAE to enhance their ICV score. They assess a company’s ICV strategy, identify gaps, assure regulatory compliance, monitor and report on performance over time, and offer training and development programs to improve internal ICV capabilities.
Partner With The Expert ICV Auditors in UAE And Stay Competitive
Our ICV Auditors, at AbstractICV, can provide valuable counsel, insights, and support to organisations seeking to enhance their ICV score through ICV Certification Services in UAE, allowing them to demonstrate their commitment to the UAE economy and align with the country’s economic development goals.
We can assist you to increase your ICV score and strategy by working directly with you to optimize your Emiratisation goal. Reach to our ICV consultants today!