The Impact of ICV Certification on the Local Economy and Job Market in the UAE

The Impact of ICV Certification on the Local Economy and Job Market in the UAE

by ICV Certificate

The In-Country Value (ICV) program has emerged as a pivotal force in shaping the economic landscape of the United Arab Emirates (UAE). Designed to promote economic diversification, enhance local industries, and boost Emiratization, ICV certification has become increasingly significant for businesses operating in the region. 

The ICV program aims to achieve several critical goals: 

  • Economic Diversification: By encouraging investment in non-oil sectors, the UAE seeks to reduce its dependence on oil revenues and create a more resilient economy. 
  • Emiratization: The program prioritizes the employment of UAE nationals, fostering a skilled local workforce. 
  • Sustainable Growth: ICV certification contributes to sustainable economic growth by nurturing local businesses and industries. 

The Positive Impact on the Local Economy 

The ICV program acts as a catalyst for positive change in the UAE’s economy in several ways: 

Increased Investment in Local Resources 

Companies striving for ICV compliance need to prioritize sourcing materials, goods, and services from within the UAE. This injects money directly into the local economy, stimulating growth in domestic industries and businesses, especially Small and Medium Enterprises (SMEs). 

Growth of Domestic Industries and Services 

As the demand for locally sourced goods and services rises, existing domestic companies are incentivized to expand and innovate. This fosters the creation of new businesses catering to the needs of the ICV program, further diversifying the UAE’s economic landscape and reducing reliance on foreign imports. 

Reduced Reliance on Foreign Imports 

By encouraging local procurement, ICV certification helps the UAE lessen its dependence on imported goods. This keeps more money circulating within the country, boosting the Gross Domestic Product (GDP) and promoting a more self-sufficient economy. 

Increased Local Spending 

When companies invest in local resources and create jobs, it leads to increased salaries and disposable income for UAE residents. This fuels local spending, stimulates further economic activity across various sectors, and ultimately contributes to a more robust and resilient economy. 

The ICV program fosters a domino effect, starting with increased investment in local resources. This strengthens domestic industries and services, leading to a wider range of locally produced goods and services available.  In turn, this reduces reliance on foreign imports, keeping more money circulating within the UAE’s economy. The increased economic activity also fuels local spending by residents, creating a positive feedback loop that strengthens the overall economy and fosters a more diversified and self-sustaining economic landscape for the UAE. 

Boosting the Job Market with ICV Certification 

The ICV program acts as a powerful driver for job creation and development in the UAE’s job market through several key mechanisms: 

New Job Opportunities 

As companies strive to achieve ICV compliance, they  often need to expand their operations and workforce. This creates new job opportunities across various sectors, from manufacturing and logistics to engineering and administration. These jobs cater to both skilled and unskilled labor, offering a wider range of employment possibilities for UAE residents. 

Increased Demand for Emirati Workforce 

One of the core objectives of the ICV program is “Emiratization,” which aims to increase the number of Emirati citizens employed in the private sector. As companies prioritize local resources, there’s a growing demand for skilled Emirati professionals to fill these positions. This incentivizes investment in vocational training programs and upskilling initiatives to equip Emiratis with the necessary skills to thrive in the job market. 

Improved Working Conditions and Wages 

With a growing demand for talent due to ICV requirements, competition for skilled workers intensifies. This can lead to improved working conditions and potentially higher wages for employees across various sectors. Companies may offer more competitive benefits packages and invest in employee development to attract and retain top talent. 

Focus on Vocational Training 

The ICV program highlights the need for a skilled local workforce. This encourages government and private entities to invest in vocational training programs tailored to the specific needs of the ICV program. These programs equip individuals with the technical skills and knowledge required to secure jobs in high-demand sectors arising from the ICV requirements. 

In essence, the ICV program creates a dynamic environment where companies need to adapt and expand their workforce. This translates to new job opportunities for both skilled and unskilled workers, with a specific emphasis on Emirati employment. The increased competition for talent also fosters improved working conditions and potentially higher wages. Additionally, the focus on vocational training ensures a skilled workforce  ready to meet the demands of the evolving ICV-driven economy. 

Challenges and Considerations of ICV Certification 

While the ICV program offers significant benefits, there are also some challenges and considerations for businesses to navigate: 

  • Complexity of the Program: The ICV certification process can be complex, with  different requirements for various industries and company structures. Businesses may require guidance from consultants or advisors to ensure they understand and comply with all the regulations. 
  • Initial Investment Costs:  Meeting ICV requirements may involve upfront investments in areas like  local sourcing, employee training, or establishing new partnerships. Companies with limited budgets may find these initial costs challenging, especially if the  long-term return on investment isn’t immediately apparent. 
  • Availability of Local Resources: Depending on the specific industry and  required goods/services, companies might face limitations in finding qualified  local suppliers or skilled Emirati workforce. This can create hurdles in  achieving optimal ICV scores. 
  • Transparency and Consistency:  For the program to be truly effective, ensuring transparency  and consistent implementation across all government entities is crucial. Businesses  may  encounter variations in interpretation or application of the ICV  regulations  depending on the specific department or agency they’re dealing with. 

The Future of ICV in the UAE: A Catalyst for Continued Growth 

The ICV program has already demonstrably impacted the UAE’s economy and job market. Looking ahead, ICV is poised to play a vital role in the nation’s long-term economic success: 

Sustainable Economic Growth:  By fostering a more self-sufficient and diversified economy, ICV certification can help the UAE  lessen its reliance on volatile oil prices.  A focus on local innovation and  entrepreneurship can lead to the development of new industries and  technologies, further strengthening the UAE’s economic standing on the global  stage. 

Attracting Foreign Investment:  The ICV program demonstrates the  UAE’s commitment to developing a robust and sustainable domestic  economy. This can attract foreign investors seeking a stable and  collaborative  business environment.  Companies with ICV certification may also find  themselves  more attractive partners for international collaborations. 

Fostering Innovation:   As companies strive to meet ICV requirements, they  are incentivized  to seek innovative solutions for local sourcing,  manufacturing,  and  workforce development. This fosters a culture of innovation within  UAE  businesses, leading to the development of new technologies and  processes  that can benefit the entire economy. 

Building a Knowledge-Based Economy:  The emphasis on Emiratization  within the  ICV program encourages investment in education and training  programs.  This  helps create a more skilled and knowledgeable workforce, propelling the  UAE  towards a knowledge-based economy that thrives on innovation and  intellectual  capital. 

Conclusion: Building a Brighter Economic Future for the UAE 

The ICV program has emerged as a powerful driver of positive change in the UAE’s economic landscape. By incentivizing investment in local resources, businesses, and talent, ICV certification fosters a more diversified and self-sufficient economy. This translates to a wider range of job opportunities, improved working conditions, and a more robust and resilient economic environment. 

Looking ahead, ICV presents a unique opportunity for the UAE to achieve long-term economic success. The program’s focus on sustainability, innovation, and Emiratization paves the way for a knowledge-based economy that thrives on collaboration and intellectual capital. By attracting foreign investment and fostering a culture of innovation, ICV can propel the UAE towards a future of continued growth and prosperity. 

However, obtaining ICV certification can be intricate and time-consuming, especially for companies unfamiliar with the program. Therefore, it is highly recommended that companies aspiring to achieve ICV certification collaborate with seasoned ICV certificate consultants within the UAE. By doing so, they can navigate the process efficiently, meet the certification requirements, and underscore their dedication to sustainable business practices in the UAE. 

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What an In-Country Value (ICV) certificate is and Why your company needs it for business

by with No Comment ICV Certificate

What an In-Country Value (ICV) certificate?

The Abu Dhabi National Oil Company (Adnoc) launched an In-Country Value (ICV) program in 2018 with a procurement focus to promote GDP diversification, emiratization, and strategic considerations.

Later, earlier this year, the Abu Dhabi Department of Economic Development (ADDED) partnered with Adnoc to introduce the idea of a unified ICV certification process for suppliers in the United Arab Emirates, in keeping with the financial objectives of the government accelerator program, Ghadan 21 and in response to the program’s success.

Aldar Properties, Abu Dhabi Ports, Adnoc, and ADDED are now known to as Participating Entities after they all entered the unified ICV certification procedure last year. In order to collaborate on the program, Adnoc has also inked agreements with Emirates Nuclear Energy Corporation (ENEC) and Mubadala Investment Company. Soon, more entities should sign up for the ICV certification platform.

The goal of the unified ICV program is to combine the ICV certification procedure into a single ICV certificate that may be utilized by any supplier, primary or secondary, that plans to participate in the procurement process of the Participating Entities.

Why your company needs it for business?

Improving private sector participation, facilitating GDP diversification, and localizing essential supply chain components are the primary goals of the ICV Certificate. To put it simply, “In-Country Value is the amount that a supplier spends that stays in the UAE or contributes to the UAE, as stated by Peeyush Joardar, Partner, ICV & Audit at MBG Corporate Services, one of the authorized certifying bodies in the UAE.”

By December 2019, more than 1,500 Emiratis were employed in the private sector thanks to the Adnoc ICV program, which has reinvested more than Dh44 billion ($12 billion) in the UAE economy. In the UAE, there are over 3,000 businesses with ICV certification.

Among the areas taken into account for ICV certification are manufactured goods, investment, Emiratization, expatriate contribution, revenue from sources outside the United Arab Emirates, and increase in investment. As a result, the ICV program has developed a new business line that must be supplied from the United Arab Emirates.

Additionally beneficial to businesses, the ICV certificate gives them the option to use their first right of refusal throughout the tendering process. Companies without the ICV certificate will still be able to compete on Adnoc Group projects, but they will not have the advantage over those with a higher ICV score because their ICV score will be 0 in the bid review process.

We have a team of experts with a track record of issuing ICV certificates across multiple industries, and we can help you obtain your unified ICV certificate within a short turnaround time,” he claims. It is our responsibility to first help clients comprehend the ICV program and identify the variables that influence the ICV score. We then offer ideas for actions to raise the score, such as streamlining organizational procedures, combining legal entities, organizing investments, optimizing the supply chain, and reducing the number of employees.

The company’s audited financial statements prepared in accordance with International Financial Reporting Standards serve as the sole foundation for ICV certification (IFRS). It is recommended that financial statements be no more than two years from the year of certification. Furthermore, even though ownership of a group of licenses is shared, each license inside the group is regarded as a separate legal entity for businesses with several entities.

However, one combined ICV certificate is allowed for the company in that emirate if it has multiple branches in the same emirate with identical activities and ownership listed on the licences,” he clarifies.

Here are the steps on how to obtain an ICV certification:

Issue audited financial statements

The first step is to issue audited financial statements on your company. These statements have to be prepared in accordance with International Financial Reporting Standards (IFRS) and have to no longer be older than two years from the certifying 12 months. The statements must additionally be signed through an authorized auditor from the UAE Ministry of Economy.

Complete the ICV certificate utility form

Once you have got your audited financial statements, you can whole the ICV certificates software shape. The form may be downloaded from the website of the Ministry of Industry and Advanced Technology (MoIAT).

Submit the application form and supporting files

Once you have got finished the software shape, you should submit it to the MoIAT along with the following assisting files:

  • A copy of your company’s change license
  • A reproduction of your organization’s registration certificates
  • A reproduction of your enterprise’s articles of affiliation
  • A copy of your enterprise’s memorandum of know-how
  • A replica of your organization’s organizational chart
  • A reproduction of your organisation’s worker list
  • A replica of your business enterprise’s education and improvement packages
  • A reproduction of your organization’s network engagement initiatives
  • A replica of your organization’s environmental sustainability regulations

Pay the utility fee. The software fee for an ICV certificate is AED 1,000. The price may be paid online or via a financial institution transfer.

Attend the ICV certification evaluation. Once your application has been reviewed, you may be invited to wait an ICV certification assessment. The evaluation may be conducted through a group of MoIAT assessors, who will evaluation your agency’s compliance with the ICV criteria.

Receive your ICV certificate. If your employer is a success within the ICV certification evaluation, you’ll be issued an ICV certificate. The certificates may be legitimate for two years.

How we help you get ICV Certificate for Business?

The ICV certificate, once obtained, is good for 14 months from the date the audited financial accounts are released. If the supplier so desires, he may recertify using the same audited financial statements at any point during the certificate’s validity; however, the initial 14-month validity period will not be extended.

To assist and set up ICV certification, KGRN Services has established specialized internal teams in Abu Dhabi, Dubai, and Sharjah. KGRN Services was founded in 2008 and offers tactics and solutions that promote corporate change. The company operates in India, Australia, UK, UAE and the Middle East, with its headquarters located in Dubai and over 150 employees at its UAE office. It is located in six countries and has sixteen global offices.

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How to Get an ICV Certificate in Dubai?

by with No Comment ICV Certificate

A growing number of UAE-based companies across a variety of industries are aiming to get their hands on an ICV Certificate. Their dedication to In-Country Value (ICV), a government program in the United Arab Emirates aimed at increasing the country’s GDP through supporting domestic investment, procurement, and job creation, is demonstrated by this certificate.

Enumerate the components of an ICV certificate.

In the United Arab Emirates, the MoIAT (Ministry of Industry and Advanced Technology) issues certificates such as the ICV. As a measure of a company’s impact on the UAE economy, it verifies the ICV level the business has reached. Several criteria contribute to the ICV score, such as domestic value-added activities, employment of UAE nationals, local investment, and procurement from within the country.

Acquiring an ICV Certificate requires completing multiple steps:

Step 1

Signing up with the MoIAT: Registering with the UAE’s Ministry of Industry and Advanced Technology (MoIAT) is the initial step. In order to do this, one must register for an account on the MoIAT website and submit the required business data, such as financial statements, contact information, and paperwork for company registration.

Step 2

Self-Evaluation: Companies self-evaluate after registering to find out their ICV score. This entails assessing their economic contributions to the UAE using a range of standards, such as employment of UAE citizens, local investment, procurement, and value-added activities conducted there.

Step 3

Designating an Independent Examiner: To confirm the company’s assessment of itself and guarantee the veracity of the reported ICV score, an independent auditor is assigned. To support the self-assessment claims, the auditor looks over the company’s documentation, speaks with key personnel, and looks through pertinent documents.

Step 4

Issuance of Audit Report and ICV Certificate: After the audit is finished, the auditor sends the MoIAT an audit report. The organization receives an ICV Certificate from the MoIAT if the audit findings validate the self-assessment. After a successful reevaluation, the ICV Certificate can be renewed for an additional two years.

Benefits of Obtaining an ICV Certificate

ICV Consultant Dubai
  • Increased Chances of Winning Government Tenders: Many government projects and initiatives in Dubai prioritize companies with ICV certification. This essentially acts as a stamp of approval, demonstrating your commitment to supporting the local economy. When bids are evaluated, companies with an ICV certificate often receive a significant advantage.
  • Potential for Tax Breaks and Other Incentives: Government entities in Dubai may offer tax breaks, subsidies, or other financial incentives to companies with a strong ICV score. These incentives can translate to significant cost savings and improved profitability for your business.
  • Demonstrates Commitment to the Local Economy: Holding an ICV certificate showcases your company’s dedication to building a strong local presence. This can be particularly attractive to potential clients and partners who value companies that contribute positively to the UAE’s economic development.
  • Enhanced Credibility and Reputation: The ICV certification process involves a rigorous assessment. By achieving certification, you demonstrate your company’s adherence to best practices and commitment to ethical business conduct. This can significantly boost your overall credibility and reputation in the marketplace.
  • Improved Access to Local Resources: An ICV certificate can open doors to new opportunities within the local supply chain. You may find it easier to connect with qualified local suppliers and talent, fostering stronger business relationships within the UAE.
  • Long-Term Sustainability: The ICV program encourages businesses to invest in local resources and contribute to the development of the UAE’s workforce. This focus on long-term sustainability can benefit your company by creating a more stable and reliable operating environment.

Extra Things to Think About:

ICV Certificate Templates: Businesses are required to appropriately record their ICV-related activities and financial data on the ICV Certificate forms that the MoIAT has given.

Supporting Documentation: Businesses should keep thorough records of purchase orders, invoices, employment contracts, and other pertinent information to back up their self-assessment claims.

Time: the date of application, the ICV certification procedure normally takes between 30 and 45 days.

Fees: Upon submission of the application, the MoIAT will receive a charge that is related to the ICV certification process.

Getting an ICV Certificate in Dubai provides companies with a number of advantages, such as:

  • Enhanced Tender Submissions: Businesses that hold an ICV Certificate have an edge over competitors when submitting tenders for government projects and contracts.
  • Enhanced Credibility and Reputation: An ICV Certificate proves a company’s dedication to the UAE economy, which boosts its standing with the government, potential partners, and the business community at large.
  • Access to Exclusive perks: The UAE government may provide companies with an ICV Certificate with special perks and incentives.

In-Country Value and the development of a varied and sustainable economy in the United Arab Emirates are greatly aided by ICV Certificate Dubai. The ICV initiative links companies with the national development objectives of the United Arab Emirates by promoting local hiring, investment, and procurement.

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Why UAE Business Needs an ICV Certificate?

by with No Comment ICV Certificate

Maintaining an ICV Score and obtaining ICV certification are requirements for organisations operating in the UAE. After the UAE implemented various economic programmes that benefited small, medium, and large firms through tenders and bids, obtaining ICV certification became even more important. ICV accreditation serves as a motivator for businesses that are interested in bidding on contracts with organisations like ADNOC, Aldar, Emirates Steel, etc.

The approach is based on percentages rather than overall cost.

The calculation of the ICV score is based on percentage contribution rather than overall spending. When compared to tier 1 companies, the possibility for tier 2 and tier 3 companies is roughly comparable in this instance. The bidding process is open to all certified businesses.

Get up to 40% more leverage when placing your bids.

The ICV score column for companies without the certificate will be considered “zero” for the purposes of the bidding procedure. In contrast, a company that has earned ICV Certification will be given up to 40% more weight in the examination of the bids from the commercial perspective. It is a strategic objective to foster the economy’s future growth so that firms can thrive in an environment of fair competition and offer opportunities to both local UAE citizens and foreigners.

Participate in the MoIAT database.

become a part of the vendor and supplier database for various needs. Not all projects will be made available for bids. A database of ICV-certified vendors will be created by the Ministry of Industry and Advanced Technology in order to offer them preference on a number of internal purchases made by participating businesses.

Request a price quote from the certification organisations.

For the ICV certification, there are about 21 certifying organisations. Therefore, you can shortlist the agencies and request quotes if you’re seeking for a trustworthy and reasonably priced ICV Certifying company. Similar to this, you must finish and have your financial statements audited before applying for the ICV Certification. One of the most reputable and innovative providers of audit services in Dubai and the UAE is ICV Certificate. Get an audit completed in accordance with the ICV guidelines to raise your ICV score.

ICV Certification is a digital, online procedure.

The recently released digital platform enables customers to finish the certification and application processes. Businesses can check the status of their applications online and get ICV Certification in two weeks. Through its AI interface, the new platform assists consumers by using blockchain technology. The platform’s goal is to collect high-quality data from users, making it simpler for applicants to submit their applications and be granted the ICV Certification.

Participate in the booming economy of the UAE

The ICV certification’s five characteristics are as follows:
  • Bonus for Emirati Head Count, Investment Growth, and Outside the UAE Revenue Generated from Investment Emiratization Expat Hiring.
  • The ICV Certification enables businesses to save expenses and use regional suppliers for their procurement needs. It seeks to support regional businesses and participate in the expanding economy. Businesses can perform better on the ICV Certification by employing locally rather than relying on organizations from other countries to fulfil their procurement needs.
  • an increase in domestic demand for regional goods and services: Companies who want to improve their ICV score must increase their hiring, investment, and even procurement in the UAE. The ICV score may be higher the more locally focused the business is. These are additional elements that foreign businesses that want an ICV Certificate must take into account. Going local is in line with the plan to expand the economy and even quadruple it over the next few years.
  • In-Country Value Certificate includes a number of industries. Once ICV Certified, you could submit bids for businesses in a wide range of industries, including real estate, telecommunications, heavy machinery, and more. One advantage of obtaining ICV Certification is that the certificate can be used in a variety of sectors rather than just one.
  • By 2031, it hopes to add 120,000 new employments. The more businesses that localise in the UAE, the better it is for local employment. The UAE government is particularly interested in businesses taking advantage of the UAE and offering ample chances for talent within the UAE. By 2031, ICV Certification hopes to add 120,000 new employments. The ICV certification takes the hiring procedure for locals and foreigners in the UAE into account, and this directly influences the ICV Score.

UAE ICV Certificate

ICV Certificate UAE, a certified audit firm in the UAE, exhorts businesses to obtain ICV Certification right now! We will assist you in comprehending the ICV procedure and the factors influencing the ICV Score. Implicitly, the legal procedure, organisational reorganisation, examining the procurement process, and basically assessing the financials in accordance with the ICV norms can all improve the ICV Score. Therefore, get in touch with us right away, and we’ll be glad to help!