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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