The UAE government launched the In-Country Value (ICV) program as a strategic endeavour to boost the country’s economy by encouraging firms to contribute to local growth. The ICV certificate is an important tool for enterprises looking to connect with the UAE’s economic goal and open up new prospects in government and semi-government initiatives.
In this article, we’ll look at the significance of the ICV certificate, its benefits, and how it helps businesses succeed in the UAE’s competitive market.
What Is The ICV Certificate?
ICV Certificate is an official document issued by ADNOC approved ICV Certifying body, that certifies the in-country value contribution of a company operating in the UAE.
The ICV accreditation assesses a company’s contribution to the UAE economy using certain criteria, which include:
- Local Procurement
- Emiratisation (Hiring UAE nationals)
- Investing in Local Industries
- Export Performance
This certification is required for enterprises who want to compete in bids with government and semi-government entities including ADNOC, Etisalat, and Mubadala.
What is the importance of an ICV Certificate in UAE?
1. Increases Competitiveness in Tenders
The ICV score is an important consideration for awarding contracts. Businesses with better ICV scores receive favour in government and semi-government procurement processes, giving the certificate a competitive edge.
2. Shows Commitment to Local Growth
An ICV accreditation demonstrates a company’s commitment to assisting the UAE’s economic diversification and environmental objectives. This commitment helps the company’s reputation and credibility in the local market.
3. Gain Access to Lucrative Opportunities
Businesses that hold an ICV accreditation can bid on high-value projects with the government and semi-government bodies. This creates huge revenue-generating opportunities.
4. Encourages Sustainable Practices
The ICV initiative encourages businesses to embrace sustainable practices, such as hiring Emirati workers and sourcing materials locally, thus promoting long-term economic stability.
5. Supports National Objectives
The UAE government’s objective includes economic diversification, employment development for UAE citizens, and support for local industries. The ICV program directly supports these objectives, making it a key component of the nation’s development plan.
Who Benefits From the ICV Certificate?
1. Government and Semi-governmental Entities
These organisations use the ICV program to ensure their expenditure benefits the UAE economy.
2. Businesses Seeking Contracts
Companies in industries such as oil and gas, construction, manufacturing, and IT benefit greatly from having an ICV accreditation.
3. The UAE Economy
The initiative supports local industries, creates jobs, and lowers dependency on imported goods, all of which contribute to the nation’s overall economic growth.
How Does the ICV Certificate Affect Businesses?
1. Encourages local procurement
Companies are encouraged to source products and services from local suppliers, thereby benefiting the local economy.
2. Promotes Emiratization
Hiring UAE citizens improves a company’s ICV score, which aligns with the government’s goal of expanding opportunities for Emiratis.
3. Encourages Investment in Local Industries
Businesses are encouraged to invest in local manufacturing and services, which helps the UAE’s industrial growth.
4. Promotes Transparency and Accountability
The certification process compels organisations to keep accurate and transparent financial records, thereby encouraging good governance.
How to Get an ICV Certificate?
To get an ICV certificate, organisations must:
- Prepare audited financial statements
- Ensure compliance with UAE regulations
- Engage with an Approved Certifying Body
- Submit financial information to an authorised body for review
- Identify avenues for improving your ICV score, such as expanding local procurement or Emiratisation activities
How AbstractICV Can Support Your ICV Journey
AbstractICV specialises in helping firms navigate the ICV certification procedure.
Our services involve
- Preparing financial data for examination.
- Issuance of ICV Certification
- Identifying techniques for increasing your ICV score.
- Ensuring compliance with UAE regulations.
Our team of professionals assures a smooth certification procedure, allowing you to realise the full potential of the ICV program.
Conclusion
The ICV certificate is more than just a compliance requirement; it is a strategic instrument that allows firms to acquire a competitive advantage, contribute to the UAE’s economic progress, and access lucrative prospects. Companies that participate in the ICV program not only increase their market presence, but also contribute significantly to the nation’s vision of a sustainable and diverse economy.
Ready to get your ICV certificate? Contact AbstractICV today to find out how we can help you achieve ICV and prosper in the UAE’s thriving business environment.