In-Country Value Certificate (ICV) in UAE

In the competitive business landscape today, it is essential for companies to be unique and showcase their commitment to the local economy. One of the ways to do this in the UAE is by obtaining an ‘In-country value certificate’ (ICV).

ICV certification provides a competitive advantage in the market and also helps businesses build stronger relationships with stakeholders. So, let’s understand about ICV certification by learning about its purpose and how businesses can obtain it.

What is ICV Certification in UAE?

The In-country value certificate in UAE is a programme implemented by the Ministry of Industry and Advanced Technology (MoIAT). Businesses can demonstrate their contribution to the development of the UAE and showcase their commitment to supporting local industries and businesses by obtaining the certification. An ICV certificate in UAE is a measure of the value that a company brings to the local economy through its operations and investments.

The factors that influence businesses to get an ICV certification include:

• Local spending on manufacturing and services
• Use of locally produced goods
• Investments within the UAE
• Hiring and training Emirati employees

Strategic Goals of the In-country Value Program in the UAE

Launched as part of ‘Projects of the 50’, the In-country Value Program aims to diversify the economy, generate employment in the private sector, encourage business setup in UAE to draw in foreign investment, and boost the country's GDP. Obtaining an In-Country Value certificate is a key requirement for companies looking to participate in the program and benefit from its incentives.

The National ICV Program has several goals such as:

• Boosts UAE’s economy and reduces reliance on specific sectors by encouraging businesses to invest and operate locally.
• Encourages technology transfer and knowledge sharing by incentivising companies to get their expertise and technologies to the UAE. This in turn can benefit the local businesses and the workforce.
• Increases employment opportunities for UAE nationals by organising the hiring and training of Emirati citizens.
• Strengthens domestic industries by encouraging companies to source goods and services from local suppliers.
• Benefits not just the investing company, but the entire UAE economy by attracting foreign direct investments into the country.

Who Needs an ICV Certificate in the UAE?

If you are planning a mainland company formation in Dubai, UAE, In-Country Value certificate could help you grow by building a reputation as well as get preference during any bids for government and private contracts. Let us see who can avail an ICV certificate:

• Mandatory for all suppliers and contractors directly working with the Abu Dhabi National Oil Company (ADNOC) and its subsidiaries.
• Businesses aspiring to participate in government tenders and contracts, especially in sectors like oil and gas, construction, transportation, and healthcare.
• Companies looking to establish a reputation for supporting the local economy and creating jobs in the UAE.

What is ICV Score in the UAE?

The In-Country Value certificate score is a metric that measures how much a business contributes to the UAE economy based on its spending in the country. The higher the score, the greater the perceived benefit the company brings to the country.

Understanding Tiers and ICV Scores

Before you get an ‘In-Country Value Certificate’, it is important to understand the different tiers and ICV scores. Let us see the different tiers here:

Tier 1 Suppliers

Tier 1 suppliers are companies directly providing goods or services to government entities or program partners. These companies need to declare their ICV score as it plays a crucial part in the tender evaluation process.

Tier 2 and Below

Obtaining an ICV certificate in Dubai can be beneficial for tier 2 suppliers to improve their competitiveness in tenders. These companies are the ones that are supplying to tier 1 companies.

During government tenders, companies submit bids. The ICV score becomes a factor which is considered alongside other bid criteria like price and technical expertise. A higher ICV score indicates a greater contribution to the UAE’s economy, making the bid more attractive and potentially increasing the chances of winning the tender.

Factors that Influence ICV Scores in UAE

The ICV score in the UAE is a combination of several factors that reflect how businesses contribute to the economy. Here are some of the key contributors to get an In-Country Value Certificate:

Manufactured Goods (for companies with an industrial license)

The cost of goods manufactured within the UAE is a major factor. Local production creates jobs and boosts industrial development.

Third-party spending (for companies without an industrial license)

A third party spending refers to the company’s spending on goods and services procured from local suppliers. The more you prioritise on local spending the higher is your ICV score. Prioritising local vendors strengthens the domestic supply chain.

Emiratisation

Hiring and training Emirati nationals is a significant contributor. The In-Country Value Certificate program aims to empower the local workforce and reduce the dependency on expatriate labour.

Expatriate Contributions

The overall size of the expatriate workforce and their contribution to the economy is also considered.

Investments in the UAE

The net book value of a company’s assets in the UAE such as property, plant, and equipment, is also a major factor. It reflects the company’s long-term investments in the country.

Revenue from Outside the UAE 

Earning revenue through exports demonstrates the company’s contribution to the UAE’s overall economic activity.

How to Get an ICV Certificate in UAE?

Here’s a step-by-step guide for obtaining the In-Country Value (ICV) Certificate, along with how Commitbiz can support you:

• Step 1: In the initial step, Commitbiz can help verify if ICV certification is mandatory for your sector or if you are looking for tenders that put an emphasis on ICV scores. 
• Step 2: In the next step, our experts guide you through the document checklist as per MoIAT guidelines.
• Step 3: We help you connect with a reliable, MoIAT-approved certifying body and manage communications to handle the evaluation and certificate issuance.
• Step 4: Our experts assist in filling out the ICV template based on your company’s data, maximising your ICV score while ensuring full compliance with MoIAT guidelines.
• Step 5: Once the template is filled out, we will submit it along with the required documents to the certifying body. They will initiate ICV score calculation based on the MoIAT criteria.
• Step 6: Upon successful evaluation, the certifying body will issue your official ICV Certificate in Dubai. This typically takes a few weeks.

Documents Required to Get an ICV Certificate

To obtain an ICV certificate, you will need to arrange essential documents such as:

• Audited financial statements compliant with International Financial Reporting Standards (IFRS) – not older than 2 years.

• Management accounts for new companies (less than 10 months old) – not older than 9 months.
• Proof of local spending on goods and services procured from UAE suppliers.
• Employee details highlighting the number of Emirati personnel.
• Details on any investments within the UAE (property, plant, equipment).

Benefits of Obtaining an In-Country Value Certificate

Obtaining ICV Certification in the UAE offers several advantages for businesses, especially those looking to expand their operations or participate in government projects. Let us look at them:

Easy to Get Government Tenders

Getting an ICV certificate ensures that you will get a competitive advantage when it comes to tenders in sectors such as oil and gas, construction, transportation, and healthcare. Government projects often prioritise companies having high ICV scores.

Creates Long-Term Partnerships

Getting a strong ICV score can lead to long-term partnerships and collaborations with government entities, major corporations, and other stakeholders in the UAE.

Improved Supply Chain Efficiency

ICV focuses on local sourcing and as such it can help companies optimise their supply chains and potentially reduce costs.

Gain from Potential Financial Incentives

The UAE government is also planning to introduce potential financial incentives like tax breaks or grants for companies with high ICV scores. An In-Country Value Certificate positions you to benefit from such future programs.

Choose Commitbiz to Avail ICV Certificate

Planning to set up your business in the mainland or exploring a business setup in UAE free zones? Aligning with the ICV program can significantly enhance your company’s strategic position and market appeal. Obtaining an In-Country Value certificate enhances your company’s long-term viability in the region. Commitbiz experts can help get your ICV certificate in a hassle-free manner. Contact us today for more information.