The UAE is really tackling diversification and sustainability of their economy. And something really important to their strategy and what they call “In Country Value” is now right up at the top. At the very core of this program is the ICV certification, a robust tool set with the specific objective of enhancing local business involvement, accelerating Emiratization, and stimulating investment within the country.
When it comes to doing business with big government and semi-government agencies in Abu Dhabi and the whole UAE, understanding and acquiring ICV certification is not just advantageous – it’s mandatory.
What Is ICV Certification?
The ICV certificate UAE is awarded to companies that measure and report their contribution to the UAE economy according to certain criteria. These criteria are:
- Goods produced or services offered within the UAE
- Investment in local assets
- Employment and development of UAE nationals
- Retention of revenue within the country
Initially launched by ADNOC, the In-Country Value certificate program has since been adopted in various sectors and organizations under the umbrella of the Ministry of Industry and Advanced Technology (MoIAT). It has become a standardized condition for suppliers to the government through tenders.
Why Is The ICV Certificate Important?
The UAE Vision 2030 revolves around economic growth fueled by local capacity development. Along with this big picture vision, the Innovative Cluster Ventures (ICV) programme shines by actively encouraging companies to deepen their connection to the local community; they do that either by hiring local workers directly, sourcing parts locally, or pouring resources into local investments.
The following are the reasons why ICV certification has become ever more crucial:
- Improved Chances in Government Contracts: Public institutions prefer companies that have higher ICV ratings when offering contracts.
- Competitive Advantage: ICV-certified companies tend to excel over competitors during the evaluation phases of procurement.
- Brand Reputation: Being ICV-certified demonstrates your commitment to national objectives and boosts your image among stakeholders.
- Economic Contribution: ICV-certified companies directly contribute to empowering the UAE’s economic growth, employment, and industrial development.
Who Needs An ICV Certificate?
If your business provides goods or services to government or semi-government organizations, especially in Abu Dhabi or through national industrial partners, then obtaining an ICV certificate in Abu Dhabi or other Emirates is essential. Companies from different industries, such as oil and gas, manufacturing, construction, IT, and professional services, now come under the ICV program.
Companies that are not already working with the government right now are also strongly recommended to enter into certification. Getting that IC certification really allows them to get new contracts and opportunities as well down the road.
How Is The ICV Score Calculated?
Your firm’s ICV score is determined from financial and operational information provided through audited financial statements and an ICV template. The main elements are:
- Local Procurement Spend
- Investment in UAE-based Assets
- Wages Paid to Emiratis
- Revenue Generated in the UAE
- Training and Development of UAE Nationals
Note that the ICV score is dynamic. It needs serious revising each year and highlights performance results for the most recent fiscal year. Firms need to hire an approved certifying body to evaluate and grant the ICV certificate UAE.
Steps To Obtain An ICV Certificate
Navigating through getting this value certificate abroad means following a set of normal procedures:
- Preparation of Financial Statements: When it comes to preparing financial statements, it’s really important to have recent audited results. Those statements should be under IFRS (International Financial Reporting Standards) and they should reflect things that happened in the last fiscal year at most.
- Completion of the ICV Template: The regular ICV template should be completed correctly with operational and financial information.
- Engagement with a Certifying Body: Have your documentation submitted to an MoIAT-approved certifying body for examination.
- ICV Assessment and Issuance: Once your data passes the validation muster, the official ICV certificate will be yours. It will be good to have it for 14 months.
We at ZS Chartered Accountants Consultant assist companies through the process of ICV certification—preparation of data to interaction with certifying authorities—to make the process smooth and compliant.
Common Challenges And How To Overcome Them
Most companies, particularly SMEs, experience difficulties at the time of certification. These are:
- Incomplete or non-compliant financial statements
- Challenges in interpreting the ICV template
- Underreporting because of a lack of tracking mechanisms internally
It’s important to work with people who know the details of this ICV model because they can help you score high in a very smart and ethical way.
ICV As A Long-Term Business Strategy
Beyond just ticking a box, getting certified under ICV thinking can really be viewed as something much more strategic. It’s inviting companies to put even more of their investment into Dubai, to team up and partner locally and work on sustainable ways of thriving. This long-term vision not only improves procurement opportunities but also positions your business within the country’s industrial vision.
Final Thoughts
The ICV certificate UAE is not only a regulatory tick box—it’s a symbol of dedication to the country’s development. More and more companies are using ICV evaluation criteria, and as they do, having certification becomes super distinguishable in the marketplace. trzymać.
Whether you are renewing your ICV certificate or applying for the first time, proactive planning and professional advice are critical. The future is for companies that think locally, act responsibly, and give back meaningfully to the UAE economy.
For professional advice and customized ICV strategies, our experts at ZS Chartered Accountants Consultant are here to assist.
