ICV certification
In the modern business world, it has become more than an exercise in formalities to align with national priorities—it’s a strategy for growth. The ICV certification (In-Country Value) is the best case for how the UAE is pushing companies to help the local economy while being rewarded with helpful access to government and semi-government contracts.
If you’re running a company in the UA, particularly Abu Dhabi, learning and obtaining the in-country value certificate can unlock doors you hadn’t previously thought possible. In this guide, we’ll guide you through what the ICV certificate is, who requires it, how it’s determined, and how it can help your business.
What Is ICV Certification?
In-Country Value (ICV) certification is included in a nationwide initiative started by ADNOC and subsequently implemented by other government departments, including the Ministry of Industry and Advanced Technology (MoIAT). The aim is straightforward: develop the UAE’s economy by offering preference to those suppliers and contractors who invest more in the local environment.
Your ICV certificate UAE grade depends on various elements, including:
- Local investment (assets in the UAE)
- Emirati workforce contribution
- Revenues spent within the UAE (on suppliers, services, etc.)
- Exports of manufactured goods or services
This score affects your competitiveness in tenders issued by participating organizations like ADNOC, Etihad Rail, and Aldar Properties.
Why Is ICV Certification Important?
ICV certification is not a piece of paper—it’s a competitive edge.
- Access to Lucrative Contracts: Several government and semi-government deals in the UAE are now ICV certificate-requiring to be eligible for bidding.
- Preferred Supplier Status: A higher ICV score often improves your ranking among bidders, even if your financial bid is slightly higher.
- Alignment with National Goals: The UAE’s long-term vision revolves around diversifying the economy and supporting local businesses. Your ICV certification is proof that you’re on board with this mission.
Who Needs An ICV Certificate In Abu Dhabi And Beyond?
If your company does business with organizations such as ADNOC, or if you work in industries like oil & gas, construction, or manufacturing, an ICV certificate in Abu Dhabi is effectively mandatory. But the reach is expanding rapidly to other emirates and industries, so even consultancies and service providers are being encouraged to become certified.
How Is The ICV score calculated?
Your ICV score is calculated by an in-depth audit of your operations and financial practices. Below are the key elements:
- Emirati Workforce Contribution: Salary and number of UAE nationals in your payroll.
- Investment in the UAE: Value of fixed assets such as machinery, equipment, and property.
- Third-Party Spending: Percentage of purchases from UAE-based suppliers.
- Manufacturing Revenue: For manufacturers, it includes goods sold locally and exported.
- Expat Costs and Outsourcing: These generally reduce your score, pushing businesses to localize.
Each category has a specific weightage, and the resulting score is valid for 14 months from the date of issuance.
Steps To Get Your ICV Certificate
Here’s how to get started:
- Prepare Your Audited Financial Statements: Ensure they’re no more than two years old and prepared per IFRS standards.
- Select a MoIAT-Approved Certifying Body: Only MoIAT-approved entities are qualified to issue ICV certificates.
- Submit the Required Forms and Data: Such as workforce data, procurement spending, and assets.
- Go through the ICV Audit: Your documents will be audited and your score tabulated.
- Obtain Your Certificate: Once done, you may use this among all participating units.
Note: If you have multiple legal entities under your business, each will need its own ICV certificate.
Common Challenges And How To Avoid Them
- Old or incorrect financials: These are the most frequent causes of delays. Ensure your financial information is up to date and set out.
- Not considering non-financial aspects: Labor mix and local expenditure have heavy weightings—don’t ignore them.
- Not planning: The ICV process takes time, particularly during peak periods. Begin early, particularly if bidding deadlines are looming.
How We Help At Zs Chartered Accountants Consultant
At ZS Chartered Accountants Consultant, we support businesses across industries to successfully navigate the ICV certification process. From document preparation to audit coordination, we ensure a seamless experience and help maximize your ICV score by identifying areas for improvement and alignment.
Final Thoughts
ICV certification is more than a compliance checkbox; it’s an opportunity to align your business with the UAE’s vision for sustainable economic development. Whether you’re a manufacturer, a contractor, or a service provider, understanding and investing in your ICV certificate UAE can pay dividends in both the short and long term.
The sooner you act, the more firmly your place will be established in a marketplace that increasingly rewards local contribution. If you don’t know where to start, seeking the advice of experts can make the path easier and a whole lot more rewarding.
