The National In-Country Value Certification Program.
Most Frequently Asked Questions - FAQ
ICV Most Frequently Asked Questions - FAQ
What is the national In-country value (ICV) certification?
- The ICV program is an assessment and scoring program introduced to support the UAE Ministry of Industry and Advanced Technology (MoIAT) mandate of improving the industrial sector's national productivity and economic sustainability. Hence, boost the contribution of local industries to national GDP while enhancing the role of local companies' function in the country's socio-economic development.
- The certificate evaluates and scores local and international suppliers contribution to the UAE local economy as part of their tender and contract awarding process.
What are the objectives of the ICV program?
The UAE government executed the program to reinforce the UAE's industrial sector development and growth, aiming to contribute to the overall economy. There are five key objectives the ICV program seeks to achieve from it:
- Strategically localizing the supply chains and developing new local industries and services.
- Stimulate and attract foreign investments, diversify the economy, and increase the UAE exports index.
- Creating job opportunities in the private sector.
- Contributing to the national GDP growth.
- Enhancing spending on R&D and advanced technology.
Who is the governing body of the ICV program?
The UAE Ministry of Industry and Advanced Technology (MoIAT) is the sole governing body of the In-country value program. The program is considered one of the core segments of the ministry's strategy, aiming to reinforce the UAE's socio-economic growth.
How will the ICV benefit the manufacturer and business owners?
The program strives to contribute to the growth of local industries and relieve dependence on external imports. This might include future financing incentives that the UAE cabinet is studying to introduce.
The ICV takes as a mechanism looks into the supplier's expenditure on manufacturing, local products & services, investments, hiring and training of nationals and creation of job opportunities within the country. This is to also support local manufacturers and service providers in UAE to redirect the cost of procuring goods and services into the economy.
- For the past three years, ICV program joined suppliers have benefited from the increased demand for their local products and services, in addition to greater opportunities for government contracting.
- Small and medium-sized companies can also accelerate their growth with the ICV program and localize their value-chains.
- The program promotes local companies, introduce their products to the market, and create new high-skilled jobs.
- The ICV also facilitates suppliers with some financial incentives thorugh the Emirates Development Bank.
- The program creartes more opportunities for local suppliers to enter partnerships with foreign companies seeking to benefit from the competitive advantages of a joint supply chain.
- ICV Certificate holders will have a contractual advantage with the partner companies and federal authorities.
When did it all start?
The Abu Dhabi National Oil company ADNOC pioneered the ICV program and launched it to its suppliers in the year 2018; it was a promising scheme designed to achieve:
- Diversification of the Abu Dhabi gross domestic production through increasing local content spending of the local goods and services within the emirate of Abu Dubai.
- The program aimed to drive more Emirati workforce into the private sector and create the right skill set to develop UAE Nationals' abilities.
As a result, localize the supply chain and promote exporting local goods in the longer run. Now, under the UAE Ministry of Industry and Advanced Technology MoIAT.
Some of the worth-mentioning achievements of the program to date are:
- Successfully redirected around AED89 billion into the local economy.
- More than 2,000 job opportunities were created for skilled and qualified UAE nationals in the private sector.
- Five thousand approved locally-based suppliers have eclipsed across multiple sectors.
Why should I get an ICV?
With the ICV certificate, you will benefit from higher demand for your products and services.
Higher contracting opportunities for local government and semi-government entities.
Greater growth of localization of your supply value chains.
More promotion of your business locally.
Benefiting from financial incentives from Emirates Development Bank (EDB).
Increases foreign companies opportunities to enter partnerships from the competitive advantages of a joint supply chain.
The supplier will have a contractual advantage with the partner companies and federal authorities.
Is the ICV mandatory?
Yes, and No! It is important to emphasize that not all businesses in the UAE need to get an ICV certificate.
If you wish to participate in the local or federal government procurements, the ICV certificate is optional. Yet, your score for the ICV evaluation will be gauged as zero (0). So, it is strongly advised to obtain the ICV. This will increase your chances of getting awarded.
On the other hand, having the ICV is one of the requirements that a supplier or a service provider will be requested to provide during the supplier registration process in all of the Abu Dhabi government entities and companies.
Who needs an ICV certificate?
All types of manufacturers, suppliers and service providers intend to do direct or indirect business with the public sector and semi-government entities.
How is the ICV scored or calculated?
The in-country value scores calculations are based on assessing the supplier added-value towards the local economy. These values are measures against the goods or services offered by the company, according to a pre-defined methodology.
What is the ICV evaluation process?
The ICV certificate obtaining process involves verifying your financial statements by a certified body. There are several empanelled certified bodies that you can go to in UAE. When submitted, your documents are verified against a checklist set by the ICV program. Each point has its score that is calculated through a set formula. The total of all these points is your ICV score.
The following points are taken into account when calculating a company's ICV score:
- Manufactured Goods (for suppliers with an industrial license).
- Third-Party Spending (for suppliers with non-industrial licenses).
- Expatriate Contributions.
- Revenue from Outside the UAE
- Emirati HeadCount
- Investment Growth
How can I apply for an ICV certificate?
- Issue audited financial statements for the company/supplier, based on IFRS
- Fill the certificate application form according to recent guidelines & financial statement
- Select authorized certification company to issue the certificate & present its requirements
- Use the certificate according to the guidelines of each applicable authority
What are the pre-requisites for an ICV certificate?
It is required for a company to submit financial statements compiled and audited by the IFRS for the last two fiscal years. These need to be signed by a partner in an Audit firm duly registered with the Ministry of Economics.
The audited financials being submitted cannot be older than two years, starting from the year of the certification. The management accounts for a company that is less than ten months old can be used for ICV certification if it is newly established (less than ten months old). All management accounts must be audited if they are more than nine months old.
For ICV Certification purposes, every firm's trade license is treated as a separate legal entity, even if the ownership structure is identical.
A single ICV Certificate may be granted to a Company with several branches in the same Emirate performing identical activities and having the same ownership.
What is the ICV evaluation process?
Issuance of audited financial statements
Issuing audited financial statements according to International Financial Reporting Standards (IFRS) or using management accounts for modern facilities less than ten months
a) Application form
Fill out the application form for the certificate according to the guidelines.
Choosing one of the awarding bodies for the certification of the program, for evaluation
c) Get the certificate
Receiving the certificate and submitting it to the implementing agencies of the National Added Value Program
d) An evaluation is conducted to examine the company's value-added contribution to the United Arab Emirates in multiple areas. These are inclusive of:
- Local manufacturing
- Procurement of third-party goods and services
- Local investment and it is growth
- Emiratization of workforce
- Expatriate contribution
- Generation of income from outside the UAE.
What is the validity of the ICV Certificate?
The ICV certificate is valid for 14 months starting from when the Audited Financial Statements are issued.
During the ICV certificate's validity, the supplier could receive recertification from the same Certifying Body using the same audited financial statements; nevertheless, the validity of 14 months following issue will not be altered.
How long does processing the engagement takes until I can obtain the certificate?
Typically, the engagement takes 7 to 10 working days to complete. However, the mentioned timeline is estimated based on the assumption that the required information will be made available to the certifying body on a timely basis.
How much will the ICV certificate cost?
The process of obtaining the ICV certificate varies in terms of how much will it cost to secure one. Depending on your selection, the cost will differ from a certifying body to another.
For further details and information, feel free to contact us at our hotline or drop us a message and our representatives will get back to you as soon as possible.