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Updated: Jun 19

Who needs the ICV

The short answer is "NO" While not compulsory, it is highly recommended. As a business owner, if you are planning to participate in public tenders and government RFQs in UAE, then Yes, ICV is compulsory.

This article focuses on two things about the UAE In-country Value Program: Who needs the ICV?, and how do you improve your ICV score?

Businesses registered in the UAE can apply for an ICV Certificate, a credential that can provide them with a significant competitive edge when vying for government contracts. While obtaining an ICV Certificate is not mandatory, it is strongly recommended, particularly for manufacturing companies and suppliers seeking to leverage their ICV score to secure lucrative public tenders. But is the ICV truly beneficial for every business, or are there specific sectors and circumstances where it holds greater relevance?

The National In-Country Value (ICV) Program, launched in the UAE, serves as a pivotal initiative to enhance economic performance and support local industries by channelling a larger proportion of public spending into the national economy. At its core, the ICV Program encourages businesses to increase their contributions to the local economy by fostering the growth of indigenous industries, creating employment opportunities, and stimulating economic diversification.

One of the primary objectives of the ICV Program is to incentivize businesses to prioritize local sourcing, manufacturing, and employment practices. By doing so, companies can elevate their ICV scores, thereby enhancing their eligibility for government contracts and procurement opportunities. The ICV score provides a comprehensive measure of a company's contribution to the UAE's economic development by evaluating various factors such as local spending, Emiratization, and investment in technology and innovation.

ICV for manufacturing companies

For manufacturing companies and suppliers, the ICV Certificate holds particular significance. These entities often have a substantial footprint in terms of procurement, production, and employment, making them well-positioned to capitalize on the benefits offered by the ICV Program. By optimizing their supply chains, investing in local talent, and adopting innovative technologies, manufacturing firms can bolster their ICV scores and enhance their competitiveness in the marketplace.

Moreover, the ICV Program is crucial in promoting sustainability and environmental stewardship within the UAE's business landscape. Companies prioritizing environmentally friendly practices, such as reducing carbon emissions and minimizing waste generation, can earn additional points for their ICV scores. This aligns with global sustainability objectives and positions businesses as responsible corporate citizens committed to preserving the environment for future generations.

However, while the ICV Program offers numerous advantages for businesses operating in the UAE, its relevance may vary depending on the nature of the industry and the company's specific circumstances. For service-oriented businesses with minimal procurement and manufacturing activities, the direct impact of the ICV Program may need to be more pronounced. Nevertheless, such companies can still benefit indirectly by partnering with ICV-compliant suppliers and demonstrating their commitment to supporting local industries.

In conclusion, while the ICV Certificate holds undeniable value for businesses seeking to enhance their competitiveness in the UAE market, its relevance may differ across various industries and organizational contexts. Manufacturing companies and suppliers, in particular, stand to gain substantially from optimizing their ICV scores through strategic investments in local sourcing, Emiratization, and sustainable practices. By aligning with the objectives of the ICV Program, businesses can not only unlock new growth opportunities but also contribute to the sustainable development of the UAE's economy.

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ICV Auditor

At Assist Plus, striving for thorough business excellence is imperative for companies that advance local and international economic progress. Our all-encompassing methodology toward business excellence has empowered hundreds of companies across the UAE to reach their objectives and establish themselves as formidable contenders in the market.

By teaming up with us, companies can elevate their business standing, inspire investor trust, and foster economic expansion. Opt for Assist Plus for your ICV evaluation today, and embark on the initial phase toward comprehensive business excellence.

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