Everything You Need To Know About ICV Certificate In UAE
Everything You Need To Know About ICV Certificate In UAE
Businesses must stand out from the competition and demonstrate their dedication to the local economy in the cutthroat business world of today. Getting an ICV (In-Country Value) accreditation in Dubai is one approach to accomplish this.
In Dubai, United Arab Emirates, an organization’s ICV certificate serves as a barometer for the value that it adds to the local economy through its activities and investments. Firms can exhibit their support for local firms and industries as well as their contribution to the UAE’s development by earning ICV certification.
What does the UAE's ICV Certification mean?
To assess a company’s economic contribution to the United Arab Emirates, the Ministry of Industry and Advanced Technology (MoIAT) established the ICV (of-Country Value) Certification program. It essentially measures how much a company’s operations benefit the United Arab Emirates.
The value that a business generates in the United Arab Emirates is known as In-Country Value (ICV). This encompasses elements such as:
• Local production and service expenditures
• Using products made locally
• Investing in the United Arab Emirates
•Employing and educating Emirati workers
Importance of the ICV Certification
Although obtaining an ICV certificate is not required, there are some advantages to doing so:
- Increases your chances of landing government contracts, giving you a competitive edge.
- Companies with high ICV rankings attract buyers, particularly government purchasers.
- Cost-saving potential: In line with national procurement objectives, ICV certification may result in tax benefits.
Who in the UAE Requires an ICV Certificate?
In the UAE, ICV certification is not required for all companies, although it is strongly advised for certain industries and circumstances.
It is required of all vendors and contractors who deal directly with the Abu Dhabi National Oil Company (ADNOC) and its affiliates.
Businesses looking to bid on government contracts and tenders are strongly encouraged to do so, particularly those in industries like construction, oil and gas, healthcare, and transportation.
Businesses hoping to build a name for themselves in the UAE by fostering job growth and the local economy.
ICV Certificate: How Can I Get One in the UAE?
1. Verify Your Eligibility
Verify whether ICV Certification is necessary for your industry or whether you wish to submit an application for a tender that gives priority to ICV scores. It is frequently recommended for usage by companies in the oil and gas, construction, government contracting, transportation, and healthcare sectors.
2. Get the necessary paperwork ready
Gather the required paperwork as instructed by MoIAT, which could include:
audited financial records that are no older than two years and that comply with International Financial Reporting Standards (IFRS).
Startups (those under 10 months old) and those under 9 months old are taken into consideration by management.
Evidence of local expenditure on products and services purchased from UAE vendors.
Employee information that shows how many employees are Emirati.
Information about any property, plant, or equipment investments made in the United Arab Emirates.
3. Pick a Certifying Body for ICV
Choose an ICV certifying agency that has received MoIAT approval. The evaluation and certificate distribution will fall under their purview.
4. Fill out the ICV form
Download the ICV Template from the MoIAT website, then fill it out with your company’s details and the guidelines. Verify that the figures correspond to those on your financial statements.
5. Send for Review
Together with the required supporting papers, submit the filled-out ICV template to the assigned certifying body. They will assess your company’s ICV score using the MoIAT criteria.
6. ICV Certificate Issuance
After a successful evaluation, the certifying organization will issue your valid ICV Certificate in Dubai. This typically takes a few weeks.
ICV Audits
During an ICV audit, a professional auditor reviews a company’s paperwork and confirms that it conforms with the ICV program. An integral part of the ICV certificate procedure is the audit.
• Demonstrates your commitment to the UAE’s long-term growth and Emiratization.
• Assists in discovering weaknesses in the ways your business promotes regional economic development.
• Verifies your adherence to the tender requirements set forth by ADNOC and other organizations.
• Promotes internal enhancements via improved monitoring and reporting
The ICV Audit Process: How Does It Operate?
- Define the scope of the audit: Think about the areas of your business that will be looked at. By doing this, you can make sure the audit is focused and aligned with the ICV program’s goals.
- Compile Information: The auditor compiles the required paperwork. This could include vendor invoices, personnel information, and financial records.
- Examine the Data: To determine how your operations affect the UAE economy, a combination of data and strategy are examined.
- Determine Your ICV Score: The auditor assigns a percentage-based score that reflects your local value-add using a predetermined methodology.
- Create the Audit Report: Every discovery is recorded and included in an official report.
