Did you know that having a National In-Country Value Certificate (ICV) can help you increase your chances of securing a government contract?
The document evaluates the number of national employees (Expats +Emirati) hired, the amount of materials acquired from other local businesses, and the amount the company invests in the country’s infrastructure and helps improve technological development.
According to the country’s laws, all companies and their subsidiaries that provide supplies to government-owned companies like the Abu Dhabi National Oil Company (ADNOC) must obtain the national ICV certificate UAEThis requirement applies to all government-owned companies operating in different sectors, such as drilling, engineering, and logistics.
Contact certifying firms that help you calculate your company’s national in-country value to get your in-country value certification. The Ministry of Information and Technology (MoIAT) oversees the national ICV certification process.
There are 25 certifying firms working currently that can help you get a national ICV certificate. Adepts offers professional assistance and works with certified auditors that can help you get an authentic and accurately calculated national ICV score.
MoIAT recorded a considerable increase in the number of Emiratis working in private sector companies certified by the program. The number of Emiratis employed in companies holding the “National In-Country Value” certificate by the end of the first half of 2024 reached approximately 19,000, a 40% increase over the first half of 2023.
Since its implementation, the program has resulted in a qualitative increase in the expenditure of major national companies on local procurement and services, reaching AED 48 billion by the end of the first half of 2024.
The program’s growth builds on its earlier successes, where it reached AED 53 billion in end-2022, an increase of 25% over 2021. By end- 2023, this number reached AED 67 billion, with a growth rate of 26% in local spending on products and services among the entities implementing and joining the program. The value of investments by registered suppliers within the country exceeded AED 200 billion in 2023.
The effectiveness of the National In-Country Value ICV UAE program over the last several years has facilitated an increase in private-sector investment and participation in several areas, leading to increased economic durability. Aligning with national strategies like “Operation 300bn” and the UAE’s industrial strategy, ICV Program aims to improve the UAE’s economic and socio economic development, injecting AED178 billion ($49 billion) back into the UAE’s economy by the year 2028.
The certification of ICV UAE also contributes to the growth of the non-oil and gas product-producing region, therefore improving the UAE’s GPD. ADNOC targets local manufacturing of AED90 billion ($24.5 billion) worth of critical industrial products in its procurement pipeline by 2030. Diversification is of primary importance, as it would help to organize a better balance of the economy and make it less dependent on oil rates.
Companies must meet general standards or requirements to receive ICV certification; these requirements have been developed in compliance with the program’s objectives. The government has subdivided these criteria into general conditions and the certification procedure.
Disclaimer: The eligibility criteria for obtaining a national ICV certificate depends on multiple factors beyond the basic requirements listed above. Companies should consult professional advisory entities to determine their specific eligibility and ensure compliance with sector-specific regulations.
Once the company has met the basic eligibility criteria according to its industry, it must follow a set process for obtaining the national ICV Certification.
The first thing a company needs to do when obtaining a national ICV certificate is to prepare its financial statement and get them audited by an independent licensed auditor who is approved by the UAE government and works in accordance with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA). The Audited Financial Statements must not be older than 2 years from the certification year.
The certifying body will review the company’s submitted documents and use the information to calculate the national ICV score. They will also perform an on-site audit to verify the accuracy of the information provided and confirm compliance with national ICV regulations.
To renew your certificate, you will have to submit a new audited financial statements. These statements should reflect the company’s current financial state and any changes in its operations.
The salary paid to company owners can be included in the national In-Country Value (ICV) score if the owner is registered under the Wage Protection System (WPS) and receives their salary through the WPS. Additionally, the owner must be under the company’s visa. If these conditions are met, an Emirati owner can claim up to AED 120,000, while an expatriate owner’s salary must be excluded from the total cost. This distinction impacts the overall ICV scoring during the evaluation process.
The cost of obtaining an ICV certification varies based on several factors, including the company’s revenue, the nature of the license (commercial or manufacturing), the number of expatriate and Emirati employees, the number of ICV-certified vendors the business engages with, and whether the company directly deals with government-owned or semi-government entities. These elements influence the complexity of the audit and evaluation process, ultimately affecting the certification cost.
Yes, while the primary purpose of ICV certification is to enhance eligibility for government tenders, companies that want to demonstrate local economic contribution and strengthen their market position can also apply.
A business with multiple branches can use a single combined ICV certificate Dubai only if the branches are in the same Emirate, with identical business activities and ownership listed on the licenses. If not, each branch will be considered a separate legal entity and must obtain a separate ICV certificate even if the ownership is the same.
Yes, the salaries of foreign employees are partially counted. When calculating the ICV score, the salaries are considered only if the employees are under the company’s visa, whereas 100% of salaries are counted for UAE nationals.
No, the ICV certification has nothing to do with a company’s tax obligations.
Effective Strategies to Improve Your ICV Score in the UAE https://youtu.be/XKXCN2qJUqY?si=y5CJ9TDXaFZ2WNik If you and your competitor have an ICV certificate, why did they get the tender and not you? There may be multiple other reasons, but one main reason is a higher ICV score. Yes, the higher your ICV score, the bigger the competitive advantage […]
The In-Country Value Certificate is the key to securing more government contracts and gaining a competitive advantage in the corporate business race.
