Effective Strategies to Improve Your ICV Score in the UAE
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 and the higher the chances of securing a government project.
The ICV 3.0 active enforcement phase in 2026 represents the pinnacle of the UAE’s economic diversification efforts. It is no longer just about “opportunities” — it now includes commercial scoring levers and tender prerequisites.
The program has evolved into the unified ICV 3.0 framework, which now spans over 31 federal and semi-government entities, including newly added entities such as Modon Holding, Emaar, and Silal Food & Technology. The scope has expanded beyond oil and gas to include real estate, technology, and food security.
In this article, we dive into why achieving a high ICV score is crucial, how to improve it, and why it is now a mandatory requirement for government tenders.
Understanding ICV Certification in the UAE
The In-Country Value Certificate (ICV) was launched in 2018 in the UAE to strengthen and diversify the economy and reduce import dependence. The ICV certificate assesses how many Emirati employees a business hires, how much of the company’s resources are sourced from local companies, and how much money and resources are invested in the economic infrastructure.
The ICV certificate mandates a 10% Emirati representation in skilled roles by the end of 2026. It also ensures that companies are verifying vendor ICV certificates through the MoIAT digital platform, ensuring greater accuracy and compliance.
Having a good ICV score gives a company a significant competitive edge over its competitors. The government prefers to prioritize and award tenders to companies with higher ICV scores because a high ICV score means high support for the local economy.
By encouraging businesses to work with local companies and invest in the economic infrastructure, the UAE aims to diversify the economy and become less reliant on oil and gas. It also aims to enhance manufacturing, technology, and medical sectors.
Providing support to domestic companies means that SMEs can grow their business, hire more Emiratis to fulfill increasing orders, and ultimately keep the money circulating within the country.
While ICV certification is not a compulsion in UAE, any company that wants to work with the government and participate in tenders should get an ICV certificate UAE. Once issued, an ICV certificate is valid for 14 months from the date of issuance of audit report.
ICV 3.0: Digital Verification and the Role of MoIAT
In 2026, ICV scores are now system-generated through the MoIAT Digital Conformity Ecosystem. The certification process has moved away from manual calculation by auditors. The certificate is now a digital credential that can be verified via QR code against the MoIAT’s live database. UAE Pass and the MoIAT Blockchain are central to this process, ensuring real-time validation and digital access.
Why Enhancing Your ICV Score Matters?
The Right-of-First-Refusal and Preferential Scoring in Government Tenders
We all know that having an ICV score matters the most when you are competing against many businesses and trying to win a government tender. But if you and your competitor both have an ICV certificate, in that case, the one having a higher ICV score is more likely to win the projects as they are contributing more to the economy and, therefore, will be given a preference over you.
If a high-ICV bidder is within a certain percentage (often 5-10%) of the lowest financial bid, they may be given the Right-of-First-Refusal and an opportunity to match the price and win the tender.
Stronger Relationships with Local Suppliers and Stakeholders
Corporate Social Responsibility & Alignment with Operation 300bn and the 'Make it in the Emirates' Initiative
The ICV certification program was started in accordance with the UAE’s goal of reducing dependence on oil and gas and improving the technological, medical, and other sectors of the economy.
Therefore, companies with high ICV scores show that they are working to create more job opportunities for Emiratis and train people in the necessary skills. This shows that these businesses are socially responsible and are not just interested in generating profits but also in helping improve the local economy.
The Financial Cost of Non-Compliance in 2026
A business with a good ICV score enjoys sustainable growth. This growth is sustainable because the companies invest in the local economy, support the SMEs, and create a stable environment. Moreover, ICV-certified companies are able to get government support and secure loans from banks on easy installments, making them a safe investment for foreigners.
Failure to comply with ICV requirements in 2026 can lead to severe financial penalties, including an AED 6,000 monthly penalty per missing Emirati, which impacts the Emiratization component of the ICV score.
Impact of High ICV Score on Tender Evaluation
| Bidder Type | Original Financial Bid | ICV Score | Adjusted Commercial Score | Result |
| Bidder A (High ICV) | AED 1,000,000 | 75% | 92.5 (Weighted) | Winner (via Preference) |
| Bidder B (Low ICV) | AED 950,000 | 25% | 88.0 (Weighted) | Loser |
Key Strategies to Improve ICV Score
Local Procurement and Supplier Engagement
The first thing that can greatly impact your ICV score is Managing the ICV Verification Chain. Supporting the local economy will boost the UAE’s market and develop a sustainable business environment.
However, if a business does not rely heavily on procurement from within the UAE, then investing in assets like machinery and training the local Emiratis with the necessary skills can all help enhance the ICV score. In 2026, companies must audit their suppliers’ ICV certificates before procurement. If a supplier’s certificate has expired, it results in a 0% local spend contribution for that line item.
Additionally, replace the generic “subcontracting” advice with Tier-1 and Tier-2 Supply Chain Enforcement. This ensures that businesses are prioritizing the verification of ICV certificates across their supply chains.
Moreover, sourcing from “Free Zone” vendors without a certificate yields 0%, making mainland vendors a strategic choice for score improvement. There is also the 10% automatic grant rule for vendors based on the UAE mainland who do not hold a valid certificate.
Workforce Localization and Training
One of the many factors that can enhance your ICV score is the Emiratization of your firm. As per the formula for calculating the ICV score, meeting the 10% Emiratization Milestone by the end of 2026 could directly impact your score by 15%. It’s not just the hiring; offering and training them with the necessary skills also impacts your ICV score.
It’s important to note that from July 1, 2026, any Emirati employee earning less than AED 6,000 per month will no longer count toward the ICV score.
Infrastructure and Capital Investments
Investing in the UAE’s infrastructure and capital, such as office spaces, equipment, machinery, etc., means contributing to the local economy, which impacts your ICV score substantially.
Moreover, producing your own resources, establishing production units, or locally sourcing your resources helps you enhance your score. This way, you are not just reducing dependence on imports; you are actually creating more job opportunities, training and upskilling more locals, strengthening the local supply chain, and supporting SMEs.
Maximizing NBV (Net Book Value) and Investment Growth Bonuses demonstrates your commitment to improving the UAE’s economic growth and business culture. The 2026 formula rewards Investment Growth (comparing current NBV to the previous year) with an additional bonus component.
Localizing Critical Equipment Manufacturing under ‘Make it in the Emirates’ strengthens the country’s manufacturing capacity, while supporting the broader goals of economic diversification.
Innovation and Sustainability Initiatives
Running a business that is not profit-focused only but takes measures to protect the environment by following unlocking the 3% Green ICV Bonus initiatives, such as reducing waste, using energy-saving technology, etc., achieves higher ICV scores.
Such businesses appear highly attractive to the government as they support the UAE’s goals of being eco-friendly, self-reliant, and a green energy business hub.
The 2026 Green ICV Strategy: Beyond Compliance
To qualify for the 3% Green ICV Bonus, businesses must provide documentation showing their commitment to sustainability. The four key documentation requirements are:
- Water Management
- Emission Management
- Circular Material Frameworks
- Sustainability Governance (0.5% each)
For example, the “eco-friendly self-reliant” educational center aligns with the UAE’s Green Energy goals and serves as a prime example of a sustainability-focused project.
Furthermore, possessing the Green Industries Label from the Environment Agency – Abu Dhabi, or specific ISO certificates like 14001, 14046, and 50001, grants an automatic 1% bonus within the sustainability component.
Case Studies of Successful ICV Implementation
ADNOC Case Study
In May 2025, ADNOC signed AED 6 billion framework agreements for the local manufacturing of cables and pressure vessels, potentially creating 1,300 jobs. This agreement exemplifies how a high ICV score can help secure substantial contracts, benefitting both ADNOC and local suppliers. By focusing on local manufacturing, ADNOC is contributing significantly to the UAE’s economic growth while enhancing its ICV score.
Aldar Case Study
Aldar has committed to AED 30 billion recirculation into the local economy in 2025. As part of this initiative, Aldar requires all contractors to hold valid ICV certificates. This move aligns with the UAE’s broader economic goals and ensures that Aldar and its partners maintain a strong presence in the local market. By implementing of-take agreements, Aldar has secured long-term revenue pipelines, driving sustainable growth in the UAE’s construction and real estate sectors.
ICV Impact Summary of Major Projects
| Project | Contract Value | ICV Requirement | ICV Impact |
| ADNOC | AED 6 Billion | Local Manufacturing | Creation of 1,300 Jobs, Strengthened Local Supply Chain |
| Aldar | AED 30 Billion | Valid ICV Certificates for Contractors | Long-Term Revenue Pipeline, Local Economic Recirculation |
Overcoming Challenges in ICV Enhancement
Regulatory Complexity
The biggest challenge that the companies in UAE face when it comes to increasing the ICV score is regulatory complexity. ICV score requirements are variable depending on the emirates your business is located in and the industry you are operating in.
Therefore, companies need to alter and improvise their ICV score strategies depending on what business they are involved in, what does their emirates require and what actions will impact how much of their ICV score.
From January 1, 2025, consolidated, bifurcated, or management accounts are no longer accepted for certification; each legal entity must have a specific audit report to comply with the Stand-alone Audited Financial Statements Mandate.
High Initial Investment
Local Supply Chain Limitations
Bookkeeping and Documentation
Keeping an accurate record is very important for ICV certification. Managing ERP-Driven Financial Governance and IFRS-Aligned Reporting on procurement, workforce composition, and financial performance can cause a lot of strain on the company as it is a resource-intensive process, especially for large corporations.
Evolving ICV Requirements
Audit and Verification Challenges
Creating a Strategic Plan for ICV Improvement
Since these are fairly common challenges, the companies based in the UAE usually make an ICV improvement plan that can systematically keep improving their ICV score.
Here is what a well-structured ICV improvement strategy must include:
- Analyzing the company’s existing ICV score and identifying key improvement areas.
- Increased procurement from UAE-based suppliers to improve local economic contributions.
- Hiring and training UAE nationals
- Expanding in-country manufacturing to support economic diversification.
- Tracking progress through periodic audits and aligning strategies to meet ICV targets.
Utilizing Professional Consultants for Certification
Since there are a million things to look into when it comes to ICV certification, companies tend to hire ICV consultation services. Consultants like Adepts navigate and streamline the ICV certification process for the companies and make things easier and simpler.
These consultants:
- Conduct audits to assess the financial records and workforce contributions by the company.
- Help businesses identify areas where they can increase their local spending.
- Help in submitting ICV improvement plans required by government tenders.
The Future of ICV: Trends and Opportunities
The UAE’s In-Country Value (ICV) program is changing to better support the country’s economic and sustainability goals. A major update is the Green ICV initiative, which encourages businesses to go green by rewarding them for adopting eco-friendly practices. This move pushes industries toward more sustainable operations.
Technology is also playing a bigger role in improving ICV scores. The UAE is making things easier by introducing digital conformity services, simplifying the integration of E-Invoicing (mandatory July 2026 / Jan 2027) into the ICV platform. By 2027, the MoF/FTA will have real-time visibility into B2B and B2G transactions, making manual ICV template errors impossible to hide.
At the same time, the Make it in the Emirates initiative is opening new doors for businesses. By offering incentives, it encourages companies to invest in local supply chains and advanced manufacturing, helping strengthen the UAE’s industrial sector and reduce reliance on imports.
ICV Score Formula Components:
- Local Spend (Manufacturing Cost / Third Party Spend): The percentage of total expenditure on UAE-based suppliers, raw materials, and services.
- Emiratization: Percentage of salaries paid to Emiratis, and investments in employee training.
- Expatriate Contribution: Value of a company’s reliance on expatriate labor for its operations. This is now tiered by headcount: 1-3% for 1-5 employees, up to 10% for teams above 200.
- Investment: Resources and Capital spent on local assets like Property, Plant and Equipment, Capital Work in Progress, Investment Property
- Advanced Technology and Sustainability Bonus: Investment in adopting advanced technologies and sustainable practices. It can add up to 6% to the ICV score, with contributions from technology transformation and environmental certifications.
- ICV Bonus – Revenue from Outside UAE, Emirati Headcount, and Investment Growth: Based on revenue from outside the UAE (Export) and investment growth.
FAQs
Companies submit audited financials to an approved ICV certifying body for assessment. Verification is now done through MoIAT-approved Certifying Bodies on the digital platform using the MoIAT Blockchain for validation.
Yes, SMEs can still bid by focusing on local sourcing and workforce development.
It typically takes six months to a year with a structured ICV improvement plan.
Digital tools help track local spending, workforce data, and compliance more efficiently.
Although it is not a regulatory requirement but it is highly recommended to get ICV certificate for better business oppurtunities.
Businesses balance ICV certification by gradually increasing local procurement and optimizing resources strategically.
Yes, by hiring Emiratis, investing in UAE-based production, and supporting local suppliers.
Misrepresentation of ICV related financial data may result in fines, disqualification from tenders, and potential legal consequences.
It supports economic diversification, job creation, and local industry growth.
References
- ADNOC Signs AED6bn Framework Agreements with 12 UAE-Based Companies to Locally Manufacture Critical Industrial Equipment.
https://www.mediaoffice.abudhabi/en/energy/adnoc-signs-aed6bn-framework-agreements-with-12-uae-based-companies-to-locally-manufacture-critical-industrial-equipment. - ALDAR AWARDS DEVELOPMENT CONTRACTS WORTH AED 66 BILLION ACROSS THE UAE IN 2025.
https://apigateway.adx.ae/adx/cdn/1.0/content/download/4681156. - Certification Guidelines for Suppliers .
https://moiat.gov.ae/-/media/site/moiat/programs/icv-formula/icv-supplier-certification-guidelines-oct-2023.ashx. - Employing Emiratis in the Private Sector.
https://u.ae/en/information-and-services/jobs/employment-in-the-private-sector/emiratis-employment-in-private-sector. - Issue a Value-Added Certificate in Accordance with the Arab Rules of Origin.
https://moiat.gov.ae/en/services/issue-value-added-certificate. - MoIAT Launches Green ICV to Reward Companies for Adopting Sustainable Practices. https://moiat.gov.ae/en/media-center/news/2023/10/10/zake1113.
