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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.
ICV certificate score is a measure of your role being played in the country’s economic growth. It measures the number of Emiratis you employ, how much material you are sourcing from within the UAE, and how much you invest in infrastructure, research, and development.
So, if you want to get a higher priority in the government tenders, enjoy working with big-scale projects, and grow your business multiplefold, you must achieve a high ICV score.
In this article, we dive into some details about why you need to have a good ICV score, how to increase it, and why you even need to increase it.

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.
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.

Why Enhancing Your ICV Score Matters?

Continuously working to improve your ICV score requires a lot of effort, but its impact is even bigger. Here is why enhancing your ICV score matters.

Competitive Advantage 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.

Stronger Relationships with Local Suppliers and Stakeholders

When you have a high ICV score, it is evident that your business is working more than others to improve the UAE’s economy. When the government sees you sourcing your material from local suppliers and stakeholders, strengthening your ties with them helps you look better in the eyes of the government and hence increases your chances of winning the tender.

Corporate Social Responsibility & UAE’s Vision

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.

Long-Term Business Sustainability & Economic Benefits

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.

Key Strategies to Improve ICV Score

Let’s look at a few strategies to help you effectively increase your ICV score.

Local Procurement and Supplier Engagement

The first thing that can greatly impact your ICV score is to establish long-term partnerships with local suppliers and procure your sources from local vendors. 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.

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, hiring Emiratis as your workforce, be it in the service sector or good manufacturing, 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.

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.
Investing in the country’s infrastructure and assets demonstrates your commitment to improving the UAE’s economic growth and business culture.

Innovation and Sustainability Initiatives

Running a business that is not profit-focused only but takes measures to protect the environment by following eco-friendly practices, 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.

Overcoming Challenges in ICV Enhancement

Increasing your ICV scores is easier said than done. Businesses have seemed to face the following challenges:

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.

High Initial Investment

Hiring emiratis, training and upskilling them, finding and sourcing material within the country regardless of the cost you get from importing, investing in the capital and infrastructure, following eco-friendly practices, all of these are difficult to say the least.
Implementing these things require businesses to invest a lot of money initially, and they may even face high costs in the beginning, and even strain the budget.

Local Supply Chain Limitations

Not every business can find local suppliers for their products and they rely heavily on imports. Finding local sources means spending time and money. Even if they are able to find a local source, the chances of not finding enough resources, or the same quality of resources means loss of sales and business to the company.
Implementing these things require businesses to invest a lot of money initially, and they may even face high costs in the beginning, and even strain the budget.

Bookkeeping and Documentation

Keeping an accurate record is very important for ICV certification. Managing extensive data 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

The demands and requisition for ICV certification are changing and evolving frequently, which means that businesses need to keep up with the changes and adjust their plans accordingly to ensure they are able to achieve the desired ICV score.

Audit and Verification Challenges

Businesses must go through periodic assessments to validate their ICV compliance, which can again be a time-consuming process, requiring extensive documentation.

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:
  1. Analyzing the company’s existing ICV score and identifying key improvement areas.
  2. Increased procurement from UAE-based suppliers to improve local economic contributions.
  3. Hiring and training UAE nationals
  4. Expanding in-country manufacturing to support economic diversification.
  5. 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 certification process, and motivating companies to use smart technologies for better compliance.

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:

  1. Local Spend (Manufacturing Cost / Third Party Spend): The percentage of total expenditure on UAE-based suppliers, raw materials, and services.
  2. Emiratization: Percentage of salaries paid to Emiratis, and investments in employee training.
  3. Expatriate Contribution: Value of a company’s reliance on expatriate labor for its operations.
  4. Investment: Resources and Capital spent on local assets like Property, Plant and Equipment, Capital Work in Progress, Investment Property
  5. Advanced Technology and Sustainability Bonus: Investment in adopting advanced technologies and sustainable practices. It can add up to the ICV score, with contributions from technology transformation and environmental certifications.
  6. ICV Bonus – Revenue from Outside UAE, Emirati Headcount, and Investment Growth.

FAQs

Companies submit audited financials to an approved ICV certifying body for assessment.

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.

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