The Dilemma of Outsourcing vs. Local Investment: What Gives Better ICV Scores in 2025?
ICV scores aren’t just any numbers on a report. They are important numbers. In the UAE, they decide who wins the big contracts and who gets left behind. The government’s push for local value creation is changing how companies do business in 2025.
And here’s where the real choice comes in: do you invest in local resources or outsource to keep costs low? One can lift your ICV score and open doors to high-value tenders. The other might save money now but cost you opportunities later.
This is the tug-of-war every serious player in oil, gas, and other key sectors is facing.
Understanding ICV and Its Significance in 2025
ICV stands for In-Country Value. It’s a program designed to keep more of every dirham spent by businesses inside the UAE. Any money going out is basically a loss for the economy in the long run. The goal is simple: more Emiratis in jobs, a stronger non-oil economy, and less reliance on imports.
The rules are getting stricter in 2025. Companies won’t get high scores unless they spend more locally, hire more UAE nationals, and build real ties with UAE-based suppliers. It’s no longer about filling out paperwork. Auditors now want to see proof like how you hire, where you buy from, and how much you invest back into the country.
An ICV certificate is no longer optional if you want to win big contracts in oil, gas, or other key sectors. Your score tells government buyers and private clients if you’re serious about supporting the UAE’s economy. A high ICV score pushes you to the front of the line. A low one can lock you out, no matter how good your prices or services are.
In short, ICV isn’t just another compliance box to tick. It’s the ticket to competing and winning in 2025. In the competitive economy of the UAE, you need a higher score and before that you need your ICV certificate in UAE is a must.
Key Components Affecting ICV Scores
ICV score is built on specific, measurable actions your business takes in the UAE. These are the factors that matter most:
Local Procurement
This is the biggest driver of your ICV score. The more you spend on UAE-based suppliers, the higher you climb. It’s not just about how much money goes out the door, it’s also about what percentage of your total purchases stay in the UAE. Whether it’s machinery, raw materials, or essential services, local sourcing shows commitment to the national economy and gives your score an immediate boost.
Investment in the UAE
The program rewards businesses that put real money back into the country. That could mean building new facilities, upgrading technology, opening R&D centers, or expanding infrastructure on UAE soil. Capital investment signals long-term intent, not quick wins. The more visible your footprint here, the stronger your ICV rating becomes.
Emiratization
Hiring UAE nationals isn’t optional anymore if you want to compete in 2025 tenders. But the score isn’t just about headcount. It looks at how you develop Emirati talent. Are you offering training, leadership pathways, and real career growth? Companies that do this well stand out and get rewarded with higher ICV scores.
Expat Talent Utilization
Expatriates still count toward your workforce contribution, but their weight is lower than Emiratis. A balanced team matters. If your company relies too heavily on foreign workers without integrating local hires, expect your score to dip.
Bonus Factors
If you are all into earning more than the basic score, there are certain things you can do. Actions like exporting UAE-made products, showing consistent investment growth, engaging in local community projects, or transferring technology to UAE partners all work in your favor. These steps prove you’re not just making profits here, you’re building value for the country’s future. It shows your business is actually building the economy and benefitting the country. ICV Score is all about that.
Outsourcing: Definition and Impact on ICV Scores
Outsourcing in the UAE is simple. You hand over part of your operations to external providers instead of building local capabilities. Sometimes that means overseas suppliers. Other times, it’s non-local vendors inside the region. Either way, the work and money leave the UAE’s immediate economy. It is the opposite of ICV.
Outsourcing has its perks. It can cut costs fast. It gives you flexibility, letting you scale up or down without heavy commitments. You can tap into specialized skills that might be scarce locally. For companies moving quickly, it often feels like the fastest way to get things done.
But there’s a trade-off when it comes to ICV scores. Money spent outside the UAE means less local procurement value. Your ICV certificate Dubai will be a bad story. Relying on expat-heavy teams reduces your Emiratization score. With no facilities, assets, or long-term local hires, you’re missing out on capital investment points too.
The result is lower ICV scores and not insignificant. You will have many losses with low ICV scores. That can hurt your standing in government tenders, especially in oil and gas where ICV compliance is closely checked. Companies that depend too much on outsourcing often find themselves priced out of big contracts, even when their services are strong.
Local Investment: Definition and Impact on ICV Scores
Local investment isn’t just a line in your annual report. It’s money, talent, and resources planted firmly in the UAE economy. It’s building factories and service facilities, hiring Emirati professionals, and running research and development with local suppliers. Unlike outsourcing, this leaves a visible, lasting footprint that the ICV program actively rewards.
How It Lifts Your ICV Score
Local investment pushes your ICV rating up fast. Every dirham spent on infrastructure or technology shows you’re committed to long-term growth. Local procurement keeps funds circulating inside the UAE, adding more points to your score. Add Emiratization, hiring and training nationals, and you’re no longer just eligible for big contracts. You’re one of the top contenders.
The Long-Term Advantage
This isn’t only about scoring high today. Companies that invest heavily in the UAE build trust with government entities. They earn preferential treatment in tenders and are seen as reliable partners aligned with the country’s long-term goals. That reputation creates a competitive edge no outsourcing-heavy business can easily match.
Real Results in Action
Look at oil and gas. Major players that built assembly lines, opened service centers, and hired Emirati engineers have climbed steadily in ICV rankings. They win more tenders and lock in long-term partnerships with national operators. The strategy works and it keeps paying off year after year.
Comparative Analysis: Outsourcing vs. Local Investment for ICV Scores in 2025
When it comes to ICV scores, outsourcing and local investment pull in opposite directions. Here’s how they stack up against each other on major scoring factors:
| ICV Attribute | Outsourcing | Local Investment |
|---|---|---|
| Local Procurement | Low – spending goes to external suppliers outside UAE | High – majority of spend is within UAE supply chains |
| Capital Investment | Minimal – no facilities or infrastructure built locally | Significant – new plants, tech centers, and R&D hubs |
| Emiratization | Limited – workforce is mostly expat-heavy | High – hiring, training, and developing UAE nationals |
| Expat Talent Weighting | Weighted lower in score calculations | Balanced workforce mix gives higher score |
| Bonus Factors | Few opportunities for export growth or community impact | Greater scope for exports, tech transfer, and social contribution |
Mainland Companies: Why Many Still Prefer This Route
In 2025, ICV scoring is weighted heavily toward local spending and Emirati hires. Over 65% of the score depends on these two factors. Companies that lean too much on outsourcing risk losing major points, no matter how much money they save in the short term.
The trade-off is obvious. Outsourcing trims costs today. Local investment wins you tenders tomorrow. Government projects and big private contracts favor companies with strong local roots.
The smart play? Outsource only what you can’t get locally, specialized tasks, niche skills, or temporary support. Everywhere else, spend in the UAE, hire locally, and build your presence on the ground. That’s how you keep costs in check without losing the ICV advantage that decides who lands the deal.
How Companies Can Optimize ICV Scores in 2025
You don’t need an all-or-nothing approach. Companies can combine outsourcing with strong local initiatives to maximize their ICV scores. Here’s how:
- Maximize Local Procurement: Source materials, services, and suppliers from within the UAE wherever possible, even if part of the work is outsourced overseas.
- Increase Emiratization: Create targeted hiring and training programs for UAE nationals to boost workforce score weighting.
- Invest Strategically: Channel capital into local facilities, technology upgrades, and R&D centers to build a long-term presence.
- Build Local Partnerships: Collaborate with UAE-based SMEs, join community development projects, and share technology and knowledge to gain bonus points.
- Develop an ICV Improvement Plan: Show clients and auditors a clear roadmap for boosting local value year after year, proving long-term alignment with national goals.
Optimizing ICV isn’t just a compliance exercise, it’s a competitive strategy. In 2025, companies that weave local investment into their operating model will stay ahead in tenders and secure stronger government and private partnerships than those relying on outsourcing alone.
ADEPTS: Your Partner in ICV Score Improvement
ADEPTS is a leading name in ICV certification services across the UAE. With deep knowledge of the National In-Country Value (ICV) program, ADEPTS helps businesses turn ICV scoring from a challenge into a growth opportunity.
Their services cover the entire process: ICV auditing, strategy development, Emiratization solutions, local procurement guidance, and investment advisory. Whether you’re a multinational supplier or a growing SME, ADEPTS builds a custom plan to raise your ICV score and keep you competitive in government and private tenders.
What sets ADEPTS apart is its balanced approach. The team helps companies figure out where outsourcing makes sense, and where local investment delivers maximum ICV benefit. The goal is not just to meet compliance requirements but to unlock long-term advantages in the UAE market.
Several clients in oil and gas, manufacturing, and services have seen significant ICV score improvements after working with ADEPTS, leading to more tender wins and stronger partnerships with national entities.
Conclusion
In 2025, ICV will decide who wins and who watches from the sidelines. It’s no longer a box to tick. It’s a real advantage in a market where government tenders and big contracts are up for grabs.
Companies that spend and hire locally climb higher on the scorecard. They build stronger ties with decision-makers and get first pick on opportunities. Outsourcing can still help in some cases, but only if it’s done without draining value out of the UAE economy.
If your goal is to compete and win, you need more than good pricing or a big name. You need a clear ICV strategy. You need the right partner to help you plan, certify, and improve your score. ADEPTS does exactly that, giving you a smarter path to balance costs, meet requirements, and stay ahead in the UAE market.
FAQs:
ICV certificates usually last 14 months. To renew, you’ll need fresh financial data and proof that you’re still meeting your commitments.
Yes. Small businesses can score high if they buy from local suppliers, hire Emiratis, and build smart partnerships in the UAE.
You’ll need audited financial statements, a clear record of spending and procurement sources, your workforce breakdown, and other supporting data.
The core rules stay the same: spend locally, invest locally, hire locally. The weighting may shift a bit depending on your sector, like construction, healthcare, or manufacturing.
Yes, positively. Revenue from exports adds bonus points, showing you’re helping strengthen the UAE’s global trade presence.
Yes. Companies that misreport data or don’t deliver on promises can face reduced scores, tender disqualification, or other penalties.
The UAE has the most established program. Others in the GCC are catching up, but the UAE’s ICV is more mature and closely linked to government procurement.
There’s no strict minimum. But higher scores mean better chances of winning.
Sharing technology and know-how with local partners adds bonus points to your score. It shows long-term commitment to UAE expertise.
Yes. CSR efforts like supporting education, training programs, or social projects can improve your bonus factors and boost your overall score.
