National In-Country Value (ICV) Certification
In the UAE, an In-Country Value (ICV) Certificate is essential for government and ADNOC tender submissions. The In-Country Value (ICV) Program’s primary goal is to diversify the UAE economy by localizing more goods and services, expanding employment opportunities for UAE citizens in the private sector, and localizing key functions in various industries. Under the direction of the Ministry of Industry and Advanced Technology (MoIAT) 2021, the Program was subsequently implemented at the national level.
What does the In-Country Value (ICV) Certificate Program offer?
Under the National In-Country Value (ICV) Program, certifying bodies in the UAE offer issuance of ICV Certificates. Further, the program extensively enhances the ICV Score of companies through workforce Emiratization, growth and local investment. Audit firms in the UAE highly ensure that companies are geared up to submit pre-audited financial statements, as an essential requisite to obtaining the National In-Country Value (ICV) certification. Under the ICV program, Audit firms in the UAE essentially safeguards that companies are fully compliant to the set ICV regulations and standards.
Main objectives of ICV Certification
The ICV certification program was designed to accomplish the following main goals:
-
⦿ To promote Emiratis’ job prospects in the private sector
⦿ To facilitate GDP diversification
⦿ To provide local businesses with technological expertise
⦿ To enhance regional supply networks
⦿ An organization’s ICV certificate establishes a contractor’s or supplier’s In-Country Value contribution to the UAE economy. An ICV certificate may give suppliers and contractors
a considerable edge over competing businesses during the bidding process.
How to apply for an ICV Certificate in the UAE?
⦿ Before applying for an ICV certificate in the UAE, suppliers must be aware of the necessary conditions. Suppliers may help ICV certification service providers in Dubai to get their ICV certificates. The essential prerequisites are as follows:⦿ The suppliers should get the ICV certificate for each of their legal entities if they need to be certified. Even if the Firm’s owner is the same, the government views each license as a distinct legal entity.
⦿ Certifying bodies in the UAE will issue the ICV certificate.
⦿ According to suppliers, the scores submitted in the ICV certificate should match exactly with the supplier’s audited financial records. Additionally, it is essential to confirm that the financial statements are audited in line with international financial reporting standards (IFRS).
⦿ The financial statements that have undergone an audit cannot be more than two years old as of the certification year. To be eligible for ICV certification in 2022, vendors must not submit audited financial statements older than 2020.
⦿ Companies that have less than ten months of establishment cannot have financial statements that have been audited. These businesses are eligible to submit Management Accounts of up to a 9-month period, which may be utilized for ICV calculations. Audits should be performed on management accounts that are older than nine months.
⦿ Commencing from the day the audited financial statements are produced, the ICV certificate will be valid for 14 months. During the time of validity, suppliers can rectify their ICV certifications using the same audited financial statements. However, the validity period of 14 months commencing from the initial issuance will remain the same.
⦿Suppliers should choose approved certifying firms that can prepare and issue ICV certificates in the UAE.
⦿For an entity to qualify as a Goods Manufacturer in the UAE, the business must possess an industrial license.
⦿ The ICV Certification program stipulates that vendors that are neither goods manufacturers nor holders of an “industrial license” will be regarded as service providers.
How to Get an ICV Certificate in the UAE?
To obtain an ICV certificate in the UAE, certifying bodies issue the ICV certificate. The basic procedures listed below must be followed:
⦿ Complete the certificate application form according to current requirements and the financial statement.
⦿Use the certificate under each relevant authority’s recommendations.
ICV score is an essential component of the bidding process. Vendors must submit the supplier’s submission form and contact an approved certifying body for ICV certificate issuance. The UAE ICV certificate can only be obtained through ICV-accredited auditors/Audit Firms in the UAE.
Free Consultation
With over 11 years of experience, we’ll ensure you always get the best service.
Know More
FAQ's
To obtain an ICV Certificate in the UAE, certifying bodies issue the ICV certificate.
Under ICV rules, any organization, whether it is located within the UAE or outside can obtain an ICV Certificate. Since the ICV Score is a crucial component for contract review and award process, Tier 1 suppliers, i.e. the suppliers that directly provide products or services to the Program Partners, may be compelled to disclose it as part of the National ICV Program. To guarantee that they are competitive in their tender with Tier 1 suppliers, Tier 2 and below providers may also be asked to present their ICV Certificates.
The Company’s value addition to the UAE economy is reflected in the ICV Score. The following factors are taken into account in order to reach the Score, which is expressed as a percentage:
⦿ Manufactured goods for commercially regulated suppliers.
⦿ Procurement of products and services from third parties
⦿ Growth and local investment
⦿ Workforce Emiratization
⦿ Contribution of expatriates
⦿ Revenue generation outside of the UAE.
Each ICV certificate is valid for 14 months, commencing from the day the audited financial statements were issued, the date on which the financial statements were signed, or on the earlier issuing of new financial statements.
No minimum rating or benchmark is necessary to submit a tender bid for a tender. Based entirely on the audited financial records of the Company, the Score is determined and will change depending on the various qualities. The ICV score will be 0 if a corporation participates in a tender without having an ICV certificate.
ICV Implementation and ICV Certification are the two components that make up the In-Country Value program.
⦿ The ICV certification component is standardized and coordinated across all ICV participating organizations and is overseen by the Ministry of Technology and Advanced Technology (MoIAT). All of the involved organizations consider the unified ICV certificate. A single ICV certificate per legal entity, to be utilized by all participating companies, is thus all that Suppliers must provide.
⦿ At each entity level, a different ICV implementation will be used. It illustrates how each participating organization will apply the certificate to its operations. As a result, each participating organization will evaluate the ICV certificate in line with its policy.
To get an ICV certification, all suppliers are highly urged to undergo the ICV examination and certification procedure.
Free Consultation
With over 11 years of experience, we’ll ensure you always get the best service.
Know More
How to apply for ICV Certificate in the UAE?
⦿ Before applying for ICV certificate in the UAE, suppliers must be aware of the necessary conditions. Suppliers may help ICV certification service providers in Dubai to get their ICV certificates. The essential prerequisites are as follows:
⦿ The suppliers should get the ICV certificate for each of their many legal entities if they need to be certified. Even if the Firm’s owner is the same, the government views each license as a distinct legal entity.
⦿ The MoIAT will issue a combined ICV certificate for the Firm in that Emirate if a company has many branches in the same Emirate that carry out comparable operations and are owned by the same entity.
How to Get an ICV Certificate in the UAE
To get an ICV certificate in the UAE, the MoIAT has created a simplified process. The top ICV certification service providers in Dubai can advise Suppliers on the procedure. To receive the ICV certificate, the basic procedures listed below must be followed:
⦿ Publish the company’s or supplier’s audited financial accounts following IFRS.
⦿ Complete the certificate application form according to current requirements and the financial statement.
⦿ Use the certificate under each relevant authority’s recommendations.
ICV score has now become a crucial component of the ADNOC bidding process. All ADNOC vendors must submit the supplier submission form and contact an ADCOC certifying body for an ICV certificate.
The ICV certificate is only available in the UAE through ICV-accredited auditors or audit firms. Only the audit report of an entity provided by an authorised external auditor or audit firm from the government of the UAE will be used by the ICV auditor or audit firm to issue the ICV certificate.
