Company Formation
The UAE government started the In-Country Value (ICV) program. This program aims to help the local economy by encouraging businesses to buy goods and services from local suppliers. The goal is to boost economic growth, create jobs, and make UAE companies more competitive.
An important part of this program is the ICV certification. This certificate shows that a company is dedicated to adding value locally. Getting an ICV certificate can help a company win government contracts and tenders. It also helps with the country’s efforts to diversify its economy and promote long-term growth.
The In-Country Value (ICV) Certification is a program initiated by the Abu Dhabi National Oil Company (ADNOC) to evaluate and certify the contributions of businesses operating in the UAE towards the local economy. This certification measures the extent of local procurement, employment of UAE nationals, and investment in local infrastructure and services. It is part of a broader initiative to enhance economic performance and redirect public spending towards local industries, thereby promoting sustainable growth within the country.
Main Objectives of ICV Certification in UAE
The primary objectives of the ICV Certification include:
The ICV Certificate UAE Program offers several key benefits:
ICV Certification is particularly relevant for:
Getting ICV Certification comes with a lot of benefits:
To obtain an In-Country Value (ICV) Certificate in Dubai, UAE, businesses must meet specific eligibility criteria:
The process for obtaining an ICV Certificate involves several steps:
1. Prepare Audited Financial Statements: Obtain financial statements from registered auditors that comply with International Financial Reporting Standards (IFRS). New companies under 10 months old can use management accounts instead.
2. Complete the ICV Template: Fill out the ICV certificate template accurately, which is available on the Ministry of Industry and Advanced Technology (MOIAT) website.
3. Contact an Authorized Certifying Body: Approach a certifying body authorized by MOIAT to assist with your application.
4. Application Evaluation: The certifying body will review your application and supporting documents for accuracy.
5. Approval from the ICV Committee: After evaluation, the committee will approve your application based on the certifying body's assessment.
6. Receive Your ICV Certificate: Once approved, the certifying body will issue your ICV Certificate, which can then be presented to relevant entities.
The ICV score is a critical component of the ICV program, serving as a quantitative measure of a company's contribution to the local economy. The score is calculated based on several factors, including:
A higher ICV score indicates a greater contribution to the local economy, enhancing a company's competitiveness in government tenders and contracts. The importance of ICV scores lies in their ability to:
Improving your ICV Score can be achieved through several strategies:
The ICV certificate is valid for a specified period, typically 12-18 months, depending on the certification body and the company's specific circumstances. During this period, the certificate holder must comply with the ICV program's requirements and maintain their ICV score.
To maintain their ICV certification in Dubai, UAE companies must renew their certificate before the expiration date. The renewal process typically involves:
1. Submission of updated documentation: Companies must provide updated financial statements, procurement records, and other relevant documents to support their ICV score calculation.
2. ICV score recalculation: The certification body will recalculate the company's ICV score based on the updated documentation.
3. Audit and verification: The certification body may conduct an audit to verify the accuracy of the submitted documentation and the calculated ICV score.
4. Certificate renewal: If the company meets the ICV program's requirements, the certification body will renew the ICV certificate for another validity period.
Getting ICV certification is an important move for businesses in the UAE. This is especially true for those looking to bid on government contracts. By showing they add value locally, companies can boost their chances of winning these contracts and help the UAE grow economically.
The expert team at Reyson Badger supports you in obtaining your ICV (In-Country Value) certificate. Our team will handle all the formalities and procedures required to secure your certification, ensuring a smooth and hassle-free experience for you. We work in partnership with approved ICV certifying bodies that are officially recognized and authorized to issue the ICV certification. By choosing our services, you can be confident that your UAE ICV certificate will be issued by one of the accredited and reputable certifying organizations listed under the ICV program.
FAQs
Who Needs an ICV Certificate?
Companies operating in the UAE, particularly those participating in government tenders and contracts, are required to obtain an ICV certificate. This includes:
What Does the ICV Score Represent?
The ICV score represents a company's contribution to the local economy, calculated based on factors such as local spend, local content, Emiratization, and research and development.
Can Foreign Companies Obtain ICV Certification?
Yes, foreign companies with a UAE presence can obtain ICV certification. However, they must meet the ICV program's requirements and demonstrate their commitment to local value addition.
What is The ICV Program?
The ICV program is an initiative launched by the UAE government to promote local economic development by encouraging the procurement of local goods and services. The program aims to stimulate economic growth, create jobs, and enhance the competitiveness of UAE based businesses.