Boosting Local Development Under the UAE’s ICV Framework

In recent years, the United Arab Emirates (UAE) has taken bold steps to strengthen its national economy, reduce dependency on imports, and empower local industries. At the heart of this vision lies the In-Country Value (ICV) program, an initiative designed to prioritize and reward companies that contribute to the UAE’s economic development. Central to this program is the ICV Certificate, a tool that assesses a company’s contribution to the national economy based on specific criteria.

What is the ICV Certificate?

The ICV Certificate is issued to businesses operating in the UAE that demonstrate value creation within the country. It evaluates a company’s spending on local goods and services, investments in Emirati manpower, and capital investment, among other metrics. The higher a company’s ICV score, the more favorably it is considered for government and semi-government contracts.

Introduced by ADNOC and later adopted across federal and local government entities, the ICV program is part of the UAE’s broader strategy to drive economic diversification and sustainable development.

Objectives of the ICV Program

The key objectives of the ICV initiative include:

• Enhancing local supplier participation in government procurement.

   

• Creating more job opportunities for UAE nationals.

   

• Stimulating investment in the national economy.

   

• Encouraging knowledge transfer and technology advancement.

   

By rewarding companies with high ICV scores, the government ensures that procurement budgets translate directly into local economic benefits.

How Companies Benefit

Businesses that obtain a high ICV score can gain a competitive edge when bidding for public sector contracts. This includes entities like ADNOC, Aldar, and several UAE ministries. Benefits include:

• Preferred supplier status for tenders.

   

• Improved brand image as a local value contributor.

   

• Access to larger, long-term projects.

   

Additionally, companies that focus on training Emiratis, sourcing locally, and investing in local assets naturally improve their ICV standing.

Steps to Obtain an ICV Certificate

To get certified, companies must:

1. Audit their financial statements through an approved ICV certifying body.

    

2. Complete the ICV template, detailing spending and investments.

    

3. Submit documents for verification and evaluation.

    

The certification is valid for 14 months and must be renewed annually. Different certificates are required for each legal entity within a group, even if they operate under a single brand.

Challenges and Considerations

While the benefits are clear, businesses must navigate challenges such as:

• Understanding complex ICV calculation criteria.

   

• Balancing operational needs with local sourcing targets.

   

• Keeping up with regulatory updates.

   

Partnering with a certified ICV consultant can help companies streamline the process and maximize their score.

Conclusion

The UAE’s ICV program is more than a certification—it’s a roadmap for businesses to align with national development goals. By embracing the ICV framework, companies not only gain access to high-value contracts but also become active participants in shaping a resilient, diversified economy.

As the UAE continues to drive localization and innovation, the ICV Certificate will remain a vital tool for companies looking to thrive in one of the region’s most dynamic markets.