ICV Explained what UAE Companies Must Know Right Away

The In-Country Value (ICV) program has become a key pillar in the UAE’s efforts to strengthen its local economy, promote Emiratization, and encourage investment in domestic capabilities. For companies operating within the UAE — particularly those engaged with government or semi-government entities — understanding the ICV certification process is no longer optional; it’s essential.

What Is the ICV Certificate?

The ICV certificate is a document that measures the contribution a company makes to the UAE economy. Introduced by ADNOC and now expanded to other government entities under the Ministry of Industry and Advanced Technology (MoIAT), the ICV program evaluates factors such as:

• Local manufacturing spend

   

• Emirati workforce employment

   

• Investment in local infrastructure

   

• Local sourcing and procurement

   

• Company profits retained within the UAE

   

The certificate is issued annually by an authorized certifying body and must be renewed to remain valid.

Why It Matters for UAE Businesses

ICV certification has become a critical factor in the procurement process for public-sector contracts. Companies with a higher ICV score are more likely to win tenders or receive preferential treatment in bidding processes. As the ICV program expands, even private sector collaborations and partnerships increasingly consider ICV scores as a strategic metric.

In essence, ICV is now both a competitive advantage and a gateway to long-term business sustainability in the UAE.

Who Needs an ICV Certificate?

Any company wishing to do business with ICV-adopting entities — including ADNOC, Aldar, Etisalat, and others — should pursue ICV certification. This includes companies across various industries, such as:

• Oil and gas

   

• Construction and infrastructure

   

• Manufacturing

   

• IT and telecommunications

   

• Logistics and transport

   

Even businesses not directly working with government contracts may benefit from ICV readiness, especially as more organizations align with the national strategy for industrial development.

How Is the ICV Score Calculated?

The ICV score is calculated based on a company’s audited financial statements and supplemental information provided in the ICV template. It generally considers:

• Goods and services sourced locally

   

• Wages paid to UAE nationals

   

• Investments in local assets (factories, equipment, etc.)

   

• Revenue retained in-country

   

The specific weighting may vary depending on the sector and size of the company.

Getting Certified: The Process

1. Prepare Audited Financials – The latest audited financials (not older than 2 years) are required.

    

2. Fill Out the ICV Template – Provided by MoIAT or certifying bodies, this captures all relevant data.

    

3. Submit to a Certifying Body – Accredited bodies will review and verify the submission.

    

4. Receive Certificate – Valid for one year and must be renewed annually.

    

Tip: Companies are encouraged to develop ICV improvement plans to raise their score over time, aligning with UAE’s localization goals.

Conclusion

As the UAE drives forward its “Make it in the Emirates” and “Operation 300bn” strategies, ICV certification is more than a regulatory requirement — it’s a reflection of a company’s commitment to national development.