Improving Local Investment and Economic Impact with ICV Certification in the United Arab Emirates

The In-Country Value (ICV) certification in the United Arab Emirates (UAE) has become a crucial initiative aimed at strengthening the national economy. Launched by the Abu Dhabi National Oil Company (ADNOC) and later expanded across various government and semi-government entities, the ICV program encourages businesses to invest in local industries, workforce development, and supply chains. By obtaining ICV certification, companies can unlock new opportunities while contributing to the UAE’s vision for economic diversification and sustainability.

What is ICV Certification?

ICV certification is a program designed to assess and reward businesses based on their contribution to the UAE economy. The certification evaluates factors such as:

• Local procurement spending – Sourcing materials and services from UAE-based suppliers.

• Employment of UAE nationals – Supporting Emiratization and workforce development.

• Investment in local manufacturing and infrastructure – Enhancing domestic production capabilities.

• Company revenue and expenditures within the UAE – Retaining profits within the country to boost economic growth.

Companies with a higher ICV score gain a competitive advantage when bidding for government and semi-government contracts, as these entities prioritize businesses that align with national economic goals.

How ICV Certification Drives Local Investment

ICV certification encourages businesses to channel their investments into the UAE’s local economy. By prioritizing local suppliers and services, companies reduce dependency on imports and strengthen homegrown industries. This shift not only enhances economic stability but also creates new opportunities for small and medium enterprises (SMEs) to thrive.

Additionally, businesses that invest in advanced technologies, infrastructure, and workforce training benefit from long-term cost savings and increased efficiency, further boosting their ICV scores.

Economic Impact of ICV Certification in the UAE

The ICV program plays a significant role in shaping the UAE’s economic landscape by:

• Creating job opportunities for UAE nationals – Encouraging businesses to hire and train Emiratis, fostering a skilled local workforce.

• Boosting industrial development – Promoting local manufacturing and reducing reliance on imported goods.

• Enhancing business competitiveness – Companies with high ICV scores gain preferential treatment in procurement processes.

• Supporting national economic diversification – Aligning with the UAE Vision 2030 to reduce dependence on oil revenues and strengthen non-oil sectors.

Steps to Obtain ICV Certification

Businesses seeking ICV certification must follow these steps:

1. Assess eligibility – Determine if your company meets the program’s requirements.

2. Prepare financial statements – Submit audited financial statements, as they form the basis for the ICV score calculation.

3. Engage with an authorized certifying body – Choose from approved certification agencies in the UAE.

4. Obtain the ICV certificate – Receive an official ICV score that can be used when bidding for contracts.

Conclusion

ICV certification is more than just a compliance requirement—it is a strategic tool for businesses looking to establish a strong presence in the UAE market. By improving local investment and economic impact, the ICV program helps create a more sustainable and resilient economy while offering companies valuable growth opportunities. Businesses that align with the UAE’s vision for economic development will not only benefit from preferential treatment in procurement but also contribute to the nation’s long-term prosperity.